When estate agents say “location, location, location”, while clichéd, this is definitely still a truth in many instances, particularly when talking about the property market in Sea Point, says Nelio Mendes, marketing manager at estate agency SAProperty.com.
Sea Point’s property market comprises only 12,21% in freehold property and the remainder is sectional title. The median price of freehold property, according to a recent Lightstone report is listed for the current year (2017) as R5,5 million and sectional title property has a median value of R3,25 million (these figures are likely to rise and are just an indicator at present as this is only for the first six months of the current year). The median price for sectional title property in 2012 was R1,4 million, and freehold property was R3,15 million. Looking at the sales figures from June 2016 to May 2017, the average freehold price is listed as R6,876 million and sectional title R3,573 million.
“The sectional title market has done incredibly well in Sea Point,” says Mendes. “If you bought a unit in 2012, you could possibly have achieved over 100% growth in value in five years.”
Lightstone figures indicate that most recent buyers of property here have been in the middle-aged and mature age groups, and there is an interesting trend – that 40% of the recent sellers have been in the pensioner age group, which could be an indicator that this area is well suited to a younger market, says Mendes.
“This suburb’s central location is one of its key selling points”, he says, “with Cape Town’s CBD just a few minutes to the east and easy access to major highways both south and northbound. It is the only suburb of Cape Town that has significant high-rise development, however, and this has made it popular for investors as well as owner-occupiers”.
“A recent SAProperty.com sale was a prime example of the above”, says Mendes. “The 127m² two bedroom apartment was sold within one week of being put on the market, at the full asking price of R6,2 million, and there were four potential buyers bidding on the property in that time”.
The majority of buyers looking at this type of property currently seems to be from Johannesburg with some from other parts of South Africa, he says.
Sea Point has much to offer residents in addition to easy access to the sea as well as sea and mountain views: it has many retail centres with major chain stores as well as boutique retailers. There is a glut of restaurants, cafés, bistros and coffee shops. On any given day one will see residents enjoying the walking and cycling paths (where one can hire a bicycle by the hour) along the promenade, the outdoor exercise areas, and the Sea Point Pavilion swimming pool. There is a constant hustle and bustle, with many shopping and entertainment options available in the immediate vicinity as well as surrounding areas. An additional advantage, one used by many of the locals as well as tourists, is the MyCiti bus service, which runs along the main road right through the suburb and links with the city and Atlantic Seaboard routes.
Schools in the area include Sea Point Primary School and Sea Point High School (formerly Sea Point Boys’ High School) and Herzlia Weizmann Primary. The French School of Cape Town opened on 14 October 2014 and there is a Reddam campus in neighbouring Green Point. The German International School of Cape Town is approximately 15 minutes away.
“One can understand why the property market is buzzing with activity and that there is huge demand for units in this area,” said Mendes.