Atlantic Seaboard residential sectional title sales booming
Category Property News
Sales of apartments along the Atlantic seaboard have increased, with DG Properties selling 38 apartments in the past two months. According to Propstats, the total sales of sectional title units by all agencies along the Atlantic Seaboard for December 2011 to January 2012 was 76 sales, and for December 2012 and January 2013 the total number sold was 77, says Dogon managing director Rob Stefanutto.
"A total of 33 apartments were sold on the Atlantic seaboard in December, and 20 of these deals were closed by DG agents. In Sea Point and Green Point, one DG agent sold 16 apartments in 60 days. In January, three agents sold 12 apartments for a total of R80 million across the Atlantic seaboard - all pointing to a flurry of sales in the R1m to R4m price bracket. "A four-bedroomed apartment in Bantry Bay was sold for a record price of R30m to a North African buyer, by Nita Abel and James Curtis.
The previous record for a Bantry Bay apartment was R25.95m, for a flat sold in November. In January, the pair sold seven units worth more than R55m in Bantry Bay and Sea Point." Stefanutto attributes the increase in sectional title sales to the low interest rate. "Many investors are buying in the R500 000 to R1.5m price range, as the low interest rates, for the first time, are equivalent to the yield this category of apartments is achieving." he says. "Very soon there won't be many properties available in these areas for under R1m."
Atlantic seaboard apartments that are considered good value but have been on the market for some time are now experiencing renewed interest, in what Stefanutto regards as pent up demand buying. "The festive season is usually a quiet time, but we haven't experienced a season this buoyant since the days of historic property highs," says DG Properties. "For the past four months we have been trading in excess of R100m worth of property each month."
"The buoyancy is also showing in rentals for the area. The rent for an average two-bedroomed apartment is around R12 000 a month and up to R35 000 a month if it has direct access to the beach. With so many sales, a classic supply and demand scenario is being created so we expect to see prices rise." Source: sapropertynews.com
Author: Weekend Argus (Saturday Edition)