Sectional title property now makes up seven out of every ten sales across the Atlantic Seaboard and City Bowl areas and this sector of the market continues to see strong demand for new developments according to Paul French, commercial director for the Coastal Property Group (Coastal).
“In the 23 years that we have operated here, we have seen this sector expand exponentially as more and more people look to buy or rent in the areas. Consequently, about 70% of all properties sold this year, are sectional title. The latest Propstats data shows that well over 800 sectional title properties worth more than R3.5bn have changed hands this year”.
French goes on to say that the limited land space necessitates this rise and some areas are now dominated by sectional title property – the CBD, De Waterkant, Mouille Point, Three Anchor Bay and Granger Bay and about half of Sea Point and Green Point for example.
“Sea Point has been the busiest with over 200 sales at an average price of around R3.66m, followed by Green Point with 80 sales at R3.227m and Mouille Point with 50 sales at R5.876m. The CBD dominates the City Bowl area with over 160 sales at R2.4m on average”.
Sectional titles are now often the preferred home choice given the excellent security and easy lifestyle, says French.The choice is also wide, from older studios, priced from just over R1m in Sea Point to new luxury seaside apartments in Mouille Point and Bantry Bay, priced to well over R100 million.
“The rise in demand has boosted development with new additions tending to sell out quite quickly. Exciting newcomers include a number of bespoke developments by Blok, from Fresnaye to Green Point and Vredehoek and Aurum in Bantry Bay, billed as the most luxurious addition to our Atlantic Seaboard management portfolio”, says French.
The Aurum development launched in mid-2016 and offers a mix of presidential and luxury residences with private pools and imported finishes by designers such as Armani and is priced up to around R130m. The development is also redefining the role of managing agents.
French says that the Coastal Property Group will extend their traditional services to include 24-hour security, valet parking and a concierge service to add to the five-star lifestyle on offer in the development.
“An efficient managing agent has become critical for this growing sector”, he adds.“Considering that buyers are now investing millions into sectional title property, knowing that your property is in expert hands, is an added attraction”.