Contrary to expectation, the Covid-19 pandemic has boosted the sale of trophy homes valued for over R20 million to well over R100 million across Cape Town.
Seeff Property Group has reported that 160 properties have sold over R20 million in the last two years. More than half of those have sold in 2022, generating nearly R3 billion in value, and there are still a few months to go.
8 of the last 8 trophy home sales on the Atlantic Seaboard were to buyers from Gauteng. There has also been a notable increase in international buyers with sales this year to buyers from Germany, the UK, US, Switzerland, Finland, France, and Austria.
This is testimony to Cape Town’s growing international acclaim as a destination of choice for buyers including semigration and international buyers, says Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl. The increase in direct flights into Cape Town will no doubt further boost interest in property in the City which is good for the local economy.
According to New World Wealth, the highest number of trophy homes are located in Cape Town which also achieves the highest prices on average. Seeff recently concluded yet another high-value sale of R72 million in Bantry Bay. The 398sqm apartment in the swanky “The Aurum” was sold by Adrian Mauerberger and Bryan Ginsburg, luxury sectional title agents with Seeff Atlantic Seaboard, achieving a new record rate per square metre of R180 905/sqm.
Clifton only reached the highest rate of R165 468 per square metre in March. The previous highest in Bantry Bay was R135 731/sqm which was paid in April 2019, and R111 111/sqm at the Waterfront which was paid in May 2019.
80% of the trophy home sales concluded in Cape Town are in the suburbs of the Atlantic Seaboard, especially in Camps Bay, Clifton, Bantry Bay, Fresnaye, and the Waterfront.
Ten sales were also concluded in Oranjezicht and Higgovale in the City Bowl. In Tamboerskloof, Seeff sold eight high-value properties in “The Ridge Estate” which have reached record prices of over R16 million for vacant land. Homes valued at over R50 million are under construction.
Trophy homes valued at over R20 million have also sold like hotcakes in Constantia and Bishopscourt. According to Francois Venter, luxury market specialist for Seeff Southern Suburbs, the market for luxury homes across the “Uppers” areas remains highly active.
In Constantia, 35 homes valued at over R20 million have sold since the start of 2021 while Bishopscourt clocked up eight high-value sales priced above R20 million.
“The Cape Town market is set to heat up further as we head into the busy summer period when international and semigration buyer enquiries tend to pick up,” says Levin. He also expects that the Cape Town market should be able to withstand some of the economic pressures a little better compared to the rest of the country.
Apart from the R72 million sale for an apartment in Bantry Bay to a German buyer, further sales concluded by Seeff on the Atlantic Seaboard include a unit in The Bantry for R22.6 million to a Swiss buyer in a joint sale.
Also, a high-value apartment was sold for R50 million at The Waterfront to an Austrian buyer, a unit at The Waterclub in Granger Bay for R24 million to a German buyer and a unit in Aquarius in Mouille Point sold was for R21.7 million to a local cash buyer in a joint sale.
House sales include two sales in Camps Bay for R23.995 million, and R23.9 million to buyers from the USA and UK respectively as well as two sales in Fresnaye for R43.5 million and R23 million, both to local Cape buyers.
Seeff also concluded three trophy home sales in Constantia for R30.75 million, R26 million and R39 million, and a sale of R39 million in Bishopscourt, all to local Cape buyers.
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