Around 70% of all property sales in Sea Point are now sectional title homes, with strong ongoing demand spurring new developments in the area. This is according to Simony Dos Santos, area specialist for Lew Geffen Sotheby’s International Realty on the Atlantic seaboard.
“A dearth of available land for further development has resulted in rampant densification in recent years and some areas are now dominated by sectional title property, including De Waterkant, Mouille Point, Three Anchor Bay, Granger Bay and about half of Sea Point and Green Point.”
She says many buyers now prefer sectional title homes, given the excellent security and convenient lifestyle they offer. The available choice is also wide, from older studios priced from just over R1.6 million in Sea Point to newer or recently renovated luxury seaside apartments in the R15m plus price band.
“There are currently a number of new developments going up in Sea Point and other areas of the Atlantic seaboard. Most of them are on land where older single buildings have been demolished to make way for these high-rise blocks,” says Dos Santos.
“There are also a few developments that have been completed or almost completed and where there are still one or two units for sale.”
She says the entry level price for properties in Sea Point is around R2m, with very little stock below that price.
“There is a huge demand for three-bedroom units at the moment, and there’s a shortage of stock in the R4m to R6m price range. However, across the board, the main shortage is in buyers at the moment,” says Dos Santos.
“The Atlantic seaboard has always been a very mixed market, with local and foreign buyers and sellers in all age groups and this hasn’t changed in the past few years. Most of the buyers at the moment are still South Africans, although we have already starting to get foreign enquires even though the summer season has not yet started.
“The price bands between R4m and R9m are currently selling faster than other sectors, but any properties that are correctly priced are still selling well. The units that are overpriced are the ones that are sitting on the market for months.”
According to Propstats, the average price for sectional title units in Sea Point is R3.4m, and some units are still realising the listing price.
Lightstone statistics for home owners show that 47% have owned their homes for 11 years or more, and 27% for less than five years. Among recent sellers, 38% have owned their homes for less than five years, and 31% for more than 11 years.
Of the stable home owners, 32% are in the 50 to 64 age group, 35% are 36 to 49, 22% are 18 to 35 years old, and 11% are over 65. Among recent buyers, 36% are 50 to 64 years old, 33% are middle aged (36 to 49), 18% are 18 to 35 years old, and 12% are over 65.
Pensioners (65 plus) are the biggest group of sellers (36%), 31% are 36 to 49, 25% are 50 to 64 and just 7% are in the 18 to 35 age group.
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says: “These statistics confirm the fact that Sea Point offers a wide range of properties to a broadly mixed market to suit all need and budgets. Buyers are also attracted by the easily accessed world class amenities, with the V&A Waterfront just a short ride away on the MyCiti bus”.
He says that although many areas did experience house price deflation during the last recession, he doesn’t foresee this happening in Sea Point and other Atlantic seaboard suburbs.
“During the 2008/9 recession prices here still continued to increase by about 8% a year, and I believe the same will happen this time,” says Geffen. “There is no doubt that investing in property in this area offers excellent returns in the long term.”