Development sales, which provide a leading indicator of overall market activity, have escalated dramatically in the Cape Town residential property market, reports Laurie Wener, MD of Pam Golding Properties in the Western Cape’s metropolitan region.
“While the demand for modern new apartments offering a secure and convenient lifestyle has been on a sustained upward trajectory since the start of 2013, this year (2014) has seen a marked uptick in concluded sales and the number of new projects brought to market. We have returned to the pre-recession situation where activity in the developments market is robust and limited only to the opportunities currently available.” Wener says generally, the bulk of prices in these developments tends to range from approximately R1.2 million to around R5 million.
“Developers are demonstrating a strong appetite and pro-actively looking for new opportunities for development, seeking to achieve prices to attain feasibility given the high costs of development – despite pressure from off-plan buyers who appear keen to meet new benchmark prices. However, while prices of new-build apartments are higher than existing homes, where the demand exceeds the supply buyers show willingness to commit and purchase off-plan, particularly where there is a highly attractive location/lifestyle component. There is also the added spin-off of sound investment potential over the medium to longer term.”
Hotspots for new residential developments are in the Cape Town city centre, Southern Suburbs such as Claremont and Kenilworth, and the Atlantic Seaboard, including the V&A Waterfront. New residential developments which have met with an enthusiastic market response include Belvedere Court in Claremont, where all 16 units recently sold through Pam Golding Properties (PGP) in just two months, and two new developments in trendy Green Point which also sold out through PGP – the Legacy comprising 53 apartments and 59-unit Odyssey. In addition the upmarket 22-unit development, The Vantage in Mouille Point, also sold out through PGP. A further successful residential development in Mouille Point is the landmark Amalfi luxury apartment building, which enjoys panoramic views across Table Bay, Green Point Urban Park and Metropolitan Golf Course, Table Mountain and the slopes of Signal Hill.
In The Quadrant, well positioned in the heart of the Claremont business district, the live, work, play concept has seen investors snap up residential units through PGP. Of the 154 units launched by the developer only 21 are now left for purchase at prices starting from R 1.15 million for a one bedroom unit. The final phase of The Quadrant is expected to commence construction in 2015, with a focus on a more mature buyer and including a state-of-the-art rehabilitation and frail care facility. A further 90 apartments, to be marketed on a life rights basis, are also envisioned, including a mix of one, two and three bedroom units.
Says Wener: “Buyers within these developments have already achieved sound capital growth on their investments. At The Quadrant, capital growth of 11 percent per annum has been achieved over a period of five years, which in real terms translates into gains of 55 percent on buyers’ original investments. The average rand per square metre value also appreciated significantly, improving by 95 percent from R12 310 to R24 054.”
Launch of ’44 on Palmyra’
Now Pam Golding Properties is exclusively marketing four brand new plot and plan homes in Claremont at ‘44 on Palmyra’, situated close to popular, niche shopping centres such as Palmyra Junction – which includes a large Woolworths food store, and Belvedere Square, as well as Cavendish Square shopping centre and numerous restaurants.
The brand new, luxurious double-storey homes include three or four bedrooms, private gardens and individual pools, with appealing designs utilising modern lines with timber cladding and windows to frame the surrounding views. Providing the ideal lock-up-and-go lifestyle for the busy professional or family, the development is pet-friendly. The homes are priced from R4.35 million (including VAT).
Highly reputable schools such as Rondebosch, Rustenburg, Oakhurst, Westerford, Cedar House, Groote Schuur, Bishops, Claremont Primary and Livingstone High are within easy access while proximity to sports and medical facilities ensures the new development caters for a broad cross-section of home buyers. International sporting facilities such as Newlands cricket and rugby grounds, as well as Western Province Cricket Club and Villagers’ Rugby Club are in the nearby vicinity. In addition, private medical care is close by at the Life Claremont/Kingsbury hospital cluster.
Says Wener: “Everything you need is right on your doorstep, without compromising on privacy and exclusivity. Security has also been prioritised and environmental sensitivity maintained.
“The enclave of Lower Claremont, Palmyra and Lynfrae – located in Southern Suburbs to the east of Main Road, is enjoying strong demand from buyers seeking affordable homes in a convenient location. Well-priced properties sell quickly to the young career-minded, newly-married couples, young families and single parents, with property options a mix of solidly-built family homes, secure villages and some apartments.”
Adds Wener: “This is a community-minded neighbourhood with a number of play-parks for children, while plot sizes in the area are more than adequate for families with energetic youngsters.”