Areas and Places

The Atlantic Seaboard’s fairy tale success; Mouille Point

Mouille Point, Lew Geffen Sotheby's
The past decade has seen Mouille Point transformed from the poor relation on the Atlantic Seaboard to the Platinum Mile, a highly sought-after beachfront suburb.

A decade ago the beach road between Sea Point and the V&A Waterfront was lined with old, characterless apartment blocks interspersed with dated houses, but these days Mouille Point is transformed suburb, proudly ranking alongside it’s more illustrious Atlantic Seaboard neighbours.

Now referred to as the platinum mile, Mouille Point property comprises modern luxury apartments with spectacular ocean and mountain views, with purchase prices in the same league as Clifton and The Waterfront.

While it is still occasionally possible to find an apartment in the under R4 million range, most are now in the R6m to R10m bracket, with top-end prices breaching R100m.

Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, says: “In 2007 fewer than 10 apartments changed in Mouille Point hands and the average sale price was R1.76m”.

“By the end of 2016, the average apartment price had risen to R7.32m with Propstats records showing 42 sales for the year with the highest price achieved R35.25m on a property that spent just 30 days on the market.”

Geffen adds that the suburb’s upward trajectory shows no sign of abating despite the flat national economy.

“Since the beginning of 2017 there have already been 14 apartments sold in Mouille Point at an average price of R8.9m with an average listing time of just 39 days.”

Richard Todd, Sales Agent in the V&A Waterfront and Mouille Point for Lew Geffen Sotheby’s International Realty, says that not only have property values in the area spiked, the difference between asking and sale price has also reduced significantly.

“In 2010, the difference between the marketed price and eventual sale price was a respectable 10.9% but by 2016 this figure had dropped to 4.8% with the gap reducing even further this year to 2.9% in the first quarter”.

“Market data reveals that approximately 70 property transactions were recorded annually in the suburb over the past four years, with 2016 sales amounting to just less than R355m. About 90% these sales were below R10 million, and of the remaining 10%, three sales were properties priced above R20m.”

The price per square metre in the suburb has also risen steeply, says Todd, with the highest prices being for the ocean-facing properties on Beach Road, where homes in apartment blocks like Aquarius and Mouille Sands now cost around R74 000m² whilst other like South Seas command up to R87 549m².

Many are older blocks that have been spectacularly upgraded and renovated and several are newly built, offering buyers modern and luxurious lifestyles with unsurpassed views as well as close proximity to the CBD, Atlantic Seaboard beaches and the Waterfront.

Currently the most sought-after apartments are those at entry to mid-level, which are also the most difficult to come by as they are excellent investment properties for taking advantage of the active rental market in the area.

Last year the buyer demographic mirrored that of 2015, with around 85% of the buyers in Mouille Point being South African and predominantly from Gauteng. However, a noticeable trend shift is that an increasing number of foreign investors are from other African countries rather than hailing from Europe.

No longer a drab suburb en route to the Waterfront, Mouille Point now also boasts many world class eateries and the seafront has become a popular extension of the Sea Point Promenade that attracts walkers, cyclists and dog lovers to the lawns and paths that hug the coastline, as does the inviting green space that is the new Urban Park.

Geffen summarises: “Accessibility to myriad top class amenities, a conveniently central location and luxurious upmarket accommodation in a secure environment will ensure that apartments on this prestigious strip will always be high in demand”.

“The greenbelt of the urban park surrounding the Cape Town Stadium also adds substantial value to Mouille Point’s properties, because this land is unlikely to see development anytime soon. And the accessibility of being able to stroll across to the Golf Club on the green is also a distinct plus.”