Property is currently in a buyer’s market, and many are taking advantage of this by moving over to more affordable rentals. Despite this, the R20-million super luxury Atlantic Seaboard market is at the lowest levels its been at in over a decade.
According to property group Seeff, the Atlantic Seaboard encompasses areas such as Clifton, Fresnaye, Bantry Bay and Camps Bay. There are approximately 200 listings available in the area, and thus far, only four properties have been sold. This is its lowest level in a decade.
“Whereas the low- to middle-income sectors are seeing a notable uptick in activity on the back of pent-up demand, the top end is heavily influenced by sentiment which is at an all-time low according to the latest RMB/BER Business Confidence Index (BCI),” Seeff said to BusinessTech.
According to Ross Levin, the managing director of Seeff Atlantic Seaboard and City Bowl, during the boom period between 2016 and 2017, the market was closing five sales per month in the R20-million-plus sector. During this time, prices reached between R80-million to R120-million in Clifton.
In 2019, a Fresnaye property fetched R60-million. This year, the highest-priced property sold on the Atlantic Seaboard was a Camps Bay home, which fetched R34-million.
“With no real price movement in the super prime sector, this is arguably one of the best periods for ‘bargain hunting’ that we have seen in the last decade,” Levin said.
Property data group Lightstone predicts the luxury property market will continue to suffer as lockdown continues, and those in the industry will have to adjust how they work to accommodate for these uncertain circumstances.