A tract of land of around 2 500m2 is for sale in Clifton, priced at R70 million (R28 000/m2), including VAT.
|A view of the site (outlined with a dotted line).|
Land is at an absolute premium in the suburb, says Seeff's luxury market specialist, Lance Cohen.
'There is almost no land available in Clifton, Bantry Bay, Fresnaye and Camps Bay - and, certainly nothing of this size or location in Clifton,' he says.
In the past three years, for example, vacant land sales across all Atlantic seaboard suburbs have accounted for only 26 or 1 percent of property sales for the company. The sales added up to R170m.
When a rare piece of land does come on to the market, it is snapped up quite quickly, says Cohen, who recently sold a 1 242m2 plot in Nettleton Road, Clifton, for R35m (R28 180/m2).
He also sold a bungalow on a 178sqm plot for R17m, to a buyer who wants the location and intends to demolish the bungalow and build a beach house.
Clifton is widely regarded as the most valuable strip of residential real estate in the country, with an average price of about R17.5m. Most properties in the suburbs are flats or houses on relatively small plots compared with Bishopscourt and Constantia, for example.
The value of property here is determined largely by the scarcity of land, the location and the views, so property values continue to appreciate each year, says Cohen.
'Before the 2007/8 downturn, for example, the average price in the suburb was about R9.8m. Since then and, despite the subdued economic climate, it has more than doubled.
'The country's second- most expensive suburb is Sandhurst, which borders the Sandton central business district - now rated the most expensive square mile on the continent - and the average house price there is R13.9m.
'Homes in Sandhurst are on large plots of 4 000m2 to 7 500m2, whereas Clifton homes are mostly on much smaller plots of around 700m².'
This put the average price difference into perspective and underlined the value of property in the suburb.
Clifton comprised only 230 freehold properties and 422 sectional so buyers are prepared to pay a premium for luxury flats here. On the seaside drop of Victoria Road, for example, a 385m2 flat went for R45m (R116 883/m2). The site could also appeal to private buyers who want to build a luxury home.
'Possibly the most appealing option would be for a buyer to build a small, luxury, sectional title development with three to five units and occupy one of these.
'A key advantage of this is that the buyer as developer could claim the VAT relating to various stages from the South African Revenue Service - from the acquisition price to the development costs.
'The profit on the sale of the other units would significantly reduce the development cost. The buyer would then own a magnificent Clifton home with the potential for significant growth in value.'
'Buyers often pay millions for older homes to secure a good location and then redevelop or demolish and build their dream homes. Even garages can sell for up to R2.5m.
'This particular site for sale occupies a prime location with sea views. It consists of three plots, of 525m2, 643m2 and 1 333m2 and slopes from Kloof Road down to Victoria Road.
'The back plot on Kloof Road is landlocked, accessible only by means of a funicular from Kloof Road or from Biskop Steps. To unlock its value, it is linked to the other two sites, enabling the owner to create parking and access from Victoria Road.'
Weekend Argus (Saturday Edition)