Green Point apartment market soars in four years

Average apartment prices in Green Point have increased by a staggering 41.95% over the past four years since 2011, placing the suburb ahead of its neighbours De Waterkant, Three Anchor Bay and Sea Point East above Main Road.

Owning a property in a 5-star hotel like the Cape Royale in Green Point allows an individual or corporation the ultimate lavish lock-up-and-go lifestyle. This three bedroom, three bathroom duplex penthouse with Juliette balcony has two reception rooms, a study, a dining room and offers two parking bays, as well as access to all hotel services such as room service, the pool deck, concierge and gym. It comes fully furnished and is on the market for R6.995 million.

“Registered sales at the Deeds Office show that in 2010 the average apartment price in Green Point was R1.685 million with a median Rand per square metre of R19 710. By the end of 2014 the average apartment price had increased to R2.392m at just under R39 000m²,” says Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard CEO.

“Green Point also outperformed its neighbouring suburbs in terms of sales volume with 929 apartments to a total value of R1.692 billion being sold in the period measured between 2010 and the end of the first quarter of 2015. Not far behind is Sea Point East with 886 apartments sold to a combined value of R1.532bn.

“Three Anchor Bay and De Waterkant are both much smaller in terms of size, and their sales over the same period were 388 units to the value of R692m and 536 units to the value of R1.089bn respectively.”

According to Miller, the most popular price band has been for properties under R2.5m, with 174 registered sales to the value of almost R260 million at an average sale price of R1.49m, at R30 330m².

Properties priced between R2.5m and R5m showed the second highest interest with 49 units sold to the combined value of R166.5m at an average of just under R3.4m. The average price per square metre in this price band is R58 000.

Says Miller: “The upper end of the market is lagging a little as only nine apartments in the R5m to R10m and seven apartments in the R10m to R20m price bands were sold during this period. The average sale prices were just over R6m and R11.6m respectively.”

According to Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, the growth in both sales price and volume can be largely attributed to the substantial urban renewal in Green Point which was initiated for the 2010 World Cup.

“This extensive economic boost inspired additional refurbishments in the suburb. We’ve seen numerous old buildings demolished to make way for modern apartment blocks - the latest of which was launched just this month - and there has also been extensive renovation to older apartment blocks and an upgrade and expansion to the commercial component in the area.” 
Geffen says that this has impacted enormously in the return on investment (ROI) for property owners, particularly for those who bought apartments in the area prior to 2010.

“The return on investment measured during 2014/15 in Green Point showed a very healthy return of an average nominal growth rate of 16% per annum recorded over eight years, which theoretically means that an investor could double his money in eight years if the growth rate remains consistent.”

The past decade has seen several new apartment developments being built in Green Point, including Cape Royale, The Legacy, The Odyssey, Eclipse and 177 On Main with the emphasis being on the current “lifestyle” trends.

Most of those which are not situated on Main Road are in Upper Green Point above High Level Road, and it is these properties which are fetching the highest prices with the sophisticated modern design, quality finishes and spectacular views.

Jolene Alterskye and Simony Santos, Area Specialists for Lew Geffen Sothebys International Realty say: “There is now a wide choice of trendy and upmarket apartments on offer for the discerning visitor, from newly wedded couples seeking luxurious honeymoon accommodation to corporate professionals purely interested in the genuine lock up and go option.”

Highly recommended by Alterskye and Santos is the Cape Royale Luxury Hotel and Residence which is ideally situated within walking distance of not only the CBD, De Waterkant and the Cape Quarter, but also the Virgin Active gym and the award-winning Green Point Urban Park. Offering a variety of accommodation options, the Cape Royale also has full in-house amenities and facilities, including a full concierge service and the stylish Skye Bar on the pool deck.
Recently completed developments in the suburb include The Richmond and Versailles, with The Chelsea due for completion before year-end.

Says Miller: “It is these properties which are attracting more and more corporate travellers and affluent tourists to the area, as well as successful young corporate types who work in De Waterkant, the Waterfront or in the CBD. Green Point’s conveniently central location has always been its main drawcard, but the accommodation options available until recently didn’t cater for this calibre of visitor or owner.”

However,” says Miller, “with additional new developments like Ten on Ravenscraig and Romney One currently in planning stages and selling off plan, there is very little land left in the area for development and opportunities are few and far between.”

“Sotheby’s International Realty is in the fortunate position of having acquired the mandates for two vacant lots of land which are ready for development, one of which is perfectly positioned on Main Road and generously measuring 1016m², while the other 844m² vacant lot is in Springbok Road in Upper Green Point and boasts panoramic views.

Geffen concludes: “Where Green Point was once regarded as rather run down and the poor relation to its exclusive Atlantic Seaboard neighbours, it is now highly sought after for its cosmopolitan feel and myriad eclectic shops, cafes and restaurants as well as its proximity to all the main attractions and amenities of Cape Town. In short, property in the area is an excellent investment which is set to grow exponentially considering Green Point’s location and the economic injection it has already received.”