Referring to a report issued by Knight Frank recently, “UK waterfront property: A premium you can bank on” which says that prime waterfront properties in the UK are worth an average of 60% more than their inland counterparts, Lanice Steward, managing director of Knight Frank Residential SA, has found it interesting to compare current average values of waterfront properties in the areas surrounding Cape Town, and perhaps tip which areas would be best to buy in right now.
All the figures below have been taken from Propstats, the Institute of Estate Agents Western Cape property data service, which is fast becoming an invaluable tool in assessing what current market values are, as these figures are sales captured as soon as they happen, rather than waiting for the transfer to go through – compared to what is captured on many of the other property data services which is only entered onto the system once the sale goes through (which can take anything from three to six months or more), said Steward. Propstats have two listing versions, “sale date” and “confirmed date” and the figures listed below have been taken from the sale date section.
“What we have done is taken a map of the Cape Peninsula and Western Seaboard, and listed the average selling prices of the more popular areas, and it is interesting to see how some areas are surprising in their average sales prices and achieved prices per square metre,” said Steward.
It is no surprise that Clifton is the premium area at the highest average selling price of R16 236 000, with Llandudno second on the list at R13 938 000. The cheaper areas are on the Western Seaboard and West Coast, because there is more land available there. The problem there is that there isn’t the easy access into Cape Town city centre, as there is from the Atlantic Seaboard, said Steward.
The exception is Muizenberg, but there has not been much new development there recently and they are still working on the regeneration of the area, she said.
But, she said, the hidden gem would probably be Hout Bay, because of its closeness to Cape Town and the lifestyle that it offers as well as all the improvements that have taken place over the last five years.
Hout Bay, however, has had over 30 sales in the last year priced over R5 million, which shows that there are the more elite pockets that are priced higher than the norm, she said.
“Here there are the benefits of living next to the second most expensive seaboard area in Cape Town but at prices similar to those of the West Coast. In addition to that, there are very good schools, a wide range of retail options, over 40 restaurants and bistros, coffee shops and a beach that is very popular because you can drive right up to it, rather than have to struggle for parking and walk a fair distance to get to it,” said Steward.
“The fact remains that waterfront properties are very sought after and the developable land on the coastline will eventually run out, which will push the prices up further.”