The Atlantic Seaboard is becoming accessible to first time home buyers, through new developments offering attractive Micro and Studio apartments
Jacques van Embden, Managing Director at Blok,
The intoxicating pull of Sea Point is becoming more widespread as we see the historic strong markets maintaining their strength (the empty nester) but it is now spreading to the young professional and the starter family. This increasing demographic shift is driving increased interest in properties in Sea Point and surrounds.
At our primal core as human beings, we all aspire to feel connected to our community, our surrounds, and to lead a life of fulfilment in whatever that means to us. These are incredible natural and historic components of our identity, and the Atlantic Seaboard delivers on both; the community identity is more around a way of living which is lived by a desire to be connected, to live in an urban space, to try new things, meet new people, and to experience the Joy of Living.
Connecting to a community
This degree of lifestyle quality allows us to feel connected to a global modern world whilst still basking in the gorgeous opportunities of swimming in the ocean, running on the promenade, or taking your kids to the urban park.
The combination of the abundant natural offerings up the hill (Signal Hill, Lions Head, and Table Mountain) as well as the beaches, urban park and promenade creates a compelling lifestyle that is unique simply on a geographical level.
However, in addition to this we have excellent high street culture developing that supports a walkable lifestyle with everything within a 10-12 minute walk (at most), and further to this are excellent mobility options from MyCiti, electric scooters / bikes, minibus taxis and uber. All this means that you are truly free to live a high quality urban lifestyle that desirable global cities are so well-known for.
There has been a significant shift in priorities around what people are looking for in terms of properties and surrounds and for me, “connection” is a big one. After long periods of isolation, we want to feel connected to a city, a community and our friends, and places to live that give you this are going to become more attractive than ever.
Property prices have risen under Covid, and this speaks to the desirability and demand of the area, however, the preceding years had little to no capital growth as we were still emerging from the uncertainty and financial pressure of the President Zuma administration. Thankfully, we are now experiencing strong demand with the amount of time taken to sell properties dropping consistently and good price growth back on the horizon.
This recovery is supported by favourable Interest rates, and the last few months of high levels of stock options (an often overlooked but important part of a buyers-market). We are seeing a tipping point in supply and demand currently, meaning there is a short time left to have a great array of properties to choose from. Therefore, now is the time to buy.
Buy now! Buy Small!
As an international trend, in great urban living places, people are more interested in getting into the top lifestyle suburbs and the broader eco-system than they are about the size of their home. The facilities and living options available in an urban setting more than compensate for a smaller private home space. This is being combined with modern buildings (the most likely place to find a studio / micro) which, when well designed, include excellent amenities like rooftop pools, deli’s, gyms, and access into the community that lives in the building as well, meaning this new product market is set for major growth. Wherever there is a great modern urban space to live, compact well designed units should start to excel, which indicates that the demand for smaller units will progress a further trend for such apartments to be built in Sea Point and further into Cape Town.
These type of compact homes require focused, human centric intelligent design – all of the items that are functional have to be space intelligent whilst still delivering on great aesthetic, touch and feel to ensure that while it works, it is still pleasing to have in your home and use.
And when we consider how we expect the property price of these apartments to perform over the next 10 years, “Small home, best address” sums it up best.
Have a look at the walkthrough links below of the micro and studio apartments at ONE26 ON M and SIX on N:
ONE26 ON M
SIX ON N
From a rental property perspective, micro apartments are a fantastic investment because they allow you to enter the market at a lower capital investment compared to one or two bedroom apartments in the area. They are most comparable to one bedroom units as the number of people you can fit in the unit remains the same whether it is a one bed, studio or micro. This means that the nightly rate you can charge remains similar across those options, making the capital investment far more attractive at the micro level. Further, because of the size, it greatly reduces the rates and levies you would pay whilst still offering you the ability to rent the unit out competitively.
These units are great entry points into the Airbnb market with a cash positive outlook. The size means that your monthly upkeep costs are drastically reduced, your rates and levies are reduced and your ability to be cash positive on day one is greatly increased.
Buying the most cost effective unit in the most desirable area of South Africa ensures buyers will experience strong growth both in capital and income. The finite nature of the Atlantic Seaboard also ensures that supply remains constrained while demand continues to grow.