Despite sluggish sales during 2020, interest in the luxury residential market has surged over recent months, making the market outlook for high-end properties favourable. Andrew Golding, Chief Executive of the Pam Golding Property Group, says much of this demand has been driven by local buyers who have identified specific areas of interest and understand that the current market, characterised generally by motivated sellers and well-priced stock, presents opportunities which offer exceptional value for money. Golding says freehold homes in the overall market have benefited from lockdowns and the shift to remote working as there has been 6.2% price appreciation since the start of the year (January to September 2021) compared to 2.8% for sectional title homes. The upswell for freehold homes is also evident in gated communities.
“We’ve seen a notable increase in demand for high-end properties listed above R10m on the Cape’s globally renowned Atlantic seaboard, particularly prime real estate in upmarket Camps Bay and Clifton, where recent high-end properties transactions concluded by our agents extend to homes achieving individual prices of R70m,” he says.
Activity isn’t limited to the Cape as movement in the upper price band in KwaZulu-Natal has also experienced an uptick. Durban North and Umhlanga are seeing activity split between sectional title schemes on the beachfront and freestanding homes in and out of estates. Further north in the Ballito area, in Zimbali Coastal Estate and Simbithi Eco Estate, homes valued in excess of R10m and even more than R18m are changing hands. According to Brett Botsis, Seeff licensee for Umhlanga, heightened semigration trends following the lockdowns also increased interest in high-end properties. Many high-net-worth individuals are buying property close to the beach and some with hefty price tags. Due to its top amenities, safety, cleanliness and proximity to good schools, Botsis says Umhlanga is an ideal location for families.