Mouille Point has been quietly transforming into the next millionaire suburb of the Atlantic Seaboard with top end apartment prices climbing notably over the past three years and the R100 million price mark not unusual for a top end new build.
Billy Rautenbach, sales director for Seeff Atlantic Seaboard and City Bowl, says where it was once somewhat run-down, it now ranks among the most sought-after areas. The location, almost adjacent to the V&A Waterfront area is a massive boost for the rising demand and prices that buyers are prepared to pay, she says.
Ms Rautenbach says top class apartments in new developments are currently on the market in the R40 million to R120 million range.
These are generally ocean front developments with luxury finishes and some of the best views in the country.
In addition to locals, buyers from areas such as Johannesburg and Pretoria along with African and offshore buyers are drawn to the suburb.
According to Seeff, Mouille Point is one of the fastest growing areas of the Atlantic Seaboard and now ranks alongside the V&A Marina, Clifton and Bantry Bay for luxury apartments and the prices that buyers and investors will pay.
That said, Ms Rautenbach adds, prices still vary and you can still find the odd apartment in Mouille Point in the R2 million to
R4 million range, but most are now in the R6 million to R10 million price range, with top end prices reaching as much as R120 million.
The suburb comprises mostly sectional title apartments, many older, but being upgraded, with new developments transforming the neighbourhood.
About 40% of properties are investment and second homes, although the number of residents are increasing as residential demand increases.
Market data shows that around 70 property transactions were recorded annually in the suburb over the past four years, with 2016 sales amounting to just under R355 million at an average price of R6.7 million.
About 90% of all sales were below R10 million with only about 10 sales above this, including three sales above R20 million.
On a cost per square metre basis, the bulk of sales are still in the R30 000 to R70 000/sqm range. Prices on Beach Road though have reached R74 289/sqm (Aquarius), R74 324/sqm (Mouille Sands), R75 357/sqm (Fortuna), R83 621/sqm (South Seas) and R87 549/sqm (Two Oceans Beach).
Last year’s sales were concluded at an average difference between the asking and selling price of just 4.8% and for on average within just 26 days on the market.
The pace of sales has quickened further this year with the average gap between the asking and selling prices dropping to just 2.9% and the average time on the market, to just 16 days.