Here's where to find value on Cape Town's Atlantic Seaboard
Category Property News
Most prospective buyers don’t even consider the Atlantic Seaboard as an option anymore, dismissing it as an exclusive enclave where even the first rung of the property ladder is beyond most budgets. And while this generalisation may not be far off the mark, there are exceptions, most notably a prime oceanfront suburb with a broad property spectrum ranging ranges from designer trophy homes to very accessibly priced entry-level apartments starting at around R2 million.
No longer a characterless strip populated by shabby old apartment blocks, Mouille Point has been dramatically transformed in recent years with the renovation of existing complexes interspersed with luxurious new developments. This has not only elevated the suburbs status and appeal, it’s also exponentially increased the available property options and boosted the sluggish market.
“Propstats records reveal that in 2007, fewer than 10 apartments changed hands at an average sale price R1.76 million, with only two properties breaching the R2 million mark. But the advent of world cup preparations and the regeneration of surrounding neighbourhoods soon injected life into the market, and in 2010 we saw 38 apartments change hands at an average selling price of R2.59 million,” says Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty.
“By the end of 2015, the average price had increased by an astounding 235%, with 37 sales achieving an average selling price of R5.9 million, excluding one exceptional R85 million transaction. A year later, the number of apartment sales in Mouille Point jumped to 54 with a 19.8% spike in the average sale price which rose to R7.07 million with the lowest and highest sale prices being R1.05 million and R27.995 million respectively.
“We did see a dip in sales as well as the average apartment price in 2017, but this can largely be attributed to the top end of the market tapering off from Q3 when investors began to adopt a ‘wait-and-see’ attitude in the run-up to the December NEC conference.”
However, demand for property in the entry and mid-markets remained strong, and the market quickly rallied with the new year kicking off on a very promising note for the erstwhile 'Cinderella' of the Atlantic Seaboard.
“We have been receiving a steady stream of enquiries since the beginning of the year, and so far, the market is performing very well,” says Gerard Maisel, Area Specialist in Mouille Point, De Waterkant and Green Point for the group.
“According to current Propstats records, 12 sectional title properties changed hands in Q1, including a R40 million luxury apartment which raised the R7.1 million average sale price of the other transactions to R10.2 million. The lowest sale price was R2.55 million, and six of the properties sold for between R7 million and R8.5 million.”
He says the majority of their local buyers 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 both long- and short-term lets.
“Mouille Point’s compelling combination of key drawcards ticks most of the boxes for these buyers - modern and luxurious lifestyles with unsurpassed ocean views as well as convenient proximity to the CBD, Waterfront, Atlantic Seaboard beaches and a host of other amenities,” says Maisel.
“There are also many top-class eateries along the strip and the vibrant the seafront has become a popular extension of the Sea Point Promenade that attracts walkers, cyclists and families. The expansive Urban Park and Metropolitan Golf Club are also both within easy walking distance.”
Maisel adds that Mouille Point residents also enjoy the peace of mind afforded by a dedicated 24-hour security service funded by The Ratepayers Association. Regular car patrols, Segway patrols and foot patrols as well as number plate recognition camera links to SAPS have significantly reduced the crime rate.
Author: Lew Geffen Sotheby's International Realty