SECURITY: One of the features that residents of the canals in the V&A Waterfront enjoy is the secure lock-up-and-go aspect of property ownership.
The canal residential development in the V&A Waterfront has shown a remarkable year-on-year increase based on average values, with an impressive 405 percent increase since it was launched in 2000, according to Lew Geffen Sotheby’s International Realty V&A Waterfront agent Emelia van der Linde.
She says the average nominal price increase recorded over the past decade has been 120 percent which equates to a healthy average price increase of 12 percent a year.
“However, over the past six years this has jumped to a nominal return on investment of 15 percent a year. In 2000, the average apartment price across the board was just R1.6 million, and today the same property will fetch over R8m.”
According to van der Linde the entry level price for a one-bedroom apartment is in the mid R5 millions, with the upper end of the market breaching the R35m mark, and buyers can expect to pay between R47 000/m² and R70 000/m² for an apartment on the canal.
Offering urban living in a serene setting close to all major amenities, including the V&A Waterfront shopping mall, Cape Town CBD, beaches and the Cape Town International Convention Centre, the canal has become one of the most sought-after residential addresses in Cape Town.
Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty says: “Due to the limited space for further development, solid return on investment and the excellent returns in the short term rental market, as well as the secure luxury lifestyle offered, increased demand and limited stock are likely to drive the prices even higher.
“One of the main contributing factors to the increasing demand is the ongoing development in the CBD and V&A Waterfront precinct. New commercial buildings are springing up all over, including the new Touchstone House, which will be completed in October, the new KPMG building and of course Portside, which is now the tallest building in the city and houses FNB’s regional headquarters. The expansion of the CTICC will also see a sharp increase in demand for short term rentals in the canal precinct.”
With only 11 developments lining its banks, the demand for convenient luxury living in this prime location has begun to overtake supply and agents are finding that stock is now limited.
According to van der Linde, only 17 properties have been sold so far this year worth a total R143m in the canal developments. In 2014 48 units were sold for a total of almost R260m, with the most sales being recorded in two complexes.
At Juliette, there were 12 sales to the value of R84m, and at Kylemore 11 properties changed hands for a total value of R106m, with several transactions realising full listed prices.
The rest of the sales were evenly spread between Altmore, Bannockburn, Carradale, Dovenby, Ellesmere, Faulconier and Helenslee.
“Correctly valued, these properties sell very quickly,” says van der Linde, “and many of the units sold last year were bought within two months of being placed on the market, with several being snapped up in a matter of days.”
Van der Linde says that although the market is active across all segments, the most popular are the two-bedroom units and the precinct is sought after by local and foreign investors seeking secure investments in South Africa’s premier destination.
Posted in Residential Property News
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