Cape Town – The purchasing of Cape Town trophy homes on the Atlantic seaboard has reportedly increased despite the economic effects of Covid-19, with over 160 sold in the last two years.
More than half of the 160 trophy homes, which generated about R3 billion, were bought in the first nine months of 2022, reported Business Insider.
According to Seeff Property Group, these trophy homes have been sold in the suburbs of the Atlantic Seaboard, especially Camps Bay, Clifton, Bantry Bay, Fresnaye, and at the Waterfront, the report said.
The group said although “Gauteng buyers have picked up notably over the last 5 months” and accounted for 16% of sales in 2022 so far, foreigners from Germany, UK, US, Switzerland, Austria, Finland and France still dominated the market.
Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl said that Seeff had recently concluded another high-value sale of R72m in Bantry Bay.
“Ten sales were also concluded in Oranjezicht and Higgovale in the City Bowl. In Tamboerskloof, Seeff sold eight high-value properties in The Ridge Estate, which have reached record prices of more than R16m for vacant land,” the report quoted Levin as saying.
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He said that homes valued at more than R50 million were under construction while trophy homes valued at more than R20m “sold like hot cakes in Constantia and Bishopscourt”.
This came as property experts warned against the negative impact on the property market of rising interest rates in recent months.
According to property sector strategist, John Loos, from a previous quarter’s positive growth of 5.34% year-on-year in the first quarter of 2022, the growth rate in the total value of new mortgage loans granted slowed to a negative 9.35%, BusinessTech reported.
“A slightly positive 1.42% growth rate in the “Construction” category, we believe, is still being supported more by residential developments, which is an overhang of the strong demand surge in residential property back in 2020 on the back of sharp interest rate cuts that year,
“In the post-lockdown era, residential building activity has been significantly stronger than commercial property building activity,” the report quoted Loos as saying.
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