Real Estate Investor Magazine South Africa March/April 2019 | Page 16

COVER FEATURE
Parklands that have been developed to cater for the increased
demand in the area.
And then we have the showponies: Despite more subdued
trading conditions during the past two years, the average
selling prices of the Atlantic Seaboard’s top five suburbs,
which are incidentally also the top five suburbs in the country,
have surged past the R15m average selling price for a full title
house and is edging closer to the R20 million price mark.
Lance Cohen and Simony Santos, Seeff ’s luxury market
team for the Atlantic Seaboard note that while overall sales
have been slower since early last year, buyers have still paid
significantly for the right property. ‘We see for example that
full title sales in the R20m-plus sector for the 2017-year
exceeded R1bn at an average selling price of R32.5 million,
most of these coming from the Big Five suburbs and prices
ranging to over R100m in Clifton.’
Seeff ranked the top five suburbs according to the average
selling price (for a full title house) for the 2017-year based on a
mix of Propstats and Lightstone data. With all the anomalous
sales removed to give an accurate reflection the average selling
prices, these rank as:

1)      Clifton - R18m
2)      Llandudno - R17.8m
3)      Bantry Bay - R17.7m
4)      Camps Bay - R17.7m
5)      Fresnaye -R16.6m

Over 80% of sales were to local Cape buyers followed by
Joburg and foreign buyers who comprise only about 20% of all
sales. Llandudno were almost exclusively local buyers.
  According to the agents the notable price shifts evident
over the last five years have been driven by high demand
from local Cape buyers and from Joburg (and other wealthy
upcountry) buyers rather than foreigners. Joburg buyers have
invested over R500 million in top end Atlantic Seaboard
property over the last year. 
 The property trends we’re noticing
Younger buyers are opting for smaller homes because of cost
considerations as well as the reduced maintenance load. A trend
being seen in cities around the world is the emergence of the
micro-unit, between 20% to 30% smaller than a conventional
sized studio. This allows for a more affordable rental option
for those wanting to live close to work. In Cape Town’s CBD,
a micro-unit would be about 35m2 with a monthly rental of
between R8 530 and R9 749.
Micro-Living
‘The concept behind micro-living is creating a neighbourhood
within the building, and at The Pinnacle, we’ve done just that,’
says Swart. In this micro-community where like-minded
individuals live together in fully integrated social spaces.  
The micro-apartments offer cost-effective levies, and the
rates and bond repayments are manageable. What’s more, “At
The Pinnacle there are no transfer costs, which is a great help
to first-time purchasers,” says Emanuel Germanis, managing
director of Evolution Properties, which has the sole-mandate
to sell The Pinnacle.  
Lock-up-and-go Go Go Go
With more people downscaling for life choices, rather
than financial reasons, we are seeing a growing demand
for upmarket, lock-up-and-go living, while mixed-use
14
MARCH/APRIL 2019 SA Real Estate Investor Magazine
developments are proving increasingly popular. The new
Harbour Arch development offers a live-work-play lifestyle in
the upcoming Foreshore area, close to the V&A Waterfront,
where 418 of the units have already sold off-plan in phase
one. Located in prime position at the entrance to the V&A
Waterfront and the city centre, the 5.8-hectare precinct will
provide the largest selection of residential apartments in the
CBD, as well as landscaped public spaces, shops, restaurants,
international hotels, health clubs and office space. Apartment
sales in No 1 Harbour Arch, the first of the residential towers,
have passed the R1 billion mark, with over 96% already sold.
A fairly new trend is the development of boutique or
bespoke estates comprising of only a few homes, but offering
the same security and amenities as their larger counterparts.
Paardevlei in Somerset West, offers just six homes, starting at
R4.29 million. In Cape Town, we have seen several of these
bespoke developments in established suburbs such as Upper
Claremont and Constantia, where land for new developments
is at a premium. Brommaert Terrace in exclusive Constantia
Upper is a bespoke estate with six luxury homes, designed
with family living in mind and brought to market by Kingshill
Group, an established developer in the Southern Suburbs.
Two of the homes are already under offer, and the remaining
four are listed for from R13.95 million, including VAT.  A
10% deposit secures the home, with the balance payable on
completion of the project. 
Decentralisation
With growing congestion, as well as rising utility and
maintenance costs, more homeowners are looking for a lock-
up-and-go lifestyle close to work. We are seeing considerable
residential growth in emerging economic nodes where mixed-
use developments have created investment and employment
opportunities. Economic activity is being decentralized from
the traditional CBD in Cape Town, to other areas such
as Claremont, the Tyger Waterfront near Tygervalley and
Century City.
Buyers want well-located properties that reduce the daily
commute to work and school. Claremont, with its prime
location, has attracted more businesses to its CBD and is
home to more than 12 financial institutions, as an indication.
The Tyger Waterfront has grown into a vibrant economic
node with a 50/50 split of residential and commercial
properties. Popular with young professionals working at the
many corporate and financial headquarters nearby, as well as
students attending the Tygerberg campus of Stellenbosch
University, Tyger Waterfront’s rental sectional title units are
in high demand.
What are tenants and buyers looking for in
2019?
Housing trends are forever changing. While shaggy carpets
and pink porcelain bath tubs might have made a property
highly sought after in the 1960s, this kind of property would
be a tricky sell in 2019.   
‘Those who want to purchase real estate in the hopes of
flipping and reselling for a profit, or simply to generate a secure
stream of rental income, should keep an eye on current market-
related trends to ensure that the property they purchase will be
in high demand in the year ahead,’ explains Regional Director
and CEO of RE/MAX of Southern Africa, Adrian Goslett.  
To help buyers choose such a property, Goslett predicts
some of the trends that will come to dominate the 2019 real
estate market: