While the right address and panoramic sea views are a given criteria, and price is not a defining factor, it is noteworthy that exclusive trophy homes are increasingly fetching prices upwards of R20 to R30 million and are now breaching the R100 million barrier, he said.
This year, there have already been about 201 sales to the value of almost R1.7 billion in these four suburbs alone. Comparatively, 178 property sales to the value of just over R1.5 billion were recorded during the same period in 2012; a significant year-on-year improvement of 16% in sales activity this year, said Seeff Atlantic Seaboard MD, Ian Slot.
Upwards of about eight properties, priced above the R30 million mark, have also already sold here compared to six last year. Seeff's sales in these suburbs alone already tops the R600 million mark with top-end property sales, including a villa in Head Road, Fresnaye that sold for R26 million, a Clifton villa that sold for R24 million, an Eventide apartment (Clifton) that sold for R45 million, a four-bedroomed villa in Nettleton Road (Clifton) that sold for R31.5 million and a 1200m2 vacant plot in the same road that sold for R35 million (R29 166/m2).
The Atlantic Seaboard is a unique location that attracts not only wealthy locals, but from across the globe and is increasingly seen as a safe haven for wealthy property buyers from the African continent, said Slot. An analysis of foreign buyer activity this year reveals that the area still attracts the lion's share of foreign buying with around 96 sales to the value of almost R784 million, representing about 28% of all buying activity here. Almost 10% of foreign buying is now also attributable to buyers from African countries, such as Nigeria, Namibia, Mozambique, Zambia and Zimbabwe, he said.
When Seeff sold the first One & Only Penthouse at just over R110 million at the end of 2009, it shattered the record for the highest residential sale ever in the country. Since then, and despite the subdued economic climate, we have seen buyers prepared to pay upwards of R40 million and ever closer to the R100 million mark for a home here. This notwithstanding, buying activity remains soft and discerning at the top end of the market with each buyer and transaction highly unique, said Cohen.
That this small, yet highly-sought-after strip of coastal real estate has remained recession proof is also borne out by the fact that the average house prices here continue to strengthen year on year, said Cohen. In 2005, for example, when activity was at peak levels, the average price in Clifton was R9.8 million, today it is at around R17.5 million, almost double. The average price in Bantry Bay has increased from R5.4 million to R9.5 million and more than doubled in Fresnaye, from R3.6 million to R7.4 million, while Camps Bay homes now cost on average R7.6 million; up from R4.9 million in 2005.
Vacant land is extremely scarce and can, consequently, now sell for well above R9 million for a plot, said Cohen. Based on land sales in the suburbs this year, rates range upwards of R17 850/m2 to as much as R29 166/m2 for a rare plot in Clifton's sought-after Nettleton Road.
An added incentive for those still hesitant about whether they should be buying or selling here, is looking at the average capital growth returns that sellers have achieved post-2007/8, said Slot. Since 2009, sellers have achieved average investment returns on resale of 14% to 15%, based on a holding period of just over six years. While this is understandably somewhat below the boom-period returns of around 30%, it is still significant, he added.
While there is still plenty to buy in the R10 to R15 million price range and this has been the most active price band here this year, the agent said that if you are looking to secure an unbeatable location and buy in some of the high-value streets, such as Nettleton Road, you would need to look at spending upwards of R30 to R50 million now. In Clifton's Nettleton Road, for example, the agent is marketing two über-luxury villas at around the R100 million mark each and in De Wet Road in Fresnaye, a new-build at R59.95 million. This remarkable four-storey villa offers 1300m2 in floor space, took three years to complete and incorporates cutting-edge design, the very latest German and Austrian technology and European finishes. Aside from the breathtaking sea views, it incorporates high-tech green home and smart-home technology with just about everything in the home, from the biometric security to mood lighting, temperature (heating and cooling), sound, Wi-Fi, and more, controllable at the mere touch of a button.
A glass elevator, floating bridges and walkways, floating gardens including a vertical garden and two swimming pools, the main being over 40-metres long and wraps around the home, suspended two floors above with glass walls are just some of what is on offer. The bespoke finishes include Iroko timber floors, doors and architraves, Hans Grohe bathroom and kitchen fittings, massive custom-designed fireplaces and more. The massive main living-area level occupies an entire floor and includes a European kitchen with a separate food preparation area. There are five luxurious bedroom suites; the main with a private lounge, massive dressing room and bathroom and a private deck and swimming pool. Additional features include a gymnasium, safe room, separate linen and laundry rooms, two staff suites with a kitchen, private garden and separate access, a spacious garage for three vehicles, a workshop, control room and back-up generator.
If you are serious about property, then this is where you would put your money, said Cohen. Globally, luxury markets have not only withstood the test of time, but have interestingly been some of the first areas to show real growth with markets such as London central, Manhattan, Hong Kong and Dubai beginning to show some real strength as HNWIs continue to invest here. A recent Financial Times article, for example, noted that the prices of trophy homes in central London are now almost 60% higher than in 2009 as demand shows no signs of weakening.
