Author: Seeff, 14 February 2018, News
Luxury sectional title demand rises in City Bowl
The City Bowl sectional title market has reached the R1bn milestone mark for the year to end November 2017. The latest Propstats data also shows that on average one property sells each day while demand is on the rise for luxury units.
This sector of the market represents 50% of the total value and 70% of all units sold across the City Bowl. Ms Billy Rautenbach, Seeff’s Sales Director, says this is reflective of the trend towards convenient and secure living, not just in the CBD, but also the surrounding neighbourhoods.
It is also not just one and two-bedroomed flats, but we have recognised the rise of a luxury sectional title sector in the City Bowl, she says. Seeff has therefore taken an industry first step and now have a specialist luxury sectional title team of agents, Karen Lurie and Tamar Cheerin, both with extensive Atlantic Seaboard luxury market experience, ideal to service this growing sector.
Ms Rautenbach says this is in line with the general rise in luxury in the City Bowl. Around 370 sectional title transactions have been recorded and she says that regardless of the economic conditions, there is still plenty of opportunities for motivated sellers to still achieve good, but market related prices.
Sectional title property has not experienced the same level of slow-down compared to full title. This year’s performance is still relatively on par with the past two years and about 50% higher in value terms compared to five years ago (2012).
As the city’s skyline continues to shift and the influx of people from other areas to the metro continue, we expect the City Bowl sectional title sector to continue driving activity here, she says. Overall, the CBD represents the highest volume at about 40% of all units sold, but there is activity across all of the suburbs.
Five years ago, only a handful of units sold above R3m compared to 131 sales this year, representing about 35% of all activity, mostly in the suburbs around the CBD, she says. Popular suburbs include Tamboerskloof, Higgovale, Oranjezicht, but also Vredehoek where a number of units have sold above the R5m-R6m range. In De Waterkant, units in Harbouredge have also sold above the R5m range.
At R4.2m, Tamboerskloof boasts the highest average sectional title selling price for this year followed by Oranjezicht and Gardens at R3.1m respectively and Vredehoek at R2.6m according to Mses Lurie and Cheerin. Part of the attraction of sectional title property in the area, is that the options are quite varied with many older complexes that offer ideal renovation opportunities. Areas such as Vredehoek is particularly popular for sectional title development into trendy urban pads.
There is also high demand for security estates in the City Bowl, especially from Johannesburg and upcountry buyers, but only a limited pool to choose from according to the agents. Top of the list, is St John’s Estate (Higgovale) and La Montagne (Oranjezicht), both offering a mix of full title and sectional title as well as 8 Higgo Road. Another popular choice, is High Cape (Devil’s Peak Estate) which also offers a mix of sectional and full title.
The agents believe that the more accessible pricing along with the significant lifestyle and security benefits and continued development and growth in the downtown and city centre areas with more job and entrepreneurial opportunities opening, will continue driving strong demand for sectional title property.
Contact Seeff City Bowl, Karen Lurie and Tamar Cheerin on 021 423 9146 or visit www.seeff.com.