Mouille Point – the fairy tale success of the Atlantic Seaboard

Mouille Point – the fairy tale success of the Atlantic Seaboard

ATLANTIC SEABOARD CINDERELLA: In the past decade Mouille Point has transformed from the poor relation on the Atlantic seaboard to the platinum mile, a sought-after beachfront suburb

A decade ago Beach Road between Sea Point and the V&A Waterfront was lined with old, characterless apartment blocks interspersed with dated houses, but these days Mouille Point is a transformed suburb, proudly ranking alongside its more illustrious Atlantic seaboard neighbours.

Now referred to as the platinum mile, Mouille Point property comprises modern luxury apartments with spectacular sea and mountain views, with purchase prices in the same league as Clifton and The Waterfront.

While it is still occasionally possible to find an apartment for under R4 million, most are now in the R6m to R10m bracket, with top-end prices breaching R100m.

Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty, says: “In 2007 fewer than 10 apartments changed hands in Mouille Point and the average sale price was R1.76m.

“By the end of 2016, the average apartment price had risen to R7.32m with Propstats records showing 42 sales for the year with the highest price achieved R35.25m on a property that spent just 30 days on the market.”

Geffen says the suburb’s upward trajectory shows no sign of abating despite the flat national economy.

“Since the beginning of 2017, 14 apartments have already been sold in Mouille Point at an average price of R8.9m with an average listing time of just 39 days.”

Richard Todd, agent in the V&A Waterfront and Mouille Point for Lew Geffen Sotheby’s International Realty, says that property values in the area have spiked, and the difference between asking and sale price has reduced significantly.

“In 2010, the difference between the marketed price and eventual sale price was a respectable 10.9% but by 2016 this figure had dropped to 4.8% with the gap reducing even further this year to 2.9% in the first quarter.

“Market data reveals that about 70 property transactions were recorded annually in the suburb over the past four years, with 2016 sales amounting to just less than R355m. About 90% of these sales were below R10m, and of the remaining 10%, three sales were properties priced above R20m.”

The price a square metre in the suburb has also risen steeply, says Todd, with the highest prices being for the sea-facing properties on Beach Road, where homes in apartment blocks like Aquarius and Mouille Sands now cost around R74 000/m² and other like South Seas command up to R87 549/m².

Many are older blocks that have been upgraded and renovated and several are newly built, offering buyers modern and luxurious lifestyles with unsurpassed views as well as proximity to the CBD, Atlantic seaboard beaches and the waterfront.

The agents say the most sought-after apartments are those at entry to mid-level, which are also the most difficult to come by as they are excellent investment properties for taking advantage of the active rental market in the area.

Last year the buyer demographic mirrored that of 2015, with around 85% of the buyers in Mouille Point being South African and predominantly from Gauteng. However, a noticeable trend shift is that an increasing number of foreign investors are from other African countries rather than from Europe.

No longer a drab suburb en route to the Waterfront, Mouille Point now also has many world class eateries and the seafront has become a popular extension of the Sea Point Promenade that attracts walkers, cyclists and dog lovers to the lawns and paths that hug the coastline, as does the inviting green space that is the new Urban Park.

Geffen says: “Accessibility to top class amenities, a conveniently central location and luxurious accommodation in a secure environment will ensure that apartments on this prestigious strip will always be in demand.

“The greenbelt of the urban park surrounding the Cape Town Stadium also adds substantial value to Mouille Point’s properties, because this land is unlikely to be developed in the near future. And being able to stroll across to the golf club on the green is also a distinct plus.”