Properties bought off plan in new residential developments in Century City in recent years have shown capital appreciation of between 20 to 35 percent by the time purchasers have taken transfer 18 months later.
Brian Usher, Sales Director of Property World, the on-site agents for Rabie’s residential developments, says in recent years this level of capital appreciation had been seen almost across the board, particularly for those developments which had sold out within days or weeks of being launched.
He said the capital appreciation enjoyed by Century City properties was due to demand continuing to outstrip supply.
“The demand in turn is driven by the high quality of the developments and the unrivaled Century City environment offering an enviable quality of life with every conceivable amenity in easy walking distance.”
Usher said that in the Matrix, one of Rabie’s most recent residential developments where owners recently took transfer, a one bedroom apartment had been resold for R2 680 000 reflecting a capital appreciation of 36% over 16 months. This equated to a sales price of R47 000 per square metre, a record for the Century City precinct.
Also recently completed is Mayfair where the first few resales have taken place at prices on average more than 35% higher than what they were originally purchased for off plan in 2014.
At Rabie’s Quayside development where owners took transfer in 2014, resale prices were reflecting an average capital appreciation of 47% for one bedroom units and 36% and 28% respectively for two and three bedroom apartments.
Similar appreciation has been seen at the neighbouring Quaynorth development, which also came on stream in 2014, with apartments achieving around 37 percent more than initial selling prices.
The first residential project undertaken by Rabie at Century City was the Island Club which came on stream in 2005/2006. The average purchase price of a one bedroom unit then was R546 086 with resales now fetching an average price of R1 550 000 – a capital appreciation of over 180% over a period of 10 years. A similar capital appreciation has been enjoyed by two and three bedroom apartments in the same development with units in the first phase showing the highest appreciation.
Usher said an iconic new development was on the drawing board in the Bridgeways precinct which is also home to the R1billion Century City Square development which comprises offices, apartments, restaurants, an hotel and a 1200 seat conference centre set around a public square and situated over a super basement parking garage.