Insights

High-end homes on the Atlantic Seaboard continue to attract buyers

With its enviable lifestyle offering – pristine beaches and cosmopolitan vibe – the Atlantic Seaboard is holding steady in an unsettled market, with three high-value sales in the past month, says Pam Golding Properties.

One of these properties, for a new development in Clifton, sold at the full asking price of R30 million. “This is a remarkable achievement at a time when many sales are being concluded at below asking price,” says Annette Hepburn, Pam Golding Properties agent for Clifton. The three-bedroom apartment in Clifton Terraces includes a 24-hour concierge service and private parking – a sought-after commodity in this area – making it the ideal lock-up-and-go investment.

The FNB Property Barometer for July reports a slowdown in activity across all price segments, which was to be expected following April and May when Level-5 lockdown restrictions were in force. Although prices vary among areas and regions, property values across the country have dropped, especially in the middle to upper segments of the market. According to the Pam Golding Property Index for May, the upper price band – homes of more than R3 million – was the weakest performer nationally during this period, with a price deflation of 5.8%. However, this price contraction was smaller in the Western Cape, and Cape Town’s house price inflation, at 4.1%, is well above the national average of 2.6%.

The sale this month of a V&A Waterfront apartment for R41.4 million VAT inclusive shows that there is still a demand for luxury accommodation close to the city centre and the Foreshore. “Offering security and convenient access to a variety of restaurants and other attractions, these apartments offer similar living to larger, luxury estates,” says Mariël Burger, Pam Golding Properties agent for Mouille Point, Waterfront and Foreshore. “The lockdown has resulted in many buyers wanting a home within a safe environment that offers controlled access, making it easier to implement entry health checks if needed, with opportunities to shop, socialise and be outdoors on one’s doorstep. Buyers are willing to pay premium prices for the quality of life they desire.”

A three-bedroom apartment in the Pinmore, one of the most exclusive apartment blocks in the V&A Waterfront, sold within one week of the price being adjusted to R45 million. Says Paul Levy, Pam Golding Properties agent for the Waterfront, “We are finding that there is still an appetite for property at this end of the market, especially if offered at market-related prices.”

The current lending climate, with record-low interest rates, has created the ideal opportunity to invest in property, adds Burger. “For many, this is the perfect time to invest in a luxury home. It’s certainly advisable to consult with a property agent who will offer informed advice about the current market, especially when there is uncertainty about how long it will take for it to recover from the economic fall-out of the pandemic.” He adds: “These recent sales show that buyers with a long-term view still see the value of a high-end property investment.”

Posted by The Know - Pam Golding Properties