Cape Town prices more than double
Property prices in some of the prime areas of Cape Town, such as the Atlantic seaboard, and the areas popularly known as City Bowl and De Waterkant overlooking the harbour, have more than doubled in value in the past three years.
Estate agents attribute this in large measure to the rejuvenation of the city's central business district, where conversions of old office blocks into residential apartments have been among the main factors spurring a retail and residential boom.
Laurence Woodburn, an associate with ReMax, says that while the market has been showing tremendous growth it has slowed down a little at the higher end, where properties are valued at R5m and more.
This is particularly so in areas like Camps Bay on the Atlantic seaboard, which many agents regard as being overtraded.
The growth in value is typified by properties in De Waterkant, a trendy enclave situated above the V&A Waterfront, where small semidetached, two-bedroomed, two-bathroomed properties, without on-site parking have been selling on average for about R2,5m.
Woodburn, will be auctioning a three-bedroomed property in the De Waterkant area later this month that includes a garden and pool, as well as a double garage and parking for two other cars.
He anticipates that the selling price of this property will be in the region of R4m to R4,5m.
He says one of the reasons for De Waterkant's popularity in this market segment is that it is not burdened with some of the hassle factors that other select areas.
On the Atlantic seaboard, for example, maintenance costs can be excessive, particularly when properties are not regularly lived in, because of the debilitating effect of rust from salt-water, while in-season traffic congestion in areas such as Camps Bay and Clifton is notorious.
While structured parking is in short supply, De Waterkant a popular tourist spot is not subject to the same level of traffic snarl-ups, enjoys views over the harbour, and is within walking distance of the V&A Waterfront and the CBD, Woodburn says.
Article from: www.sundaytimes.co.za