Although the Camps Bay market has responded predictably to the prevailing socio-economic climate with lower sales volumes across the board, it has proven more resilient than most comparable areas this year with a 1.88% increase in the average house price and a diminishing gap between asking and selling prices.
In 2017, the average house price of R16.46 million was 11.3% lower than the marketed price and this year, the average selling price increased to R16.77m which was just 9.6% lower than asking price. Although sectional title prices dipped from R14.29m to R10.36m, the difference between asking and selling prices decreased from 10.2% to 8.4%.
Brendan Miller, CEO of Lew Geffen Sotheby’s International Realty, says: “These Propstats figures clearly demonstrate that, although the market here is not immune to the slower economy, it has certainly held its own. And one mustn’t forget that it’s also in a natural price correction phase which is part and parcel of the real estate cycle.
“Camps Bay remains sought-after as it offers investors a wide choice in properties with its 60/40 mix of freehold and sectional title homes in an exclusive setting, a unique lifestyle and long-term investment value. “The suburb also has an advantage over its immediate neighbours in that most of the houses are set on sizeable stands.
“And, with the beach’s Blue Flag status and vibrant beachfront strip, Camps Bay is the suburb that first pops to most foreigner’s mind when they talk about Cape Town.”
Miller says that they are still receiving an encouraging number of enquiries from foreign investors despite the controversial land expropriation issue.
According to Farrah Mia, Area Specialist for the agency, there is also still considerable interest in big-ticket properties, both locally and on the international website as foreign buyers know they would pay at least three times the price for similar homes in comparable international destinations.
“We are currently marketing two contemporary designer homes, both with private cinemas and state-of-the art bells and whistles, which would not be out of place on the Riviera but at a fraction of what it would cost to buy there.”
Last year, Miller achieved not only the highest Rand per square metre on the Apostles side of Camps Bay but also the highest sale price by an agent when he brokered the sale of an 854.4m² state-of-the-art home for R47 million including vat at R55 009 per m².
“Camps Bay has continued to set records since the downturn and properties, for the most part, have retained excellent value. It is also considered by most to be a solid long-term investment as evidenced by Lightstone data which shows that over 50% of the existing owners have owned their homes for 11 years or longer.”
Miller adds that the suburb also attracts many investment buyers as it remains one of the most desirable holiday destinations in the country, attracting both local and foreign tourists.
He concludes: “Camps Bay’s appealing synergy of opulent glamour, relaxed beach lifestyle and traditional family values along with its variety of property options continue to underpin the market in this scenic oceanside enclave.
“And with very few remaining opportunities for further development, property in Camps Bay will remain a very attractive investment.”
ON TOP OF THE WORLD: An exceptional six-bedroom designer home perched on the slopes of Camps Bay, boasting stunning views of its internationally renowned coastline and Lion’s Head. On the market for R77.5m, this multi-level home features an internal lift, cinema, gym, pool and rooftop deck.