With billions invested in new developments, downtown Cape Town is turning into a mini-Manhattan.
“The Waterfront and Foreshore precincts are currently the most exciting residential markets to invest in,” says Ross Levin, Finella Botes and Lynn Pinn, Seeff’s team for the areas.
“In just five years, the V&A Marina yielded sales worth R2.03 billion, at an average price of R10.464 million.”
While most property markets are down, the Waterfront has experienced sales growth of about 6% this year, and Levin says property values have practically doubled in the five years since 2011.
He says in 2011 a two bedroom apartment in Juliette on the canal sold for R7 million at R40 230 per square metre. The same apartment recently sold for R13 million at R76 471 per square metre, thus equating to some 86% growth in just five years, and yielding a handsome profit of R6 million.
“On the Front Yacht Basin (FYB), a two bedroom apartment in Penrith sold five years ago for R11.4 million (R45 418 per square metre). The same apartment sold last year for R19 million (R87 156 per square metre), yielding 67% growth and a profit of some R7.6 million in just five years,” says Levin.
The entry-level price for the Waterfront is now between R7 million and R9 million, and on a rate per square metre, apartments now sell for around R84 020 per square metre on average, ranging to R140 000 per square metre at the top end.
Canal apartments now command around R75 000 per square metre for one bedroom and R85 000 per square metre for two bedrooms. FYB apartments sell for up to R140 000 per square metre depending on the apartment and position.
”Demand in the R10 million to R20 million price band has picked up in the third quarter as we head into the busier summer months,” says Levin.
“The overall average listing period is also down from 39 days in the second quarter to about a month (33 days), while the overall days on the market is down from 124 in 2014 to just 48 days on average this year.”
The highest demand for canal-facing apartments is in the R8 million to R12 million range, and in the R15 million R25 million range for FYB apartments.
At the neighbouring Silo Precinct, development is now nearing completion, and demand for residential apartments is picking up notably, say the agents.
The Zeitz Museum of Contemporary Art Africa (Zeitz MOCCA), a historic first for the African continent, is set to open in 2017, as will the first Radisson Red Hotel and a luxury, 28-room hotel by renowned hotelier, Liz Biden of the Royal Portfolio.
“All of this will attract tens of thousands of people to the area and, of course, with that demand for residential apartments. There are several Silo residential developments under construction. The completed Silo two now commands around R70 000 to R98 000 per square metre for one and two bedroom units,” says Levin.
The adjacent Foreshore area, already home to high-demand residential complexes such as Canal Quays and Harbour Bridge, is soon to be home to the new The Yacht Club that will open the area to the harbour.
“This is one of the most exciting developments in the area. Add to that the upgrade to major landmarks such as the Cape Town International Convention Centre (CTICC) and Artscape Theatre, the addition of a flagship Virgin Active Gymnasium and a high concentration of luxury hotels, and you can see why we regard this whole area as one to watch,” say the agents.
Although on the fringes of the CBD, the Foreshore already boasts a higher average sales price of around R3.3 million, compared to the CBD’s average of around R2.3 million. The premium here, say the agents, is attributable to the close proximity to the Waterfront.
This two bedroom, two bathroom home is set in the heart of the Waterfront Marina, has an undercover patio and is currently on the market for R12.995 million - click here to view.
Apartment prices on the Foreshore range from around R3.3 million for a one bedroom unit, and upwards of R4.2 million for a two bedroom unit.
Adding to the attraction of the area is the close proximity to the fast-developing financial and legal district, now home to several high-profile brand names such as Bowman Gilfillan, Cliff Dekker Hofmeyr, Investec, First Rand and Edward Nathan Sonnenbergs.
“Aside from the V&A Waterfront with its five-star shopping, leisure and dining right on the doorstep, you are just minutes from De Waterkant, Gardens and the high streets of Green Point and Sea Point for shopping, services and a host of hot eateries and hangouts. The Blue-Flag beaches of the Atlantic Seaboard, Camps Bay and Clifton are also mere minutes away,” say the agents.
“Globally, waterfront property tends to not only hold values, but produce capital growth at a faster pace compared to surrounding real estate, a trend that we have seen at the Waterfront.”
Already, a recent Lightstone Report named the Waterfront’s Dock Road as the most expensive real estate in the country, commanding an average sales price last year of R108 000 per square metre.
“Downtown apartments are also hot investments for the rental market,” says Dinis Martins, Seeff’s COO for the Atlantic Seaboard and City Bowl.
“At the Foreshore, a two bedroom apartment can now command a monthly rental of around R18 000 to R20 000 per month, and significantly higher at the Waterfront - ranging to as much R45 000 to R55 000, depending on the unit, location and time of year.”
The summer rates for the Silos are around R38 000 to R40 000 per month for one and two bedroom units.