The Cape Town property market has been abuzz since the election of President Cyril Ramaphosa, Budget Speech and cabinet shuffle – all factors which are “expected to go a long way towards reaffirming investor confidence in real estate”, according to Dr. Andrew Golding, chief executive of the Pam Golding Property group.
As testament to that, in the last few months alone, we have seen the controversial announcement of Cape Town’s multibillion-rand foreshore freeway precinct development with bidder Mitchell du Plessis Associates (MDA) proposing an R8.3-billion plan to create 3,200 “market-related residential units.” Cape Town’s coolest restaurant thoroughfare, Bree Street, will see the 36-storey retail and residential block, 16 on Bree, with a July 2020 launch date for the city’s tallest residential tower. Even Hout Bay has seen Sol Kerzner announcing his Leeukoppie estate, designed by an array of architects, with prices ranging from R20.5 million for a 374 sqm house on a 1060sqm property, to R30.5 million for a 738sqm home on a 1487 sqm property. It is evident an appetite for bold development remains.
Cape Town has always been the most prominent jewel in South Africa’s property chest. 9 out of 10 richest SA suburbs are in Cape Town, with the average price topping R15m. These were the findings of a study done by Seeff, based on data from Lightstone and Propstats for the period 2011/2 to 2016/7. The top 10 rank as Clifton (R23m), Llandudno (R17m), Bantry Bay (R16,9m), Sandhurst (R16,5m), Camps Bay (R16,2m), Fresnaye (R16m), Waterfront (R16m), Higgovale (R16m), Bishopscourt (R15,1m) and Constantia Upper (R11,6m).
In this evolving roller-coaster environment and economy, the last decade has seen coastal explosion moving slowly inwards to inner city regeneration, and then creeping back outwards to the city’s edge – Woodstock and Mowbray being the most recent trending spots for value-hungry investors and new home buyers.
One area that is stealthily making a play is the stretch from the city out to The West Coast with new developments springing forth from the Northern Suburbs and inching closer to the city, with Parklands and Century City already booming. Bettering many recent Woodstock and Mowbray developments on price, but offering a rare piece of ocean fronted real estate, The Edge Development at Lagoon Beach, has carved a niche for Northern Suburbians and West Coasters who need to get closer to the city and reduce traffic time while maintaining a more spacious lifestyle, or Woodstock or city dwellers who want a lower per square metre rate and more “legroom” and some sea air.
On the edge of the city (9kms), and edge of the sea, it offers investors or homeowners a double-edged proposition, but happens to drop in at a good value starting price at 1.35m. The brains trust behind it, Combined Developers, are leaders in the area, while sales agents Willbridge Property Company have just completed a 47-unit sell-out of Robert Silke’s new Tuynhuys development on Keerom Street.
“While growth may not be as rampant as previous years, the prices remain strong, and has also created the start of a new migration out of the city to the suburbs, seeking new nodes of excellent value,” explains Viv Delbridge, Sales Director at Willbridge. The Edge’s proposition pierces the conundrum for informed buyers as the city centre prices have continued to soar.
Ranking in the top 10 Knight Frank Prime Global Cities Index along with the top cities in the world for the best luxury house price growth, Cape Town ostensibly has it all – between mountain views and sea, Blue Flag beaches, shopping malls, trendy leisure and food precincts, and wine farms. Ironically, The Edge sits right in the middle of all the above. It’s a short walk (300m) to the beach for ocean lovers, young families, surfers, and kiteboarders, but at the same time, it lies close to the city and to Century City, connected by Marine Drive, The MyCiti BRT transport system, and bike lanes. As a live-work-play environment, office workers could even shop, and work, then walk next door to their home.
Delbridge adds, “One of its finest features though is it has been designed with “UX” in mind. User experience is a term normally saved for technology, but we see it that these days, homeowners want a designer and developer to think about the entire journey from arriving home to parking, unpacking and stepping into the development, and up into their unit. The facilities not only need to be beautiful and stylish, but they need to be intelligent, and offer the things we need in this day and age from security to technology, storage for sporting goods, as well as being water-wise, eco-friendly and energy efficient. This intelligence is all seen as real value add at a pretty good price.”
Short-term and hospitality rental specialists, Home from Home, say it has the short-term letting appeal, but that’s a given if the location is just right. “The Cape Town rental market remains strong, especially in the more accessible price ranges in prime locations, and this stretch of coastline with its magnificent view, and MyCiti bus route, greatly appeals to foreign visitors,” Charles Bloom concludes.
The Edge launches this week to the public via www.edgeliving.co.za