The latest Knight Frank Wealth Report lists Cape Town as one of the top ten cities in the world to invest in, in terms of value increases. In certain areas of Cape Town, there is strong evidence to back this up, such as Camps Bay on the Atlantic Seaboard, where there is continuous development taking place.
There is currently a huge demand in Camps Bay for land or for old knock-down properties, ones where the land can possibly be subdivided into smaller plots or sectional title units built on them, says Lesley Doukas, the Knight Frank Residential agent working in this area.
Camps Bay is one of few areas on the Atlantic Seaboard that has a high variation in the zoning grades, says Doukas, with ranges from Single Residential 1 (which allows one residence on it) to GR2, which allows a developer to build group housing or an apartment building.
The average prices of properties that are being sold specifically for redevelopment, she said, is currently starting at around R5 500 per m² up to over R100 000 per m² for the land, depending on location, and while various factors have to be taken into account when purchasing land to develop, this area is definitely in need of more high end gated lifestyle developments such as The Retreat and The Crystal, she said.
The extras that could be included in developments such as these would be gyms, swimming pools, concierge services, laundromats, etc., which are sought after by many young professionals and young families alike. At present there aren’t many developments being built in Camps Bay such as those, said Doukas.
There are a few pockets of land available through Knight Frank’s Atlantic Seaboard branch which would be ideal for re-development of this kind, and are already correctly zoned, that would only add to the values of existing surrounding property there. Densification of certain areas is what the City of Cape Town is encouraging and one will find that many areas that were originally for single residential use only are now more easily sub-divisible, said Doukas.
PropStats’ figures show that sectional title units in Camps Bay have been selling at an average price of R6 304 400 over the last year, which indicates that those buying here are willing to pay for quality and the lifestyle that this area has to offer, said Lanice Steward, managing director of Knight Frank Residential. Further confirmation of the soundness of investment into property in this area is that there has been a 14% growth in values year on year on the Atlantic Seaboard, as opposed to the 13,2% of the rest of the Cape, according to Knight Frank’s research figures.