“Over the past eighteen months Real estate companies across the peninsula have reported increases in the average selling prices of all properties, including free-standing residential, sectional title and commercial real estate. The effect of the increases is starting to filter through to investors and we’re starting to see a return of confidence in property as a viable investment,” says Mike Greeff, CEO of Greeff Properties, an exclusive Affiliate of Christie’s International Real Estate.
“The most significant price increases are reflected in the sales figures of homes in security Estates,” says Greeff. adding that statistics show that buying a home directly from the developer at the inception of a project is likely to yield decent returns, based firstly on the initial saving of transfer duty, and secondly on the fact that as soon as sales increase, high demand pushes prices up.
Examples of this trend include: Steenberg Golf Estate where homes currently selling at R9.5 to R10 million were initially sold at R2 million in 1997; In Silvertree Estate, houses which initially sold for R2 million in 2004 are now fetching R5.5 to R6 million; In 2009, there were homes in Stonehurst, which sold for R4 million – the current selling price for these properties is R6 million; Homes, which sold for R1.6 million in 2009 in Stone Village, are now priced at R3 million; More recently at Nieuwe Steenberg, where starting prices for certain units in 2011 were R4 million, those units are now valued at R5.6 million, however, none are available for sale.
“Based on these statistics, the new Chapman’s Bay Estate in Noordhoek is a perfect opportunity for investors to get in at ground level as seven phases are planned. And with phase three soon to be launched after the virtual sellout of phases one and two, investor confidence in the estate is proving to be significant,” says Mark Tame of Percipient, the developer of Chapman’s Bay Estate, in conjunction with Kaikoura Capital.
Tame adds that the interest in Chapman’s Bay Estate is also due to reasonable pricing, particularly when compared to surrounding properties and security estates within a 10 to 15 km radius. Courtyard homes are priced from R2.891 million, Wetland homes from R3.650 million and Avenue homes from R3.895 million.
This top-end product has attracted a number of investors including quality construction specialists PDP (Property Development Projects) and Flagstone Development Projects.
Says Magnus McDowall of Flagstone Property Development, “The desire for a carefree and safer lifestyle in an environment perfect for children to enjoy healthy outdoor playing time and for all residents to enjoy a stress-free existence in a secure environment, is creating strong purchaser demand. This coupled with a diminished supply of new secure estate offerings means that demand is outstripping supply, not only increasing the speed at which these properties sell, but ensuring that purchasers are prepared to pay a premium and rentals remain strong for those investing.”
“Chapman’s Bay Estate ticks all the boxes for a security estate but its location, concept and design render it utterly unique … it neighbours a nature reserve, the landscaping is designed to complement and sustain the current ecosystem and the views are simply spectacular,” says sub-contractor Pete Jordan of Property Development Projects, adding that the location offers the best of both worlds in that it is only a 40 minute drive from Cape Town.