Sellers of entry level properties across the Atlantic Seaboard and City Bowl suburbs are still cashing in on strong demand with prices doubling in under five years. A two-bedroomed flat on the Atlantic Seaboard now sells for about R2.3m on average (Sea Point and Green Point) and about R2m in the City Bowl according to Ms Billy Rautenbach, Seeff’s sales director for the areas.
“A modest, entry-level full title house now sells for around R4 in the City Bowl and R6m on the Atlantic Seaboard, but these are now rare as the lower price ranges are snapped up quite quickly as buyers want to get into the areas while they still can. It is now a case of buy it if you see it, otherwise it will be gone in no time”, says Ms Rautenbach.
The City Bowl now boasts an average selling price of R5.9m for full title and R2.5m for sectional title, almost twice as much as the respective averages of R3.3m and R1.4m in 2012, just four years ago.
Just four years ago (2012), some 35% of all sales were below R1m and only 16% above R2m. Now, there is basically nothing below R1m and 70% of sectional title sales fall above R2m.
Bernice Musikanth, sectional title specialist says you can still find the odd City Bowl studio for R1.1m and a one-bedroomed flat for R1.6m, but two-bedroomed units now sell for R1.9m-plus and significantly more in new developments.
Agents JP Ricketts, Alan Screen and Warren Emett, say that a two-bedroomed flat now ranges from around R2.3m, save for a few great buys still in complexes such as Perspectives (R1.795m), Cannon Gardens (R1.9m) and The Square (R1.95m) in the CBD and in Disa Park (R2m) and Santorini (R2.1m) in the City Bowl.
Craig Watchurst says that rentals are following suit. An unfurnished two-bedroomed flat now rents out for R12,000/month and R16,000/month if furnished. A mid-sized unfurnished house costs around R18,000/month and R25,000/month if furnished.
“The picture is similar for full title property”, says Ms Rautenbach. “Over 40% of this year’s City Bowl sales are above R5m and almost 20% above R10m, half of which are above R15m. This is a stark contrast from 2012 when less than 20% sold above R5m”.
“On the Atlantic Seaboard, you can still find a two-bedroomed flat in Sea Point or Green Point for around R2.3m” according to Hilary Biccari and Bryan Ginsburg, but other areas are now significantly higher.
“In Camps Bay, a two-bedroomed sectional title property starts at around R5.5m”, says Rochelle Serman and Lyn Pope. A modest entry level full title house, now sells for around R8m-R9.5m. Kasia Watchurst, says that although you can still find a modest two-bedroomed flat on the Atlantic Seaboard for R14,000/month, most units go for upwards of R20,000-R35,000/month.