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Flat sells for R25-m

A Clifton 600m² flat still under construction has been sold for R25-m – the highest price yet paid for an apartment on the Atlantic Seaboard.

That is according to Gail Gavrill of Pam Golding Properties (PGP), who said this week that there is currently “strong demand for sought-after properties” on the Cape Town coastline.

Buyers are forking out up to R50 000/m² for developments “on the water” in Clifton and Bantry Bay and up to R35 000/m² on the mountainside in these suburbs, she said.

Rebutting fears that Cape Town’s property market is cooling, estate agents in the PGP group are reporting annual price gains of up to 30% from coastal property developments in the Mother City.

Not even the spectre of nuclear power plant Koeberg on the horizon has deterred investors from snapping up properties with a sea view, with a recent development in Beach Road, Melkbosstrand, on Cape Town’s West Coast selling out in two weeks.

Bloubergstrand area manager Ivan Swart said that 21 apartments with an average price of about R1,5-m sold out within two weeks in Melkbosstrand, while only 15 of 110 units of a similar price are still available in a Big Bay luxury development.

Southern Peninsula suburbs like Noordhoek, Kommetjie and Fish Hoek are also experiencing “enormous interest” from property investors, however there is some price resistance, said PGP’s Dudley Armstrong.

“Position remains of prime importance to these buyers, but they are not merely prepared to accept whatever asking price is set by developers. We have seen some resistance to prices over R850 000 for vacant land,” he said.

Word-of-mouth is selling properties in lower-priced developments where vacant land is sold for under R500 000, Armstrong added.

Article From: Jackie Cameron - www.moneyweb.co.za/