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Cape Town’s luxury homes still offer ‘great value’
Category Property News
A shift in the seemingly bullet-proof Atlantic Seaboard rental market a year precipitated a steady rise in stock levels and vacancies for the first time in almost a decade
Spiralling living costs have seen South Africans tightening their belts in recent years, especially in Cape Town where residential property prices and utility costs have also soared, but when one compares the Mother City to London, Steve Thomas, Lew Geffen Sotheby’s International Realty Franchise Manager in False Bay and Noordhoek, says investors still get a lot more bang for their buck on all fronts. Especially in the luxury market in which Cape Town outperformed many international counterparts last year.
“In the article below we compare three similarly-priced properties - one in Camden, London, and two in Cape Town in Noordhoek and Bantry Bay, he says.
Cape Town luxury real estate still tops when comparing apples with apples.
The cost of living and the price of residential property has risen exponentially in recent years, but at the end of the day, rand for rand - or pound for pound - Cape Town still offers global investors an exceptional lifestyle and far ‘more house’ for their money than most of its international counterparts.
“Despite our political woes and subdued economy, in March last year, Cape Town’s luxury property market was ranked second on the Prime International Residential Index, which tracks the value of luxury homes in 100 key locations worldwide,” says Thomas.
“In comparison to other sought-after destinations such as London, the Mother City certainly delivers - not only on floor space but prime location options and on additional bells and whistles.”
If one had the equivalent of around R30 million to spend, what could one buy in these cities?
In London, you could snap up a three bedroom semi-detached terraced house in a conservation area in characterful Camden, only a stone’s throw from the market and eclectic shops and restaurants, says Thomas.
The house has a small quaint kitchen with marble countertops, a separate laundry room, guest cloakroom, shower room and one full bathroom. There is a small, pretty back garden to enjoy on summer days and the green open spaces of Regents Park and Primrose Hill are also nearby. On-street parking only.
For just R3 million more in the charming seaside village of Noordhoek, you can buy a spacious modern five bedroom house at the foot of Chapmans Peak. Set against a mountain backdrop, this brand new designer home boasts spacious open-plan living in three separate, split-level units, all with spectacular views of the ocean.
It has a large modern open-plan kitchen with centre island, scullery and a serving unit with griller off the dining area. All the bedrooms are en suite, with one opening onto the decked terrace and another onto a large sea-facing balcony. A sizeable wooden deck with a swimming pool offers panoramic views, and an outside shower is conveniently positioned for rinsing after a swim or long walks on the beach.
However, Thomas say if you do want to be closer to the urban heartbeat, then little can beat a penthouse in trendy Sea Point on the exclusive Atlantic Seaboard.
For R33.5 million, you can buy a sea-fronting four bedroom en-suite penthouse in Sea Point built over two levels with breathtaking views and an entertainer’s dream patio and pool.
“London could definitely be considered the more exciting destination with its multitude of restaurants and entertainment options, but Cape Town holds its own as a culinary haven with an array of world-class eateries, and very little can match the natural beauty of our beaches and mountains,” says Thomas.
He says Cape Town’s standard of living is also generally much higher than London, while the cost of living here is around 50% lower.
Although Cape Town’s property prices have been in an adjustment period for almost two years, the city’s luxury property prices increased by almost 20% in 2017, which is well above cities with comparable markets such as Aspen (19%), Amsterdam (15%) and Seoul (13.2%). The Chinese city of Guangzhou led the rankings last year, with prime prices up by over 27%.
“At the end of the day, lifestyle is a key factor when deciding where to buy property, but very few destinations offer the same quality lifestyle as the Mother City, and as wide a range of property options which all have two things in common - sizeable floor space and premier locations,” says Thomas.
Author: Lew Geffen Sotheby's International Realty
