In a slowing market, Camps Bay and Bakoven are the stand out areas right now with record sales and returns according to Ms Billy Rautenbach, Residential Sales Manager for Seeff’s Atlantic Seaboard and City Bowl operations.
For the second successive year, sales in Camps Bay and Bakoven topped the R1 billion price mark with the total sales turnover for 2015 of well over R1.1bn, the highest ever rand value achieved in the suburbs to date.
Some 15 trophy homes have also sold at prices of upwards of R20 million, the highest volume ever recorded in this price category on the Atlantic Seaboard.
According to Ms Rautenbach, there is still no end to the demand for luxury villas with top end sales still being concluded ranging to R27 million in Camps Bay Drive, R26 million for a beach bungalow and R30 million for a luxury home in Theresa Avenue, all sold by Seeff.
The average sales price for Camps Bay (including Bakoven) ended last year on just over R10.8 million, a phenomenal R2.4 million (29%) higher than the R8.4 million average of the previous year.
Sellers of houses during the 2015 year also achieved an average return on their investment of 14%, measured over an 8-year holding period. On an aggregated basis, this amounts to well over double the CPI rate for the year.
On an individual basis, sellers did even better, says Ms Rautenbach. A house in Theresa Avenue that was bought in December 2012 for R10.7 million was for example resold in April 2015 at R17 million, achieving a 22% return in just two years.
Another Theresa Avenue house that was bought in April 2011 for R2.45 million was resold in September 2015 for R10.45 million, achieving a return of 15% per annum over 10 years.
In Beta Road, a house that was bought during April 2000 for R1.62 million was resold in April 2015 for R15 million at an average annual return on investment of 16% over a ten year period.
A house in Prima Drive meanwhile was resold in September for R32 million, achieving a 22% return over the nine year period since June 2006 when it was bought for R5.275 million.
“Apartments sold during 2015, achieved an even better average return on investment of 18% per annum over a seven year holding period. Some of the top performing apartment blocks include Oceana with two sales at a nominal 15% and 20% per annum over six years, The Crystal at 17% over just two years, Monte Carlo Flats at 17% in just one year and Kev’s Place at 15% over a fifteen year period.
Camps Bay and Bakoven head the luxury sector of the Atlantic Seaboard, both in terms of the total number of units sold and the total rand value of sales for the past two successive years”, says Ms Rautenbach.
Total sales for both areas amount to R1.065bn (112 units) for 2014 and R1.111bn (86 units) for the 2015 year as at the end of the third quarter. In reality, the year ended closer to R1.115bn, she adds.
Freehold houses were the biggest seller in both Camps Bay and Bakoven, accounting for some 47% and 53% of all freehold sales in the top four luxury suburbs of the Atlantic Seaboard (being Clifton, Bantry Bay, Fresnaye and Camps Bay (including Bakoven) for the period starting 2014 to the end of the third quarter of 2015.
During this period, some 198 freehold houses worth R2.176bin sold in Camps Bay (including Bakoven) compared to 111 sales worth R1.353 billion for Fresnaye, 42 sales worth R660 million for Bantry Bay and 23 sales worth R460 million for Clifton.
Camps Bay and Bakoven also topped the luxury suburbs for apartment sales, accounting for almost forty percent (37%) of the total value of apartment sales. This amounted to R808 million (120 units) compared to R569 million (96 units) for Bantry Bay and R288 million (62 units) for Clifton.
A further indication of the excellent performance of the suburbs, is the strong growth in sales and values. According to Ms Rautenbach, the rand value of all freehold house sales was 140% higher than for 2010 (R443 million) and by 2015 it was 151% higher than for 2010.
Apartment sales for 2014 and 2015 amounted to R427 million and R381 million and were 73% and 55% higher than the R246 million of the 2010 year. The 2015 sales being for just three quarters.
The average house price for the suburbs escalated by 69% from R6.4 million in 2010 to R10.8 million by the end of last year, putting the suburb firmly among the most valuable real estate in the country.
This equates to a well above average growth rate of around 20% per annum over the last five years, says Ms Rautenbach.
This growth is attributable largely to a higher demand for luxury homes with some forty houses selling above the R10 million price band at an average price of R16.97 million. Comparatively, only about ten sales fell above this price level during the 2010 year and the average sales price for this category was just R12 million.
The average sales price for houses in the price band up to R10 million escalated by about 33% from R5.4 million in 2010 to R7.3 million in just five years.
Apartment prices escalated even faster at 88% from an average of R3.68 million in 2010 to an average of almost R8.5 million last year.
The highest prices achieved over the last year include R47 million in Fulham Road, R32 million in Prima Avenue, R29.1 million in Brook Street, R28 million in Theresa Avenue, R25.5 million in Hove Road and R26 million in Glen Beach Road.
Apartment prices that topped the price stakes include Boulder Apartments on Bakoven Bay where six apartments were sold, priced between R10.7 million (R41,961/sqm) and R33.63 million (R78,209/sqm). Other top prices include a unit in Villa Azure that sold for R12.7 million (R49,609/sqm), Oudekraal Views at R10.3 million (R40,078/sqm) and Vista do Mar at R9.15 million (R60,596/sqm).
Market conditions in the suburb as in much of the Atlantic Seaboard and City Bowl suburbs are still very favourable for sellers and there is no shortage of buyers, almost across the price bands, concludes Ms Rautenbach.