Real Estate Investor Magazine South Africa March/April 2019 | Page 17

CAPE TOWN
Sectional Titles still King
‘According to Lightstone Property, the South African deeds
office recorded a 3.6% drop in the number of freehold
properties sold in the fourth quarter of 2018, and a substantial
8.1% increase in the number of sectional title units sold. This
reveals a considerable shift in the market away from freehold
titles and towards sectional title living. Often more affordable
than freehold properties, sectional titles also offer better
lock-up-and-go possibilities. With many placing increased
value on the ability to travel, and with many appealing new
sectional title developments emerging all over the country,
it is understandable why these kinds of homes are becoming
increasingly popular,’ Goslett explains.
Sustainable
Eco-Friendly
Housing 
‘The Western Cape’s water crisis last year shone a spotlight
onto sustainability and environmentally responsible ways of
living. For those less concerned about the effect they’re having
on the environment, the ever-rising cost of living and looming
threat of national electrical outages provide more prudent
reasons for why homes with self-sustainable features are likely
to become increasingly attractive in 2019,’ Goslett predicts.
Homes
with
Rental
or
Sharing
Potential 
‘Another trend which has been emerging is the growing
demand for homes that are able to accommodate beyond just
the nuclear family unit. With property prices shifting beyond
the reach of entry-level buyers and in favour of the middle-
income buyer, many are choosing to live with family members
or to sub-let rooms in order to cover the rent or the bond
repayment amounts. Two- or three-bedroom homes with en-
suite bathrooms and possibly separate entry points or garden
cottages should therefore do well in the 2019 market,’ Goslett
says.
‘We’re seeing huge interest by city workers anxious to
spend more time enjoying their spare time and less time
commuting,’ says Evolution Properties’ Germanis. And, with
Cape Town a tourist mecca of the country, short-term letting
is a great way to get a higher return on your investment. ‘Many
homeowners are going this route to make a profit and get
those bond repayments down,’ he says.  Vacation and rental
management company Totalstay  will provide a short-term
hospitality management offering at The Pinnacle, making it
even easier to rent out your apartment.
An overview: Estates and Developments
across the Western Cape
High prices in Cape Town will mean more first-time home
buyers will be looking in up-and-coming areas such as Salt
River, Woodstock and Observatory; further up the seaboard
into Blouberg; as well as the Durbanville and Kuils River
nodes.  
Val de Vie, Paarl
South Africa’s top residential estate, has seen record sales
over the past 12 months, with resale transactions in excess of
R885 million. This is a 61% increase from the previous year
when property resales of R549 million were concluded. With
developer sales of over R338 million for the past year, the
total sales for Val de Vie are over R1.2 billion over this period.
Val de Vie continues to perform well because of its diverse
portfolio of properties.
Salt, Salt River
SALT, a new mixed-use development which offers 184 one
and two-bedroomed apartments of 55.4sqm and 78.4sqm in
Salt River. Apartments are priced from R1.295m. There is
enormous interest in the Woodstock-Observatory-Salt River
areas, says Steven Holvec, Developments Manager for Seeff
Southern Suburbs.
An added benefit, buyers and investors should note that
the SALT development falls within the Urban Development
Zone which means that investors can take advantage of the
UDZ Tax incentives.
Yacht Club, Cape Town CBD
Early property investors who bought into The Yacht Club -
developed by the Amdec Group – enjoyed a significant return
on investment in the first year, and exceptional capital growth
in the two-year construction period.  The 170 apartment
development spanning 30 000m2 launched at R48 000/m2 in
September 2015, with the last units selling for R75 000/m2
just over one year later.  The success of The Yacht Club is a
positive indicator that mixed-use developments in the CBD
are in demand.  
 “Cape Town is booming, especially the foreshore area and
Roggebaai Canal precinct where the Yacht Club is located,”
says Amdec Property Group’s MD Nicholas Stopforth. 
The Pinnacle, CBD Cape Town
The Pinnacle offer 239 well-priced, spacious and secure
sectional-title apartments. Getting your foot on the property
ladder isn’t easy for first-time buyers. Lack of affordability,
appropriately sized stock and suitable locations are all barriers
to entry, with many people having to stay in the rental
market due to these challenges. Dawie Swart, CEO of asset-
management company Investicore, recognised these obstacles.
“For a long time, the first-time home-buyer market in Cape
Town hasn’t been easy to penetrate, and I wanted to change
that,” he says.
The Pinnacle building in the heart of Cape Town, a recent
Investicore purchase, will offer 239 well-priced apartments,
with 48 already sold off-plan in the first two months. 

Sea Point
We have been involved in the marketing of several
developments including The Glengariff and 169 on Main in
Sea Point.

Observatory and Stellenbosch
With tertiary institutions unable to meet the demand for
residences for their students, developments such as Obscourt
in Observatory and Da Vinci in Stellenbosch provide much-
needed accommodation with the amenities students and
young professionals seek. We have concluded more than 113
resales of apartments in Obscourt to the value of R150 million,
underlying the need for this kind of accommodation close to
public transport and other amenities. In Cape Town’s CBD
too there is a need for affordable accommodation, given that
there are 84 educational establishments in the central city.
Boland and Overberg
Cordoba
This magnificent wine farm between Stellenbosch and
Somerset West was sold by Pam Golding Properties’
established team of agricultural properties specialists.
Pearl Valley
With its breathtaking views and secure, luxury lifestyle, this
remains one of the most sought-after estates in the Cape
Town and Boland areas.
SA Real Estate Investor Magazine MARCH/APRIL 2019
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