R300 million for a Slice of the Golden Pie

Private Property South Africa
Anna-Marie Smith

Best suited to billionaire buyers, and marketed on the international property circuit, is this luxury home built across four stands along Cape Town’s Golden Mile. Set in the wind free location of the Glen in Camps Bay, a firm favourite among Atlantic Seaboard (ASB) residents, that is likened by many to the South of France, Beverley Hills or Long Island. And so, exactly how negotiable this price tag of R300-million, that also includes international designer label fittings and furnishings is, remains unknown.

enigma

View more photo's on the Enigma Mansion website here.

First noted on the property market in an open mandate in August last year, it saw three co-operating agents reporting two offers received by December, one which was for R235-million from a Swiss buyer. Some industry professionals say even if the sale is concluded after a 30% price reduction, the sum of R200-million would be a record property price paid for this exclusive lifestyle.

It remains somewhat of a hushed topic among the elite of the ASB property industry, well known for their superior networking skills, and a preference for a disassociation from the latest gold rush in their area. However, it makes for an interesting debate among reputable agents ‘working’ the Camps Bay Golden Mile. Many who have over time witnessed private sales at the top end of the market, to be alive and well. As was seen in October last year, when what appeared as a private property sale of a state-of-the-art Camps Bay residence, was registered at the Deeds Office carrying a price tag of R198-million.

At the very least, the owners may have saved themselves a million or three in agency commission. It would also be interesting to know the ‘market’ value of this newly built house that would determine the basis of monthly rates and taxes for the next three years. If the monthly property rates for a R2.21-million house in the city totals R1 068, imagine the whopper of a rates bill that comes with homes priced in excess of R200 000.

However, say the professionals, if seen in perspective, such expenses are all relative to this exclusive lifestyle. Other hefty bills that are known to be hefty say local agents, are for the hiring of private security services. Which, in the case of many foreign property buyers and those renting exclusive holiday accommodation, are brought in from private properties in their countries of origin. And when sourced locally, top notch security services rendered by exclusive agencies is a commodity high in demand in the Mother City, only available at a premium.

When rubbing shoulders with high nett worth individuals with a personal preference for the Atlantic Seaboard, this goes hand in hand with premium class holiday rentals. Although property agents are hushed by confidentiality clauses in contracts, the media continues to draw attention to the presence of wealthy members of global societies, anchoring in our bay. Some hail from royal families and celebrity circles across the globe, with an increasing number of statesmen, politicians and private individuals from neighbouring African countries.

Properties suited to their needs are priced on average at around R200 000 per m2, for luxury penthouses, beach bungalows, homes and apartments, with top daily rentals of up to R90 000, and a record monthly rental of R140 000 for a four bedroom sea-front apartment.

Remarkable investment value resulting from unprecedented sales has continued to drive significant growth along the Atlantic Seaboard over the last ten years. The area boasts average house price growth from R3.5- million in 2004, to close to R7-million by the end of 2012.

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