In Cape Town, some people are willing to pay around R50 million for apartments or even R70,000 monthly to rent upmarket apartments in the coastal city’s most sought after areas.
This is according to property company Seeff Property Group, who said that while more than half of all property sales in the country were still for freehold property, there is a rise in demand for apartments with buyers prepared to pay higher prices.
Factors such as urbanisation, traffic congestion, and the need to live closer to work will likely remain key drivers of the demand for apartments, according to Seeff agents.
Propstats data shows a booming apartment sales market with over R6.1 billion in apartment sales in Cape Town over the last year.
On the Atlantic Seaboard, apartment sales topped R3.3 billion last year. More than 20% of sales were priced below R2 million while over one third of sales was more than R5 million.
According to Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl, apartments achieved some of the highest prices paid in Cape Town last year.
Eventide apartments in Clifton sold for R50 million and R53 million while an apartment in Helenslee at the Waterfront sold for R54 million.
Levin said that in the City Bowl/CBD apartment sales were over R1.2 billion with 46% of apartments selling below R2 million, while 30 apartments sold above R5 million.
Certain sales were more than R10 million as price ceilings continue rise due to an increase in demand for apartment living, according to Levin.
While other CBDs in Johannesburg and Durban have seen huge decline since the Covid lockdowns, Cape Town’s performance is unique as it’s CBD enjoyed an uptick in apartment sales over the last year with around 159 units selling at an average price of R2,432,793.
The highest price achieved in the City Bowl include R17.95 million in 16 On Bree.
According to Seeff, tourism and business access are drivers of strong demand for apartment rentals across the Atlantic Seaboard and City Bowl/CBD. This makes them attractive rental investments.
Century City is another busy area in Cape Town especially for apartment rentals, according to Helga Clemo, Seeff’s licensee for the area. The highest rental achieved is R70,000 per month for a furnished apartment in Crystal Towers.
The Gauteng metros are also hugely popular for apartment living, according to Charles Vining, MD for Seeff Sandton.
Although a large majority of apartments sell for under R4 million, prices for high-end luxury apartments around the Sandton CBD now tend go from more than R20 million to upwards of R80 million for a penthouse.
IOL Property