Sea Point’s sectional title market shows promising signs of revival with a record sale

Posted On Tuesday, 20 March 2018 04:32 Published by
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After a four year high of unprecedented double-digit growth, South Africa’s strongest market took a knock in 2017 with a significant drop in sales volumes and price growth, but the new year has got off to a promising start with a record apartment sale price and three sales within 24 hours of listing.

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Malka Zinman and Lauren Smith, Sectional Title Area Specialists for Lew Geffen Sotheby’s International Realty who brokered these transactions believe that although there is still a way to go, there is definitely reason to be more optimistic about the year ahead.

“There are very promising signs of renewed investor interest, especially at the upper end of the market which was worst hit last year. As expected, security still tops the list of buyer’s priorities but we are finding that they are also increasingly attracted by unique homes with striking features like the beachfront penthouse we recently sold within a day.”

The stunning double storey, four bedroomed home on the Sea Point beachfront which realised R32 million, the highest price ever achieved for a Sea Point apartment, is one such a property. Perched atop one of the suburbs most popular blocks with panoramic views, it boasts features usually only found in houses, from an expansive pool deck with a sizeable pool and braai facilities to a separate pool room as well as a bar/entertainment room.

The other two apartments that sold within 24 hours of listing were situated in the Avenues in lower Fresnaye, a conveniently situated secure complex with not only excellent general amenities but also sports facilities and function rooms which is exceptional in an area where space is one of the biggest challenges.

“Convenience is one of the key reasons for the Sea Point beachfront’s resurgence as one of the most sought-after areas on the Atlantic Seaboard – an array of shops and restaurants are on their doorsteps and the promenade and beaches across the road are ideal for exercise and family leisure time.”

The sectional title market fared better than the housing market during a tough year and it’s also looking likely to bounce back quicker, which Lew Geffen, Chairman of Lew Geffen Sotheby’s International Realty, attributes to a number of key factors.

“While the security and convenience of apartment living have become increasingly appealing draw cards in recent years, the sector has also been bolstered by the growing challenges of declining home affordability as consumers have been forced to tighten already restrictive belts.”

Citing Lightstone data he says: “During the previous 12 months ending 28 February there were 351 apartment sales in Sea Point with 92 of those being during the last three months and since the end of 2017, the median sale price has already risen from R3.4m to R3.8m which translates to a very solid 11.7% increase.”

Geffen adds that another positive indicator in the sectional title sector is that the difference between asking and selling price has already dropped notably this year, from 5.8% in 2017 to 3.5% to date.

Zinman and Smith add that another contributing factor to the resilience of this sector is the popularity of Atlantic Seaboard apartments with empty nesters and other buyers who are downsizing.

They conclude: “As long as sellers are realistic about their pricing expectations and understand that the market will take some time to recover, the year ahead should be a lot better than last year in terms of sales volumes, steady growth and properties generally selling quicker.”

Last modified on Tuesday, 20 March 2018 04:43
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