Camps Bay springs to life
The property forecast for the cosmopolitan suburb of Camps Bay in Cape Town is positive, despite the high asking prices of homes there. ROXZANNE VAN EYK investigates
POSITIONED between the mountain range of Lion’s Head, Table Mountain and the Twelve Apostles, Camps Bay sits comfortably in affluent status next to its exclusive neighbouring areas.
The outlook for the Camps Bay property market is positive. This market confidence comes at a time when property interest and sales activity in the area is traditionally slower. During the winter months, that is.
Ian Slot, MD of Seeff Atlantic Seaboard, City Bowl and CBD, says: “The residential market in Camps Bay at present is extremely bullish — we have sold seven properties so far this month, and this is supposed to be our quiet time.
“We are extremely short of stock, as generally sellers are waiting for spring/summer to market their properties. The demand for property in the area continues to outweigh the supply,” he says.
Most agents confirm that the entry-level price for a freestanding home in Camps Bay is around the R4,5m mark; however, such a place would require renovation. A mid-level home, on the other hand, would sell for about R6m whereas top-end homes sell from around the R20m mark.
Alan Meyer, area specialist at the local Chas Everitt International office, says that Camps Bay is characterised by full-title homes, with very little available in the sectional title sector. “Apartments and townhouses sell very fast when they come onto the market, especially if they are priced at around the R2m mark, which will typically buy a one-bedroom apartment with a view,” he says.
Laurie Wener, Pam Golding Properties director and area manager for the Atlantic seaboard, says that there are also a few new developments on the market, consisting of two to four houses or townhouses, which are priced from R9m to R12m.
Knowledge Factory’s SAPTG website indicates that full title homes in Camps Bay have shown a one-year growth trend of 11,11%, a three-year trend of 18,24% and a five-year trend of 25,95%. SAPTG also says that there were increases of full-title transfers as well as average selling prices from the period 2005-06 to 2006-07, with 89 transfers at just more than R4,5m to 105 transfers at just more than R5,3m.
Sectional title homes in Camps Bay, however, recorded a decline of 5,75% over the one-year growth trend, according to SAPTG. However, the three-year and five-year trends were both buoyant at 23,44% and 26,13% respectively. SAPTG records that the average selling price of sectional title units dropped from R2538049 to R2379317 over the last year.
As vacant land is in short supply, a prevalent trend in the area is for buyers to purchase homes with the intention of either renovating or demolishing the home to some extent, or entirely. Steven De Lit of ReMax Living says that 25% of the houses in Camps Bay are in excellent condition, while the rest are “either partly demolished upon purchase or totally demolished”.
Wener said that while there have been a few cases where older homes have been demolished and rebuilt entirely, buyers are tending to rather carry out extensive renovations.
Another more recent trend is to subdivide existing properties and develop two homes on the stand. Meyer says that these types of units usually sell for about R7m and are typically three or four-bedroom homes with double parking. He also says they are often built as multistoreys to make optimum use of space.
Slot says that subdividing a property is a lengthy process in that the single-title deed restrictions have to be lifted.
“However, as there is such a shortage of vacant land in Camps Bay, developers are prepared to go through the process.
“Alternatively, homeowners who have substantial properties are initiating the process in order to add value to their property when they eventually become sellers,” Slot says.
It appears as though Camps Bay appeals to a wide range of buyers. Meyer says that an increasing number of expats are now investing in the Camps Bay property market, and they are joining the ranks of traditional investors from Germany and the UK. “There is also a new breed of investors from other parts of Europe, such as Russia, France and Italy. On the local front, the area is still attracting buyers from Gauteng, but increasing numbers of buyers from other parts of the country, notably KwaZulu-Natal, are also making an appearance,” Meyer says.
Wener says the demand is coming from residential buyers intending to live in the suburb, as opposed to investors.
Agents disagree on the likely future trends in the Camps Bay property market.
De Lit says that the market will slow down due to high prices, but there will always be demand due to the “vibe in the area”.
Seeff is confident that the growth potential will continue — definitely for the year ahead.
Pam Golding Properties is anticipating a bullish market, with demand continuing to outstrip supply.
“As a result, we expect that prices will at the very least remain steady, with an increase in the spring,” says Wener.
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