Friday, December 14

Seaboard’s growth spurt tapers off

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The Atlantic Seaboard has experienced “a cooling period” after drastic growth over recent years

The Atlantic Seaboard has experienced “a cooling period” after drastic growth over recent years but still commands some of the most expensive real estate in the country. 

And, while traditionally Camps Bay was the most active property investment location on this strip of coastline, there is a definite broadening of interest in locations surrounding it such as Bakoven, Fresnaye, Bantry Bay and Clifton, says John McDermott, luxury property specialist at Harcourts Atlantic seaboard. 

Read: Mouille Point’s meteoric rise over 10 years

Analysing deeds data from April last year to March this year, McDermott says it was expected that the growth spurt experienced by sectional and full-title property prices along the Atlantic seaboard would have cooled down, and it has.

He attributes the slight slowdown to macro-economic factors, consumer confidence, buyer sentiment and Cape Town’s water crisis.

Pam Golding Properties says house prices throughout the Atlantic seaboard appreciated by an average of 23.4% from levels during the first three quarters of last year, making it the top performing area in the Cape metro housing market.

The agency agrees that there has been a natural slowdown after the considerable highs of previous years, but adds that the area remains one of the most sought-after property markets.

In spite of cyclical trends, McDermott believes Camps Bay and surrounds will always be a good property investment location. Mouille Point’s diverse property landscape is also worth considering, says Lew Geffen, chairperson of Lew Geffen Sotheby’s International Realty.

He says the majority of their local buyers in the area are empty nesters downscaling once the kids have left home, and established professionals who prefer the low maintenance lifestyle of apartment living.

Mouille Point also appeals to investment buyers who are attracted by a strong rental market which consistently yields high returns for long and short-term lets.

Pam Golding Properties says Mouille Point has shown considerable growth with a 55.1% appreciation in the median prices of apartments over the past five years. 

Did you know? 

* At least six Mouille Point
apartments sold last year within a day of being listed. The national average is 17 weeks, two days, as estimated by the FNB Estate Agent Survey for the fourth quarter of 2017. – PGP 

*Th strong performance of the Cape’s housing market in general is partly due to the influx of older, more affluent homeowners from across the country. – Pam Golding Properties (PGP). 

*Properties within 500m of the sea are proving so attractive to buyers that they outperformed other property markets by nearly 3% during the first seven months of last year. – Lightstone data as quoted by PGP

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