Freehold houses in the Cape Town City Bowl suburbs are "hot property and selling like hotcakes", and the demand is across all price bands.
This is according to Seeff freehold specialist agents, Michele Apperley and Colette Jackson, who say the demand is so high and the stock levels so tight that almost anything is selling - provided it is not overpriced.
Why are buyers choosing the City Bowl?
This two bedroom, two bathroom home for sale in Oranjezicht has wooden floors and high ceilings, as well as a large separate flatlet that can be reintegrated into the house. The property includes a double garage and is selling for R12.95 million - click here to view.The convenience and cosmopolitan lifestyle combined with the excellent capital value growth has made the area highly desirable, say the agents.
While the bulk of the demand is coming from local, mostly cash buyers, the area now appeals to buyers from across the globe.
“Aside from upcountry buyers from the greater Johannesburg area, we are now also seeing buyers from the Durban area looking to stake a claim in the City Bowl, often as it is seen as more affordable, yet close to and the same desirable address as the Atlantic Seaboard,” say the agents.
What are buyers spending?
“An analysis of the sales recorded on Propstats since the start of 2015 reveals that some 176 freehold properties worth R1.272 billion have been sold in the suburbs that stretch from the Bo-Kaap to Zonnebloem/District Six,” say the agents.
They say the average freehold sales price for the period is R7.228 million, compared to R5.47 million in 2014. “That is a phenomenal R1.758 million and 32% more.”
This three bedroom, two bathroom Victorian home in Gardens has a swimming pool, covered patio, three fireplaces, staff suite and a single garage. It is on sale for R6.45 million - click here to view.A closer look at the activity for the suburbs shows that just over 60% of sales of freehold houses for the period January 2014 to end of April 2016 were above the R5 million price mark. Sales in the R10 million-plus price band comprised 20% of all sales.
It is still a good time for sellers - almost across the board, say the agents. “Anything upwards of a smaller home in Gardens, priced around R3.5 million, ranging to a luxury home in Oranjezicht or Higgovale in the R10 million-plus range is in demand.
“A key trend is the notable uptick in luxury sales since December, with almost half of the 39 sales above the R10 million price band concluded during this period.”
Prices set to go up
There is now almost no land available in the City Bowl, something that Apperley and Jackson say has contributed to the growth in the property values over the last few years.
By way of illustration, only two vacant plots sales have been recorded since the start of 2015, both in Higgovale. The first, a 635sqm plot sold for R5.2 million, and the second a 1 951sqm vacant plot sold for R10 million.
This four bedroom, two bathroom Victorian home for sale in Oranjezicht still has its original pressed ceilings, floor tiles and wide-strip Oregon floors. The home has two fireplaces and private garden and patio. It is selling for R5.95 million - click here to view.Oranjezicht
“Oranjezicht is the leader in terms of the highest volume of freehold houses sold, with some 47 units sold to the combined value of R405.59 million at an average price of R8.63m, almost R1 million more compared to 2014 when it was around R7.7 million,” say the agents.
“Most notably, the average time that properties have spent on the market is just six weeks.”
The highest prices achieved in the City Bowl over the period are also in Oranjezicht at R23 million on Chesterfield Road and R18 million on Belvedere Avenue.
The second highest number of freehold house sales were in Vredehoek, with some 34 units sold to the total value of R154.72 million at an average price of R4.55 million. This is 23%, or an outstanding R850 000 more than the 2014 average price of R3.7 million, say the agents.
Just over one third of all sales in Vredehoek were above R5 million, ranging to a highest price of R9.35 million in Exner Avenue and R10.1 million in Frank Avenue.
This four bedroom, two bathroom home in Gardens has a pool and entertainment area, as well as off-street parking for three cars. It on sale for R10.9 million - click here to view.Next is Tamboerskloof, with 28 freehold sales worth R235.255 million at an average price of R8.4 million, 52% more than in 2014 when the average was just R5.54 million, say the agents.
Ten of the sales were above the R10 million price band, ranging to the highest prices of R15.65 million in Kenmore Road, R16.25 million in Leeukloof Drive and R18 million in Brownlow Road.
Higgovale
“Some 24 freehold properties were sold in Higgovale to the combined value of R298 million at an average price of R12.4 million, up by a phenomenal R2.4m - or 24% - from R10 million in 2014,” say the agents.
“This year’s average sales price is standing even higher at R14.8 million, largely as a result of higher value sales recorded since the start of 2016.”
67% of the recorded sales fall above the R10 million price band, with the highest prices achieved on Higgo Road at R18.1 million and R16.5 million respectively. Glen Crescent also achieved two top-end sales at R17.5 million and R15 million respectively, while a home in Glencoe Avenue sold for R17 million.
This six bedroom, five bathroom home is situated in the Highlands Estate in Vredehoek. The home has expansive entertainment areas offering unobstructed mountain and city views. It has a swimming pool and garaging for four cars, and is on sale for R12.9 million - click here to view.“In the exclusive St John’s Estate, top-end prices reached during the period of 2015 to date include R14.5 million, R18 million and a highest price of R19.5 million,” say the agents.
“The highest all-time price reached in the City Bowl is also in this very sought-after estate at R34 million, paid in late 2013.”
Gardens
In the mid-market suburb of Gardens, some 22 freehold properties sold to the total value of R115.77 million at an average sales price of R5.2 million, a notable R1.8 million - and 53% - higher than the 2014 average of just R3.4 million.
Apperley and Jackson further point out that almost half of all sales were above the R5 million price mark, ranging to R10 million in Hofmeyer Street and R14.8 million in Rosmead Avenue.
Zonnebloem/District Six
This two bedroom en suite townhouse on the market in Tamboerskloof has a covered patio with built-in braai and single garage with direct access. It is on sale for R5.95 million - click here to view.The remainder of the freehold sales were in Zonnebloem/District Six, with seven sales worth R13.56 million at an average price of R1.9 million, up by 19% from 2014 when it was R1.6 million, and a highest price of R3.45 million in Garrick Road.
Devil’s Peak
The agents say only two freehold sales were recorded for Devil’s Peak at an average price of R3 million - the only average to come down from 2014 when it was R4.3 million.
“On the whole, the City Bowl property market remains very active and, contrary to the economic trend, it is still a good time to sell in the area,” say Apperley and Jackson.
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