Atlantic Seaboard property stages a summer bounce-back, says Seeff

Atlantic Seaboard property sales for the second half of 2020 have staged a notable bounce-back and Seeff's agents anticipate a busy December and summer season. Pola and Nadine Jocum, agents with Seeff Camps Bay say that following on a record month of R55 million in sales in October, they are busy with another potentially record-breaking month for December.

While the market no doubt remains tough, especially at the top end where sales are few and far between, Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl says this year has been one where the agents have played a notable role with a significant amount of deal-making done to conclude sales.

We are definitely seeing a busy market and expect a good December and great start to 2021, he adds.

Despite the two-month Covid shutdown in the second quarter, the market has achieved R2.6bn in sales by early December at an average selling price of R6.5m, the highest of any area in the country. The second half of 2020 has also been notably better compared to the first half.

The sectional title sector has been especially active with the luxury sector above the R4 million achieving sales of R1.186 billion, 80% of the Rand-value of all sectional title sales this year.

Adrian Mauerberger and Bryan Ginsburg, luxury sectional title agents with Seeff say 30% of their sales for the year have been above R10 million. This has been driven by a rise in demand for larger apartments in great locations that offer space to work from home.

The challenges notwithstanding, the agents have achieved a number of records including the highest price in Green Point with the sale of two units in 111 Ocean View Drive for R34.99 million and for an apartment in Cliffside, Bantry Bay sold for R25.5 million.

Buyer's market

Nonetheless, it remains one of the best buyer's markets with high stock levels. For the first time in years, we are holding some of the best priced luxury apartments offering value in terms of below average cost per square metre as well as properties where the sellers may indeed be making a loss based on their purchase price.

Buyers should go ahead and put in offers as the agents say that it is difficult to know how motivated the seller might be until the offer is in writing. It is often at this point that the seller will look to negotiate.

When it comes to full title house sales, Camps Bay tops the list with the highest number sales for the year. According to Pola and Nadine Jocum, it has been an unexpectedly busy six months in Camps Bay and Bakoven.

60% of all recent sales in Camps Bay have been achieved by Seeff's two teams and the Jocums note that it has been a year of hard work for the agents as sales have been complex and challenging to close with huge gaps between sellers and buyers, say the agents.

While a few new luxury apartments have broken the R20 million barrier, only one house sale was achieved, being 27 Rontree Avenue Camps Bay, sold by the agents for R20 million. The agents expect more sales above R20 million to R30 million to come through during December.

Buyers have been predominantly local or ex-South African with foreign partners from the USA and Hong Kong.  The agents are currently negotiating with a third party in the R30 million range as, due to Covid, the client cannot fly here. Negotiations have been successfully concluded via video walkthroughs, detailed information sent or representatives viewing on behalf of the purchaser. 

The agents also point out that there are now only a few listings available in the Camps Bay area in the entry-level price range of R7 million to R9 million which is where the interest and affordability of most purchasers emanate. Most of the apartments and duplexes that have sold have been in the R3.5 million to R7 million range.

The R12 million to R18 million range has been challenging with only a few sales despite the high volume of listings on the market. Most buyers, especially those semigrating from upcountry, have expectations of renovated luxury homes which often do not meet their  standards in this price range, and they have been reluctant to purchase to renovate, even if the location is desirable, add the agents.

Living here is like being on a year-round holiday and what you have in the Atlantic Seaboard real estate market is the perfect intersection between lifestyle and investment value. It is a diverse market, offering various price points. Mr Levin says there is now a super selection of stock on the market offering choice not seen for many years, giving smart buyers plenty of options to get into the market before the next growth spurt.