Winter sales on Atlantic Seaboard reach R200-M despite recession
Category Property News
DG Properties, says the upper end of the property market on Cape Town's Atlantic Seaboard has remained buoyant, defying economists' predictions. DG sales for the area amounted to a record R200-million during June, July and August, which are traditionally considered the "slow" months in the property industry.
DG, whose company specialises in Atlantic Seaboard property sales, had expected to see the normal out of season downturn in sales in the area, exacerbated by the recession, but the demand for top properties had continued, with sales overtaking those of previous winters.
Statistics released by the RPPR (Regional Property Price Ranger), an independent body that records all agent sales in the Western Cape, show that 14 properties priced above the R15-million mark were sold during the last six months in the Fresnaye, Bantry Bay, Clifton and Camps Bay areas alone, she says. Financially successful South Africans who have a good instinct of when to buy are taking advantage of opportunities to purchase Atlantic Seaboard properties at present because they believe that homes in this area are a secure investment.
"High net-worth individuals recognise that in the current financial climate they not only have a far greater choice of prime properties than would normally be available, but that sellers are also more willing to negotiate on the selling prices." Adrien Epstein, a former banker and one of the area's top brokers, says many wealthy purchasers are buying during the downturn at discounts of 10% to 20%, as they know that these properties will soon appreciate in value again.
Epstein, who has personally been involved in over R300-million of sales for the company over the past six months, adds that the vast majority of properties sold by the DG within the past three months were sold to South Africans. "These clients have included Johannesburg and Durban residents who have bought second homes in Cape Town, or are relocating and purchasing their primary residences in the city.
The recent properties we have sold have included a Bantry Bay mansion for R25-million, a modern five-bedroomed mountain-top home for R31-million, and a beautiful lock-up-and-go Fresnaye townhouse for R11.6 million." Dogon Group Properties, which last year sold an apartment on the beach for an unprecedented R48-million, a home to former president FW De Klerk and another house for a record R45-million in Clifton, is still achieving some record prices in what is considered a challenging market, Epstein says.
"For example, we recently sold an unrenovated flat in La Corniche on Clifton's First Beach for R15.5 million, which equates to over R75 000 per square metre. This was achieved even though the unit had been on the market for over two years and had not sold during the property boom times." Epstein also recently sold another apartment in Cassandra in Clifton which had failed to sell on auction previously.
Other recent sales have included a four-bedroom, very modern home in Fresnaye, sold for R21-million to a Johannesburg buyer who was relocating to Cape Town. "Despite the economic downturn, we've had some amazing sales." Dogon says the Atlantic Seaboard rarely offers such a choice of top-end properties in prime locations, as there is little land available along this coastline and demand usually outstrips supply.
"With these properties correctly priced for the current market, and not overpriced, buyers are sitting in the pound seats." There is a great deal of interest being shown in properties in the area, and DG has been taking many serious buyers who can afford to invest to view the homes in its portfolio. "In a very buoyant market, you would never have this kind of a choice of beautifully designed homes in prime positions, with sea or mountain views,".
"And, as prices in this area would then probably be about 20% more, financially savvy buyers are buying now and are of the view that there is no better investment." For more information, contact DG Properties on +27 21 433 2580.
Author: Dogon Group Properties