Real Estate Investor Magazine South Africa April/May 2019 | Page 60

WEALTH
Even the super wealthy
tightening belts
Top end of market down by 50%, but
Cape still achieves highest prices.
GINA MEINTJIES
D
espite the notably slower market above R20 million,
the Cape continues to achieve the highest overall
prices in the country. Samuel Seeff, chairman of the
Seeff Property Group says that the economic downturn has
affected the various sectors of the property market in different
ways.
While the sub-R1.5 million (below R3 million in the
luxury areas) price band remains fairly active, there was a
notable slow-down in R20 million-plus value sales as buyers
take time out and wait and watch as things unfold in the
country, he says.
While this top end of the market is down by about 50%
from the highs of 2015-2017, Propstats data shows that in
Cape Town, just under R1.6bn in super luxury sales were
concluded last year, about R1bn thereof on the Atlantic
Seaboard alone. Seeff concluded 10 of the highest value sales
in Cape Town last year with a combined value of around R380
million, most to local buyers.
The three highest value sales concluded in Cape Town
include R80 million in Bantry Bay (sold by Seeff ), R62 million
in Constantia and R57 million in Clifton, R55 million in
Fresnaye (sold by Seeff ) and R41.5m in Mouille Point (joint
Seeff sale). Seeff also sold a vacant plot in Fresnaye for R28m.
Camps Bay experienced one of the slowest sales years in
recent times, it sold the highest volume of R20m-plus sales
with eight units and only managed a highest price of R33m.
In the country's financial powerhouse areas of Johannesburg
and Sandton, there were only just over a dozen high-value
sales in the top-end areas with a combined value of just over
R380 million. More than half of these were in Sandhurst,
although only with a highest price of R30m. The highest value
sales were recorded for Bryanston at around R33m to just over
R58m.
Most of the high value sales in Cape Town were cash deals
according to Ross Levin, Director for Seeff Atlantic Seaboard,
Waterfront and City Bowl. Only about a handful were to
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APRIL/MAY 2019 SA Real Estate Investor Magazine
foreign buyers such as two sales to UK buyers, being for R26m
in Bantry Bay (R26m) and R28m in Camps Bay/Bakoven.
While there is still demand for high-end homes in top
locations, buyers are now negotiating strongly. The upside, he
says, is that there has been a notable rise in new listings giving
buyers an excellent choice of stock. At the same time, sellers
are beginning to look at lower offers.
While there were no high-end sales recorded for
Bishopscourt, some seven units sold above R20 million in
Constantia Upper. James Lewis, MD for Seeff South Suburbs
and Hout Bay notes that here too, listings have risen notably
over the last two years, giving buyers a much broader choice
and allowing for more room to negotiate.
Additionally, Seeff also concluded three sales at the Kerzner
Estate in Leeukoppie at record prices of R30.5m to R37
million.
The highest prices achieved on the Atlantic
Seaboard include:
• Clifton – 5 sales, highest price of R57m for a house in
Kloof Road
• Bantry Bay – 5 sales, highest price of R80m for an
apartment (Seeff )
• Fresnaye – 4 sales, highest price of R55m for a house in De
Wet Road (Seeff )
• Camps Bay (incl. Bakoven) – 8 sales, highest price of
R33m for a house in Medburn Road
• Waterfront – 2 sales, highest price of R20m (Parergon)
and R26.5m (No 3 Silo)
• Mouille Point – 3 sales, highest price of R41.5m for a unit
in East West (joint Seeff sale)
• Llandudno – 3 sales, highest price of R57.5m