Great Investment Opportunity

Great Investment Opportunity

Property on the Beach

http://www.campsbaybeach.net/

This is one of the most beautiful property videos I have seen. Please take the time to view it.

The Burnside – exclusive 10-unit development in Burnside Road

Tamboerskloof offers contemporary living in great setting

Nestling on the slopes of Signal Hill, Tamboerskloof offers remarkable views over Gardens and the city and seascape beyond which form part of the fabric of daily life in one of the most sought after suburbs in Cape Town’s City Bowl. New niche developments in this established area are rare. Now launching with Seeff City Bowl is The Burnside – a contemporary 10-unit development set on Burnside Road in Tamboerskloof, with sought-after positioning, maximum use of space, fine finishes and sprawling views over mountain and city.

The Burnside lies within walking distance of Kloofnek Road and Kloof Street along with their coffee shops, restaurants, bars and cosmopolitan atmosphere. Just up the road are the world-famous Lion’s Head, Signal Hill and Table Mountain, with close proximity to Kloof Nek, the Riviera-like Atlantic Seaboard, V&A Waterfront, the N1/N2 freeways and the CBD’s business hub.

Says Seeff City Bowl agent Bernice Musikanth: “Tamboerskloof is known for its leafy avenues, many restored Edwardian and Victorian homes - and for its few rare, in-demand contemporary developments, such as The Burnside. From R1.77m you can invest in one of these 10 fully secure, upmarket apartments with secure parking. There are just three units on each of the ground and first floors of The Burnside, each with two bedrooms and one bathroom. The second and third floors offer four duplex units of either one or two bedrooms. These all have terraces and patios – with the two end units each having huge terraces of 30m² plus an optional spa/plunge pool.”

Adds Musikanth’s partner, Bridget Shiffer: “With a contemporary design aesthetic incorporating clean lines and modern living, the interiors of The Burnside include fully fitted Bosch kitchen appliances and granite tops. The units are north-facing (warm in winter, cool in summer), and have remote-controlled gated access to on-site parking. There is advanced intercom/access control and perimeter infrared beams, and Internet connectivity via ADSL plus communal DSTV.”

Another bonus of Tamboerskloof is its fully fledged Neighbourhood Watch (TBK Watch), a partnership which involves the South African Police Service (SAPS), the Community Policing Forum (CPF), local authorities, security service providers and individuals and families who want to make the area a safe place to live. Its proximity to the Deutsche Internationale Schule Kapstadt makes it the first choice for German-speaking clients.

Musikanth says this complex will appeal to both young people entering the property market as well as older folk looking to downscale or wanting a secure lock-up a nd go lifestyle. “For those entering the property market it provides an excellent stepping stone – their investment will grow nicely and they will acquire their first home in a lovely area. It will suit their lifestyle in terms of design and functionality as well as proximity to all the essentials – coffee bars, clubs and beaches! The same applies to older buyers – again with proximity to all the amenities that make City Bowl living so popular and attractive.”

Configurations range from one bedroom duplex lofts on the top floors to two bedroom garden apartments and two bedroom duplexes with large outdoor terraces and pools. A 10% deposit secures you one of these units, with the balance payable on construction, completion, and registration of ownership.

The development is a project of Filcon Developments, who have secured a guarantee from A+ Insurance Company for full cash price and/or a completed unit if any investor wishes to pay upfront; such investors will receive a 15% discount on their unit. Adds Musikanth: “This is a first for the South African property market, and gives buyers a firm guarantee for putting their cash into the project – which in turn allows the developer to complete the project so much quicker.”

Contact Seeff City Bowl Bernice Musikanth 083 444 3434; Bridget Shiffer 071 605 5556; email bernice@seeff.com

City Bowl remains ever popular, with houses showing 11-17% average price growth over 3-5 years

Cape Town’s City Bowl area mainly consists of Gardens, Oranjezicht, Tamboerskloof and Vredehoek; Devils Peak forms part of Vredehoek, while Higgovale forms part of Oranjezicht. Seeff’s statistics division has analysed sales of houses in the City Bowl, which shows continued increases in average nominal price growth for all areas over the past 3-5 years. Looking at 2005-2009, growth rates in average house price per area were: Zonnebloem – 15.5%; Bo Kaap – 14.5%; Vredehoek – 11.8%; Gardens – 10.8%; and Tamboerskloof  and Oranjezicht both 9.5%. The 3-year average growth for the entire area was 11.8%. When looking at the picture over 5 years, it gets even rosier, with an average of 17%. Top of the ranks again is Zonnebloem (25.9%), followed by Bo Kaap (17.1%), Oranjezicht (16.3%), Gardens (15.5%), Vredehoek (14.1%) and Tamboerskloof (13.6%).

In the first quarter of 2010 there has been quite a bit of movement at all price bands in the City Bowl, with 38 properties sold and registered to the value of R165 902 000. The average price for a house in the City Bowl area now stands at R4 365 842. For the individual price bands, the figures were as follows: 14 sales between R500 000 to R2.5m, at an average price of R2 058 357. In the price band R2.5-10m there were 21 sales (55.26% of all the transactions), at an average price of R3 908 810 (highest priced sale R8.5m). At R10-R30m there were three sales at an average price of R18 333 333 (highest price of one unit R21,000,000).

The three highest priced houses that were sold were two in Higgovale at R16m and R21m, and one in Oranjezicht at R18m. The most active area within the City Bowl was Oranjezicht with 12 transactions at R62 575 000. For the first quarter of 2010 average house prices were: Devils Peak - R 2 890 000; Gardens - R1 770 000; Higgovale - R18 500 000 (top end) and R5 200 000 (middle and lower); Oranjezicht - R4 100 000; Tamboerskloof - R3 100 000; and Vredehoek R2 430 000.

Susan Litten, one of Seeff’s specialists for the City Bowl, explains the attraction that is driving this growth: “As the traffic into the city gets worse, the appeal of areas that may have been overlooked previously increases. Bo Kaap has beautiful Victorian- and Edwardian-based architecture, cobbled streets, Signal Hill as a backdrop and the CBD a mere stroll away. The views of the city, Table Mountain and sea are often spectacular. Homes here are still more affordable that in other parts of the City Bowl, and buyers have included visitors from Europe, Durban and Johannesburg looking for a base in Cape Town. Now this profile is changed to first-time buyers who recognise the value that these properties offer.

“There are few homes in Zonnebloem, but the remaining Victorian cottages here have great character, with wooden floors and doors and fabulous views of the harbour. Situated between the CBD and Woodstock, clients are beginning to realise the value of a cottage so close the CBD. This area also appeals to first-time home buyers, often moving on from city apartments."

Litten has achieved some of the highest prices in the area in the past 12 months - the highest price in the Bo Kaap at R 5,9m, in Devils Peak at R5.3m and in High Cape, a secure village within Vredehoek, at R 4,4m. “The excellent security at High Cape along with the young age of the development, with modern architecture and stunning views, has great appeal to young buyers. The slope is north-west facing, so homes are always light and bright. I sold the unit in question to a young client who loved the views and the large spaces these modern homes offer.”

Litten has a similar property in High Cape on sole mandate with Seeff at R5.95m. “This offers incredible value for the City Bowl with four bedrooms, three bathrooms, spacious open-plan living room, double garage, store room, and two large patios with protected city and sea views - arguably the best view in Cape Town. Watch the tugs manouevre the ships into the harbour, see the waves crashing onto the southern shores of Robben Island and view the wide beaches way up the West Coast. You will never want to leave your patio!

Seeff’s other specialists in the area, Michael Hauser, Anke Menelaou and Doris Ricketts, have compared sales there for June 2009 against June 2010, which shows that whereas houses in City Bowl were listed for an average of 143 days last year and the difference between listed price and sales price was 15%, this year the average listing duration is down to 95 days with an average drop in asking price of 10%. For April/May 2009 vs April/May 2010, listing duration was down from 125 days to 70 days.

Adds Menelaou: “Tamboerskloof is well known for the community involvement in a very successful Neighbourhood Watch and proximity to the Deutsche Internationale Schule Kapstadt. This makes it the first choice for German-speaking clients. The area is embraced by Lions head and Signal Hill, and the roads closest to Lions Head are as sheltered from the wind as is Higgovale.

“Oranjezicht is a leafy suburb with the most popular streets referred to in general terms as ‘The Avenues,’ situated above the Molteno Reservoir. The vistas across the City Bowl and harbour are spectacular. Traditional Victorian and Edwardian architecture remains popular with purchasers, but more and more ultra-modern homes are starting to take the place of older homes that are being demolished. Since these areas are still less pricey than Camp Bay, Clifton and Fresnaye, the last two years have seen interest from buyers who would not previously have considered these areas. The world-class St Cyprians Private School for girls is also situated in Oranjezicht, and has definitely proven to be a huge drawcard, while the top Afrikaans School Jan Van Riebeeck also attracts many buyers to Tamboerskloof, Oranjezicht and Higgovale.”

Says Ian Slot, MD of Seeff Atlantic Seaboard, V&A Waterfront, City Bowl and CBD: “The City Bowl enjoys the proximity to Cape Town’s CBD and Atlantic Seaboard, beautiful mountain views as well as the rich architectural building styles and excellent schools nearby.  It is understandably very popular. The City Bowl offers very well priced houses. The high demand for houses here also reflects in the return on investment, with the growth rate for the City Bowl for that past 5 years, 2005 - 2009 (year on year) a solid 15% for an average house price of R 4 365 000.”

This spacious four bedroom, three bathroom home in the sought-after High Cape secure village in Vredehoek is on sole mandate with Seeff at R5.95m, offering loads of space and spectacular city and sea views.  This beautifully maintained three-bedroom north-facing home surrounded by level lawns and giant trees on the wind- sheltered border of Oranjezicht and Higgovale is on sole mandate with Seeff at R7.395m, view at www.seeff.com, web ref 211542. The dining room is vast with views of  the city, harbour and Table Mountain.

And our first winner is.........................

Congratulations to Nic Reid for winning 10 000 SAA Voyager Miles for completing our Client Information form.

You too can be a winner in our quarterly draw, if you are a buyer click here and submit your details and participate in our next draw.

The Bloomberg boutique hotel 10 m from the beach in Camps Bay offers great investment potential at R30m

Seeff Camps Bay have a luxury beachfront complex for sale at R30m. Says Renette Israeli of Seeff Camps Bay: “A landmark beach villa hotel of this magnitude is not often available in Camps Bay - they are sought after by investors but rarely available. This one has an absolute prime position on the Camps Bay promenade, just 10 metres from the beach.”

Currently managed as a five-star self-catering boutique hotel, The Bloomberg offers 9 fully furnished and equipped one-bedroom apartments with fully fitted kitchens, air-conditioning and DSTV. Says Israeli: “Each apartment has spectacular sea views and there is a perfectly positioned sea-facing swimming pool in the complex. The units each sleep 4 persons offering 1 bedroom en-suite, as well as a sleeper couch in the spacious living room. The self-contained kitchen is fitted with high-quality modern finishes and appliances. Tasteful furnishings and quality artworks have been used all round. The aesthetic of the interior matches the exterior: modern, crisp and new. Units are furnished in neutral shades.”

The building has the highest standard of security – including locks at the main entrance. There is secure, direct access from the lift. Parking is also a hot commodity on the “Platinum Strip” of the promenade in Camps Bay, and The Bloomberg has 13 undercover secure basement parkings.

Each apartment has already been sectional titled, meaning that they could each be sold off individually should the purchaser wish to do so in due course. Says Israeli: “Currently The Bloomberg is being sold as a single property, but the potential and possibilities are ample. Income-generation options vary from a high daily rate (both in and out of season) or a weekly and/or monthly rental. Whatever way you look at it – this five-star property in its prime position offers great investment opportunities.”

The Bloomberg is ideally suited to the individual holiday traveller, small families and corporate vacations. A company or film crew could book the entire complex or several units.  In terms of location, it is close to the beach, bars, cafes and all the attractions that Camps Bay is renowned for. 

Seeff analysis shows that short or long term, sectional title units in Mouille Point grow 15 - 21% per annum

Seeff have on offer a R4.1m apartment in Pont du Gard, one of the older buildings in Mouille Point, which has shown 18% growth year on year over the past 6.2 years.

Seeff’s statistics division has analysed resales in 31 sectional title buildings on Beach Road in Mouille Point, which shows that they have achieved an average of 20% growth year on year over the last 5.5 years. Resales of single units within 12 months of each other were excluded, and growth rates were calculated from 2000 up to 2009/10.

The analysis focused on units resold during periods ranging from 3 up to 5 and 10 years in order to assess growth rate patterns for short- as well as long-term property investment. Great news for investors in Mouille Point is that in the short or long term, measured growth rates varied between 15 - 21% per annum.

The best performing building was found to be Henley Manor, with a growth rate of 28% per annum over the last 9.5 years, followed by Rhodora and Somerset Place - at 25% and 23% - assessed over 5.4 and 5.3 years respectively.

South Seas and Two Ocean Beach, two of the flagship apartment blocks in Mouille Point, have seen average growth rates of 17% and 15% per annum measured over the last 3.5 and 3.1 years respectively. The highest sale price recorded during 2010 in Mouille Point was R10.4m, paid for an apartment of 317 m2 in Two Ocean Beach.

Ian Slot, MD of Seeff Atlantic Seaboard, CBD, City Bowl, V&A Waterfront and Camps Bay says: “At Seeff we believe that one of the best services we can provide to the public is unemotional, meaningful and accurate sales information. This places our sellers and buyers in a position to be able to determine and evaluate asking prices, and allows buyers to assess the reasonableness of purchase prices compared to historical performance. Knowledge is power, so we are delighted to be able to provide the most accurate market information, which is constantly updated.”

Seeff agents Liza Snijman, Michael Bester and Silvia Ramsauer specialise in sectional title sales in Mouille Point, and say that older buildings offering value seem to be generating better growth. Says Snijman: “This is because they offer the opportunity of renovating individual apartments. Also, recent improvements to the common property of these buildings (e.g. erection of perimeter fencing, building facelifts, lobbies, adding a pool, improved access security systems) have also added huge value. Examples of such buildings are Pont Du Gard, Tristan Lodge and Seaways.”

Adds Bester: “We have a wonderful R4.1m apartment in Pont Du Gard, which has excellent views across the golf course and the stadium. Pont Du Gard, with its recent improvements to common property (lobby, security access system and garden), has shown excellent growth (18% year on year assessed over 6.2 years) and is very popular in terms of offering value, superb views and renovation opportunities. The same applies to Seaways, where Seeff has accounted for the past five resales (100% market share).

“It is not uncommon to pay between R25,000 and R30,000 per m2  for sea-facing units in the older blocks – which can then be renovated. For example, Seeff just sold an unrenovated front-facing property in Pajed (an older building which has seen 15% year on year growth over the past 7 years and 2 months) at R29 000 per m2. The threshold in newer blocks such as Two Oceans Beach and Mouille Sands is between R36,000 and R42,000 per m2.”

Further contributing factors to increasing growth in Mouille Point properties is the huge upgrade in the surrounding common areas – the Metropolitan Golf Course, Urban Park and beachfront promenade. However, the fact remains that the Mouille Point strip is pretty special. Says Snijman: “It is called the Platinum Mile – and is unique in that it is the only such strip bounded by Table Mountain and the ocean, with the V&A Waterfront as its neighbour. It doesn’t get much more exclusive – and more and more people want to live in this very special enclave.”

Adds Slot: “Because of the lack of space for further development in Mouille Point and the ever-increasing demand for apartments there, we can expect apartment prices to increase further, maintaining or outstripping these remarkable growth rates. I foresee an average property growth of 20% per annum in Mouille Point over the next five years – all of which makes the area an excellent investment opportunity.”

Camps Bay has experienced healthy average 14,7% year on year house price growth since 2005

Seeff property analyst Stefan Hauptfleisch has reviewed property trends for Camps Bay for the period 1 January 2005 - 31 December 2009 in terms of sales of houses in property price bands, property price growth, annual sales and monthly property price variations. This review makes for interesting reading, and shows that Camps Bay has experienced a very healthy average of 14,70% year on year house price growth since 2005.

Only one sale took place at above R30m, and that was during 2008 at R 32.250m. In the price band between R10m and R30m, 42 houses were sold from 2007 to 2009 to the value of R639 476 400.

During 2007, 12 properties in this price band were sold for R158 280 000 - an average price of R13 190 000. This figure increased dramatically during 2008,

when 15 houses were sold to the value of R239 463 400, 51% higher than the value of total sales in 2007. This caused an increase of 21,04% year on year in the average house price in the R10m to R30m price band - from R 13 190 000 to R 15 964 560 in 2008. In 2009 the average house price in this band was R16 115 200 – a marginal increase of 0,94% from 2008.

In the price band R2,5m – R10m a total of 189 properties were sold from 2007 – 2009, to a total value of R1 136 581 755. Most sales in this popular price band were recorded during 2007, with 101 houses sold (R602 710 955). This figure deflated by almost 57% to R262 153 800 during 2008, causing the average house price in this price band to decline by -1,36% from R 5 967 435 to R 5 958 041. Total sales in this price band increased by 4,0% to R271 717 000 during 2009 while the average house price increased by 2,44%.

In terms of property price growth across the board, Camps Bay homes has experienced a very healthy average of 14,70% year on year house price growth since 2005, the best year having been 2008 with 30,26% and the only negative trend being in 2009 with a very small a decline of 0.8%.

Year on Year % Growth patterns: 2005 - 2009 (all prices).    

Annual house sale value in Camps Bay reached a record high during 2007, with 113 sales to the value of R764 890 955. Of these, 56 sales (R372 840 955) took place before implementation of the National Credit Act (i.e. before 1 June 2007) and 59 (R392 050 000) after it. The Act thus seems to have had little impact on sales during 2007. In 2006 114 transactions (R713 515 171) took place.

The decline of property sales during 2008 was helped on by a clutch of increases in the bond rate. It was 13,50% on 17 August 2007 (at this stage 2,5% higher than the 11,00% at approximately the same time in 2006). On 7 December 2007 the Reserve Bank increased their repo rate once again, to 14%, followed by another increase on 11 April 2008 which forced bond rates up to 15%, then again on 13 June up to 15,5%. On 12 December 2008 banks lowered their bond rates to 15%. Hence m

oney became increasingly expensive and caused a huge decrease in property sales, together with the added impact of the NCA and a world-wide recession.

The decline in property sales continued during 2008, when only 61 sales (R 535 124 731) took place - approximately 54% less than the previous year. During both 2008 and 2009 there was an average of 5 sales per month, valued at R 42 649 583 and R 45 838 311 respectively.

Ian Slot, MD of Seeff Atlantic Seaboard, CBD, City Bowl, V&A and Camps Bay, says: “These statistics highlight what we have always known – that buying a home in Camps Bay is at all times a solid investment - and all the signs for the first quarter of 2010 are that Camps Bay is back to its winning ways.”

Upmarket Property Sales sustaining positive market growth

Prior to the World Cup in the market area of Sea Point, Fresnaye and Bantry Bay Luxury Sectional Title units, a mere 6 deals were concluded over R2.5 Mill in selling price for the month of June before the ball hit the pitch.  All the purchasers were either South African or South Africans living abroad.  Purchaser motivations vary, however, it is clear that although the housing market has been taking a bit of a dip in other sectors, high-end lifestyle flats are certainly in demand.

Of those 6 units, almost 70% sold were between R2.5 and R5 million.  Take also into factor that the Bantry Rocks Penthouse was sold for over R11 Million as an investment with plans of renovation.  This was the highest price achieved for an apartment in Bantry Bay in the last quarter. Once again only Seeff can boast this feat in a rather quiet market.

Achieving a 36% market share during the month of June, Seeff market leaders Adrian Mauerberger and Melanie Truss explain that this is not an easy achievement.  This is an increase though from their current 12-month average of 23%.  One reason these agents achieve these impressive prices and stats is by pricing their sole mandates appropriately.  “Regardless of the specifics of a property, the property that sells is the property that is priced right,” says Truss.  Of all sales concluded in this area the difference between asking and selling price were all below 10% indicating that buyers demand value above all in upmarket property sales in their areas.

Pictured above-right is Bantry Rocks, home of the R11 Milion Penthouse recent sale.