Luxury downsizing drives record Cape apartment sales and prices
Cape Town’s Atlantic Seaboard is breaking records as luxury downsizing fuels a surge in apartment sales. High-end units over R20m are in demand, prices per sqm have hit new highs, and international as well as local buyers are competing for scarce stock.
The shift to luxury downsizing for the convenience of a lock-and-leave lifestyle has seen buyers and investors flock to high demand areas such as Cape Town’s Atlantic Seaboard, with a 30% rise in the number of apartments sold over R20m this year, says Ross Levin, licensee for Seeff Atlantic Seaboard.
Some 22 apartments priced over R20m have sold (vs just 17 units during the same time in 2024). The Waterfront (8 sales) leads with the highest number of R20m-plus sales, followed by Camps Bay (4), Clifton (3), Mouille Point (3), Bantry Bay (2), and Granger Bay (2). Levin notes that we are now also seeing more high value sales in areas such as Mouille Point (Beach Road), and Granger Bay (mostly at The Waterclub).
Across the whole Atlantic Seaboard, a total of 329 apartments has sold across all price bands worth a combined R2.4b, and at an average price of R7.2m, which is up by 14.2% from last year. The rate paid per square metre (the usual pricing method for apartments) has also hit a new record high of R170,000/sqm from around R160,000/sqm last year. Only 7.7% of sales are now below R2m, mostly in Sea Point, Green Point and Mouille Point.
Often likened to Monaco for the scenic location between mountain the sea and cosmopolitan lifestyle, the high demand and limited land space has driven apartment prices to new record highs, especially those with waterfront locations or good sea views, says Levin.
A record price of R65m was paid this year for an apartment in Bantry Bay (The Aurum). Additionally six sales at the Waterfront ranged from R22m-R40m, a Camps Bay penthouse (Barley Bay) sold for R36m, two apartments at R24.5m and R24m sold in Clifton (Clifton Views), a unit sold for R27m in Granger Bay (Ellstree/Waterclub), and two apartments in Mouille Point sold for R25m and R23.5m (Two Oceans Beach and Thermopylae).
The market has attracted a mix of local buyers, those semigrating from Gauteng and KwaZulu-Natal, and international buyers, particularly from Germany and the UK. The Atlantic Seaboard and City Bowl area is also the top choice for Airbnb investments given the high demand for holiday rentals, and attractive returns.
The Waterfront has been particularly active with at least 8 high value sales this year. Kim Bendall Bailey and Finella Botes from Seeff Waterfront, say there is now a shortage of stock with listings at the lowest in over a decade, especially below R15m. Property owners are holding back mainly due to high replacement costs.
Waterfront apartments are selling for over R130,000/sqm, especially those on the Front Yacht Basin with unparalleled views where high-end units reach R20m to over R40 million. The Waterclub in Granger Bay, a prestigious marina setting, now sells from R120,000/sqm with some units topping R20m. Mouille Point is most active in the R7m to R10m range, with top buildings selling from R70,000/sqm, although two units have sold for over R20m this year.
Sectional titles in Camps Bay are mainly sought for investment purposes such as Airbnb which offers lucrative returns, or as holiday houses. Stock under R8m is, however, scarce and sells as soon as these come onto the market, according to Lyn Pope and Edith Marsh from Seeff Camps Bay. Properties priced over R18m are seemingly performing better.
Adrian Mauerberger and Bryan Ginsburg from Seeff Atlantic Seaboard cite similar challenges with a scarcity of stock in the R5m – R13m range and a marked increase in rates paid per square metre as a result. Sea Point prices are up to R60,000/sqm (from R45,000/sqm), and Bantry Bay now sells from R70,000/sqm to R150,000/sqm for prime waterfront units. Strong demand is coming from families downsizing, semigration investors, and second homes from international buyers
Additional record-setting Bantry Bay deals include achieving the highest rate of R170,000/sqm for an apartment, notable sales of R45m and R50m and R120,000/sqm at The Bantry, R115,000/sqm at The President and R100,000/sqm at Station House in Fresnaye/Sea Point, as well as impressive figures for The Cosmopolitan and Le Chateaux (though with larger terraces and balconies).
Apartments in the R2.5m – R5m range across the Atlantic Seaboard are literally flying off the shelf such is the demand from international buyers, expats, and locals, but these are also in short supply, thus offering opportunities for sellers, according to Hilary Biccari and Lolly Unterslak from Seeff Atlantic Seaboard.
Overall, Levin says the market is buoyant. Sellers are achieving good prices, on average 93.3% of their asking prices with units below R5m -R13m achieving within 95.4% of asking prices, and often selling for just about or full asking price.
Issued by Gina Meintjes
