A recent study by Lightstone Property Solutions revealed that sellers of property within the Atlantic Seaboard area have achieved an average of between 17% and 19% return on their investments over a 7-year holding period. According to Brendon Levin of Nexus Property Group (NPG), the Atlantic Seaboard the Atlantic Seaboard is considered the most sought-after property location in the country, and as a result the area continues to attract property developers looking to take advantage of the increased demand for luxury accommodation in Cape Town.
“The Atlantic Seaboard is currently experiencing significant urban regeneration with numerous buildings being demolished and renovated. New developments are being built whilst public amenities such as public transport, bike paths, recreational and park facilities have also seen major improvements, making it one of Cape Town’s most desired neighbourhoods.”
He points to two properties that NPG recently sold in the Atlantic Seaboard area as proof of the increasing demand.
Three Anchor Bay
One of the properties, which came on to the market for the first time in over two decades, included a large tenanted block of flats in Three Anchor Bay, an area which has not seen as much improvement as the Queens Road side of Sea Point. The block was offered for sale via a private treaty tender which attracted a wide spectrum of buyers. Through its national network, NPG was able to secure the most favourable offer for the seller.
Situated on Main Road, bordering Green Point, the building is comprised of 20 apartments, one retail store and nine garages, as well as further off-street parking and storage facilities.
Whilst Main Road is currently in the process of being upgraded, most renovations have taken place towards Sea Point towards Victoria Road leading to Clifton, however, high demand has prompted redevelopment of otherwise less desirable parts of Sea Point.
Another property which was brokered by the Group includes the sale of a free-standing property in Seacliffe Road Bantry Bay, just metres from the beachfront promenade, in an area which is dominated by large blocks and sectional title units. The redevelopment of the property from a guest house to an apartment block is set to enhance the property’s value in a competitive market.
At the time of sale, the property was being run as a guest house. Due to the high demand for unique property in the area, an auction was suggested as the method of sale. As a result of the competitive nature of this mechanism, the seller was able to capitalise on the demand in the area, ensuring maximum value is realised for the asset.
Parties who expressed interest in the matter realised the unutilised potential of the guest house and how a restructure of the site and change of usage would be a key method to unlocking its value in order to take advantage of the various possibilities it offers.
The eventual buyer was able to pay the price knowing that there was value to be unlocked after redevelopment. The property is currently being converted, with the existing structure being remodelled into three luxury apartments including two duplex units with off-street parking.