Apartments from R2m selling fast in Cape Town’s Sea Point

Despite perceptible price deflation and subdued market activity in Cape Town’s Sea Point this year, there is still considerable appetite for secure homes, especially in the two secure townhouse complexes in the area where demand exceeds supply.

This is according to Malka Zinman and Lauren Smith, Area Specialists for Lew Geffen Sotheby’s International Realty, who has concluded three sales during the last three months in The Avenues, a sought-after development with sports amenities and 24-hour controlled access.

“All three units spent less than a month on the market, with one unit selling for full asking price while the other two fell just short. We currently only have one similar property available in St John’s Wood, which is already attracting considerable buyer interest.”

Zinman and Smith say the lack of available land for further development means that these two complexes will continue to experience high demand in the foreseeable future, mostly from local young families and professionals seeking spacious but low-maintenance secure homes.

Brendan Miller, CEO of Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl, says buyers now often prefer sectional title homes, given the excellent security and convenient lifestyle they offer, which has spurred the development sector.

"Over the last few years we have seen a large number of new developments popping up in the area, some of which are completely renovated older blocks and others are on land where original single buildings have been demolished to make way for new high-rise blocks. Most offer high levels of security with 24-hour access-controlled entrances and secure parking,” says Miller.

“As a result, there is now a wide selection of apartments available to suit most needs and budgets. The entry-level price for apartments in Sea Point is around R2 million, with very little stock below that, and at the top end are luxurious penthouses in the trophy-home price band.”

The upper end of the sectional title market has fared surprisingly well thus far this year. Zinman and partner agent, Lauren Smith, brokered a record apartment sale price for a beachfront penthouse and concluded three sales within 24 hours of listing during the first quarter of 2018, two of which were in The Avenues.

“Convenience is one of the key reasons for Sea Point’s ongoing desirability and for the beachfront’s resurgence as one of the most sought-after areas on the Atlantic Seaboard. A broad array of amenities is within easy walking distance and the promenade and beaches across the road are ideal for exercise and family leisure time,” says Zinman.

“This is also the reason that the area is becoming increasingly popular with empty nesters and buyers who are downsizing.”

While the security and convenience of apartment living have become increasingly appealing drawcards in recent years, the entry level has also been bolstered by the growing challenges of declining home affordability as consumers have been forced to tighten already restrictive belts.

“The significance of the current political/economic environment cannot be ignored as it is unlikely to change significantly leading up to the election. In other words, we should not expect any major positive market shifts in the foreseeable future,” says Miller, adding that it must also be remembered that the Cape Town market is going through a price adjustment after rising too far and too fast post the last recession.

“Therefore, the two key factors during the next two years will remain realistic pricing, appointing experienced agents from established agencies with good databases and extensive marketing to the right demographic.”