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Green Point average house prices rise by more than R1.3 million
Category Property News
The average price of freehold properties in Green Point, with its quaint Victorian cottages and modern conversions, has risen by more than R1.3 million year-on-year as buyers are prepared to pay a premium for homes in this coveted suburb just minutes from the CBD.
According to Propstats, the statistical data service set up by the Western Cape branch of the Institute of Estate Agents, 29 houses were sold in the suburb in 2013 for a total of R112.212m. The average house price was R3.869m.
Last year there were three fewer confirmed house sales in Green Point, but the 26 houses that did change hands earned owners a substantial R135.215m and the average price of properties rose to R5.2m.
The most expensive house sold in 2013 was a free-standing double storey home on Ocean View Drive that was listed at R8.9m and sold for R8m cash, after being on the market for only 12 days.
The home has four bedrooms, four garages and two parking bays.
Last year, according to Propstats, the highest price achieved was for a five-bedroom older house that was sold for R8.5m cash just 13 days after listing.
According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, these two sales are typical of the area, because on the Atlantic seaboard cash property sales are the norm, rather than the exception.
“In our experience more than 80 percent of property transactions across all suburbs in the area are cash, which is at least 30 percent higher than the average across the rest of South Africa where most people buy homes with bonds.”
Geffen says the most desirable locations in Green Point to buy houses, and where the most expensive properties are often to be found, are Springbok Road, Merriman Road and Ocean View Drive – all three high up against Signal Hill with magnificent views across the Cape Town Stadium, Mouille Point and Table Bay.
“Houses in those streets command premium prices. Some are on the market for more than R10m and I believe this year in the current seller’s market they will achieve their listed prices, or close to them.”
He says last year the average price of houses sold in Green Point was R5.2m, but most houses are on the market this year with list prices above R6m.
“You can still find the odd unrenovated two-bedroom period cottage for between R3m and R4m, but most are being marketed for between R6m and R12m and there are properties for sale for up to R24m.
“Green Point used to be one of the most affordable areas on the Atlantic seaboard, but its location next to the CBD and the stylish bars and restaurants of De Waterkant now makes it highly desirable for younger, trendy buyers who don’t want the hassle of fighting rush hour traffic and want the convenience of city living right at their doors.
“The opening a couple of years ago of an Atlantic seaboard Reddam House in the suburb has also made Green Point extremely attractive to families who want good schooling for their children. The school offers classes from pre-primary to matric, so once a child is admitted as a pupil parents are generally reluctant to give up that coveted place in the classroom by moving.”
Geffen says although house prices in Green Point are increasing rapidly, the suburb remains extremely good value for money.
“Just down the road in the V&A’s Front Yacht Basin prices for certain apartments rose above R90 000/m² last year, but not one house sold in Green Point in the same period for more than R30 000/m². Because the houses are generally older they also have larger rooms, so you tend to get far more space for your money than you would in newer suburbs.”
Geffen says Green Point is an increasingly good investment prospect, and arguably presents the best value on the Atlantic seaboard.
“There is limited residential space in Cape Town’s CBD and far greater demand than there is supply. That spill-over of people wanting the city lifestyle is a large wave crashing into De Waterkant, the Waterfront Canals and Green Point, and now is the time to get into the market because prices will only go up.”
Author: Lew Geffen Sotheby's International Realty