Century City tops mixed-use neighbourhoods for investment
Category Expert Insight
If there is one area that you really ought to look at as an excellent property investment, it is Cape Town's Century City, says Helga Clemo, Seeff's licensee for the area. The area offers a fabulous mix of property, many in a waterfront location, top class security and many complexes offer its own amenities such as a pool, gym or spa and access to the canals for water sport.
You can literally walk to the shops, gym, church and work, and Century City must rank as the top mixed-use neighbourhood in the country, says Ms Clemo who has operated here for 13 years. It is modern with top class architecture and plenty of greenery, and Century City is an excellent alternative to the busy CBD and Waterfront, she says further.
Despite a slower market, property values have continued trending upwards with sellers still able to turn a good profit. The average apartment price is up by about 10% over the last two years and now stands at around R2,52 million.
Although not a target for first-time buyers given the higher entry price level, the area attracts a lot of young people with around 36% being Millennials, and also caters for professionals, families and retirees.
More than half of the 250ha suburb is occupied by canals, nature reserves and commercial properties. It is very green with lots of palm trees, green belt areas and spectacular views of Table Mountain. You are central to everything with immediate access to major arterials including the N1 and easy access to the airport.
On your doorstep, you will find the Canal Walk Shopping Centre, Intaka Island Nature Reserve, kilometres of canals for various water sports, a Central Park which hosts events such as the Day Market, Night Market, Full Moon Hike, touch rugby and at times, the Galileo Open Air Cinema.
Recent expansion has added new offices and apartments, retirement units, a hotel and convention facilities, and Ms Clemo says that Century City has become a sought-after address for businesses, hotels and residents alike.
Adrian Louw, sales and rentals manager for Seeff says that over R1,1 billion in real estate has changed hands over the last three years, excluding new developments and the retirement sales.
85% of sales are sectional title with the R1.8m-R2.4m price band the most in-demand. There is limited stock below R1.8m, generally only studios or small one-bedroomed apartments, says Mr Louw. Bucking the general trend, the upper end price band above R2.4m continues to trade well, provided the property is correctly priced.
In the full title sector, the R3.5m-R3.8m range is the "go-to" price point, but the upper end above R3.8m continues to attract demand. Anything below R3m is snapped up almost as soon as it comes onto the market due to scarcity.
Stock levels are robust with around 260 sales and 220 rental listings spread across all property types and price brackets, and there is a level of overpricing, hence deals are only concluded for market-related priced properties, says Mr Louw. Suspensive conditions, especially relating to the sale of the purchaser's property, is also causing a delay in transfers and affecting the pace of sales.
Aside from a keen demand in sales, there is excellent activity in the rental market with rentals concluded at upwards of R11,000/month for a studio unit to R12,000-R14,000/month for a two-bedroomed apartment depending on the complex. Top end properties now rent out at around R18,000-R28,000/month, he says.
As traffic and prices rise in the CBD area, Ms Clemo expects more people to head to Century City as an alternative. The limited land space, ideal location and quality developments make it a top investment choice, and with so much good stock on offer right now, it is an excellent time to buy, but she recommends that buyers make offers and allow agents to negotiate the best price. If they are not sure what to offer, ask your agent what a good starting offer would be.
Contact Seeff Century City on 021 200 8474 / 082 496 7987 or visit www.seeff.com.
Author: Gina Meintjes