The surge in demand for sectional title properties in Cape Town experienced in 2014 is set to continue in 2015. Sales within the sector, specifically in the Atlantic Sea Board and City Bowlarea, gained momentum throughout 2014 and show no signs of slowing down.
This is according to David Rebe, CEO of Sandak-Lewin Property Trust, who says now is a good time to buy property in the Cape Town area as the sector is experiencing an upswing and is nowhere near slowing down.
He says the sector in Cape Town is heading towards a property boom and prices will continue to increase by approximately 5% to 10% per year in the next few years.
Due to the increase in volume of levy clearing certificates issued, he says they can confirm that the number of sectional title sales is increasing in the Cape Town area.
Rebe says the Atlantic Seaboard and the City Bowl are the healthiest areas in the Western Cape to buy property in at the moment. In terms of retaining value, these areas have been resilient through the downturn in the market, which began in 2007 as a result of the financial crisis.
He says this is mainly due to the demand for property in these areas exceeding the supply. Other contributing factors to the increase in sectional title dwellers in the CBD include increased traffic congestion and longer travel time into the CBD from the suburbs, convenience and 24 hour security, which most apartment blocks in the CBD and Cape Town area offer, he says.
“As a result of the upswing, a number of new developments are being built in the Atlantic Seaboard and the City Bowl areas, and these developments are selling out quickly, some only a few days after launch, with delivery scheduled in over a year’s time.”
Rebe says in terms of sectional title property rentals in the CBD area and surrounding suburbs, they are being sold and let out quicker than ever before. He points to the Cape Town Central CityImprovement District’s (CCID) second annual residential survey released last year, which revealed that Cape Town residential property investors provide half the accommodation in the city centre.
As a result of the demand for sectional title rentals, property owners have been cashing in on the booming rental accommodation market and will continue to do so in 2015, as the demand is allowing them to maximise the rentals and charge tenants as they see fit, he says.