Location key in rise of trophy home sales
WHILE the news on the economic front remains rather uninspiring, the property market has done somewhat of an about-turn since early last year, according to Seeff's managing director for the Atlantic Seaboard and City Bowl areas Ian Slot.
Most notably, we are increasingly seeing the rise of the R50-million trophy home on the back of buoyant demand in the trophy home locations, although still largely concentrated along the Atlantic Seaboard, Cape Town and the country's premier residential belt.
With buying fever in full swing this year, not only the sub R5-million sector of the market, but also above this and even at the top end, more trophy homes priced above the R20-million mark have sold here compared to the January to September period last year according to Propstats data, he says.
In the 2013-period, about 20 properties priced upwards of R20-million sold to the total value of just under R588-million in the suburbs of Clifton, Fresnaye, Bantry Bay, Camps Bay and the V&A Waterfront.
The highest prices paid, both incidentally above the R50-million price mark, was a Nettleton Road house that sold for R50-million and a penthouse at the One&Only at V&A Waterfront, sold by Seeff for R55-million.
This year, about 25 properties sold to the total value of almost R776-million with three sales above the R50-million mark; a Clifton Road luxury home for R55.86-million, a vacant plot on Victoria Road in Clifton for R70-million and a villa in Ave Fresnaye (Fresnaye) for R64.8-million, all sold by Seeff agent Lance Cohen.
While still reeling from the recession and buying activity in the trophy home sector remaining highly selective, unit sales increased this year by a stellar 25% and by 32% in value terms, Slot said. Trophy homes have also sold much faster and for about 11% on average within the asking price, down from well above 20% last year. Top-end properties are also increasingly breaching the R50-million price barrier.
In the five years since the start of 2009, about nine properties, priced above the R50-million price mark sold here and there is a clear acceleration over the last two years, he added. Not unexpectedly, Clifton tops the list with four of these sales followed by three sales at V&A Waterfront and one sale in Bantry Bay and Fresnaye respectively. While residential buying has largely dominated the trophy home sector of the market, investment buyers are slowly returning.
A prime location along with stunning sea views in the case of the Atlantic Seaboard is obviously a driver of the demand and value of trophy homes, Cohen said. Whether for residential or holiday purposes, you are investing in a prime real estate belt where values have been growing in spite of the sluggish economy.
With luxury villas increasingly fetching prices of R50-million-plus, even in Camps Bay where new listings are now heading to close to this, what can you expect for a R50-million-plus price tag?
The agent said a multistorey steel, glass and timber masterpiece, designed by renowned architects Van der Merwe Miszewski that is on the market for R58-million, is a good illustration.
Set high up against the slopes of Lion's Head in Bantry Bay, it enjoys panoramic sea views. It is bounded by a forest of magnificent blue gum trees that are masterfully incorporated into the property. The interiors are finished in neutral tones, light timber and porcelain tiling with top-class finishes, including gas fireplaces and central air-conditioning and heating.
Spread over four storeys, each with a wrap-around timber deck for expansive outdoor living, it includes a private elevator, five spacious bedrooms, a huge open-plan living area with an ultramodern kitchen with a pantry and scullery, study, cinema, wine cellar, basement pool room, sauna and steam room, double staff accommodation, double garage and additional parking for four vehicles, swimming pool with an outside shower and a yoga studio.
Architectural features include full-length glazing for maximum views and a striking three-storey central open void with high-level bridges that connect the various levels.
