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“Can you repeat that?” I ask only to hear it again. “I’m valuing at 900 000 Rand” or US$150 000. Her voice sounds like music. The estate agent hands me her card, again, “Are you selling? I always have clients looking for this kind of property.” Am I selling? In my excitement I start to wonder if I should. I paid $53 000 for this 2 bedroom apartment two years ago. That isn’t too shabby of a return. Will this price hold? Should I get out now? The experts say yes and no. Properties gurus are saying that values are not only stable but will continue to grow; don’t sell.  This was my appraisal experience a few months ago and I know that most property owners in Cape Town have had a similar experience. With 40% as the average increase in apartment values last year, owners are smiling. The explosion in the residential market especially on the Atlantic Seaboard in recent years has been extraordinary and staggeringly continues to climb.

As you descend into Camps Bay, this is the first building you see. Separate units, all overlooking the sea with exquisite finishing’s and are rented out during the year.

Living in Cape Town - Voted the best foreign city in the UK's 2004 Telegraph Travel Awards, Cape Town is an extraordinary city. Its physical beauty is unrivaled and is accurately described as a lifestyle destination. The rugged mountains present natural playgrounds resembling artist rendered backdrops that also have practical, rich soil. The mountain sides have become cultivation havens and a wine estate luncheon is never more than an hour’s drive away. In Cape Town, dilemmas often begin with choosing a beach. Which stretch of white sand, near which rocky cove or kelp forest should I admire beautiful people on today? Eating too becomes complicated. It isn’t easy to choose one of the countless restaurants ranging from African to Japanese cuisine. Eateries, boutiques and private homes are tucked into every corner of the mixed architectural styled city. Renovated art-deco buildings in city squares, colorful close knit 2 storied homes with views of Table Mountain and the sparkling city at night. Neo-classical and Cape Dutch cottages amongst pomegranate and avocado trees, beach bungalows and cliff perched mansions with views to Antarctica. There is a style to suit everyone here. The truth about Cape Town is that people know how to live and play here. So hurry up and purchase your little - or large piece - of paradise! Space between mountain and sea is going fast! 
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Camps Bay on a weekday afternoon. The incredible 12 Apostles Mountain Range is in the background.

A Klein (little) History of the Cape - How did this isolated tip of Africa, occupied with lions, hippopotamus and nomadic tribes become this modern, cosmopolitan place to live? In the beginning when Jan Van Reeibek and his ship, Drommedaris, arrived from Holland in 1652, no one could have imagined how fast word of the klein settlement would spread. The vessel and its occupants had been sent on orders by The Dutch East India Company to establish a provisions stop for passing ships. Soon enough scores of passers-by were stopping in for fresh food and rest at the ‘Tavern of the Seas’. The Company’s men made quite a success of the Cape. In fact, it was such a sensation that many never wanted to leave. Exactly how I felt when I arrived! History, it does repeat itself. It didn’t take long before Dutch, French, English, Malay, African, Scottish and Eastern European peoples were populating Africa’s most southern shore. It also didn’t take long for the land to become valuable.

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Along with worth and title, came wars and political struggles. Fierce battles of both physical and tyrannical forms ensued making the beautiful country an undesirable place to live for many. In brief, explaining why hundreds of thousands of South Africans are scattered all over the globe today. For decades, South Africa was left to its own devices and internationally unaccepted policies, resulting in a very unstable economy and weak currency. In 1994, when South Africa ended apartheid and had its first democratic election, a wave of change and stability began to roll in. While there is still a lengthy road ahead for this country, change is consistent and for the better. Today’s hot property and development markets are only a few examples of this positive change. Multi nationals like BMW, Toyota and Mercedes are making considerable commitments demonstrating a high level of confidence in the country. Today, 11 years into the new South Africa, 1 US dollar will buy around 6 rand. (The exact rate changes daily) There was a time when the dollar stretched much, much further. This stable and continued growth can only be attributed to South Africa finally bearing the fruits of peace.
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The Atlantic Seaboard - The property boom that has held South Africa’s breath for the past 5 years is best exemplified along Cape Town’s Atlantic Seaboard. For those in the know, this area starts in Green Point and ends in Camps Bay. There are dozens of delicious spots in-between with unbelievable real estate. For those who have not yet had the pleasures of Cape Town, believe me when I tell you that you want to come and discover what everyone is raving about. Nearly every day, those of us living on the Atlantic side of the Cape Peninsula, are privileged to watch breathtaking sunrise and sunset shows. We live in what has become some of the most exclusive places in the world to own a home.

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Premier views, top quality houses, cosmopolitan communities, world class beaches, first class restaurants, indigenous and rare nature. It is these elements and more which call out to people from all over the globe demanding that they come to play on Cape Town’s Atlantic Seaboard. That call is heeded, notably over the summer months of December, January, February and March. This is the busiest time of the year for estate agents as visitors arrive and decide to stay. Not a novel concept to the Cape, people like me have been doing it since 1652. 

Space is Limited - Between the foreign visitors and South Africans, there just isn’t enough of the Cape to go around and this contributes to property values going up. If construction could go up; up the mountainsides that is, there would be a lot more plots to go around. However, there is a construction line on the mountains, above which no building is permitted mostly to protect the 8,000 plant species. (South Africa’s flora represents 10% of all the plants on earth!) The environment is cared for here which explains why a nature reserve marks the end of the residential zone along the Atlantic Seaboard. The availability of property is never going to increase, space is limited. Every day, more and more South Africans are returning to South Africa, international visitors arrive and decide to stay, the local economy is thriving and the demand for these prestige properties continues to go up. 
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Buying Property on the Atlantic Seaboard - So, how much does it cost to own a piece of Cape Town? The answer of course is dependent on the type of home you are looking for. That been said, prices on the Atlantic Seaboard range from $100,000 to $6 million. The former price will fetch a basic 1 bedroom apartment and the latter will set you up in a state of the art, architecturally award winning mansion. From the top to the bottom and everything in between, the following descriptions will help you to make an informed decision about which part of the Atlantic Seaboard suits you best. 

At One End, There are Lower Prices - Beginning at the base of the price scale and marking the start of hot Atlantic Seaboard property, are the areas of Green Point, Sea Point, 3 Anchor Bay and Mouille Point. It is the quantity of apartment blocks and smaller cottage styled homes in these areas which allow for reasonable prices. There are still 1 bedroom, sea view apartments to be found for around $100,000. But for how long? Last year, Mouille Point experienced a 193% price increase in house prices. 193%.

All 4 of these areas are undergoing serious regeneration. In the recent past, public spaces, of which there are a lot of in Sea Point, were potentially danger zones and not frequented by the general public. The not-so-long-ago desolate seaside promenade has now become a popular meeting, jogging, soccer playing and pram-walking spot. Sleek developments under construction rattle above heavy pedestrian traffic mingling around the supermarkets, banks and shops during the day. While at night trendy new coffee bars, gourmet deli’s and restaurant patios fill up with locals and tourists alike. Immense growth in this area over the past few years is greatly attributed to the Sea Point City Improvement District. Concerned citizens came together and focused on cleanliness, security, maintenance, retail offerings, parking and investment. They turned the area around, exemplified in the Pam Golding Estate office and the up-market food store. In Cape Town, you know you’re in good neighborhood when Pam and Woolworth’s open up. Still it seems that all the building is just barley keeping up with all of the people looking to move in. Properties here are excellent investments. Finding short term or long term tenants will not be difficult. 
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Beach Living - Moving along the coastline and up the price scale we arrive at 3 Anchor Bay, Bantry Bay, Clifton and Camps Bay. These are the spots to buy your dream penthouse or beach house. At the moment cranes nestle in-between boutique hotels and private residences yet even under construction these properties seemingly floating above the Atlantic are absolutely beautiful. Owning a property here affords incredible views while making a statement about what it is you can afford. There is a definite prestige to living on the Atlantic Seaboard.

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Clifton Beaches - Four wind free beaches, dusted in white sand, surrounded by cliffs and the cool Atlantic Ocean… Clifton’s beaches are extremely beautiful. Their splendor has made them very popular and all summer long people from all over the world come to visit. Lying there, catching some rays, watching these people, I can’t help but think about the lone shoemaker who lived here in the late 1700’s. He would mend the shoes of farmers en route to Cape Town to sell their produce. He must have been mesmerized by the beauty too. 

Since the shoemaker’s day’s people have been admiring and enjoying the beaches. It didn’t take long for someone to start a building trend. It did take a little longer for concern over the beaches’ future to take control. However, in a struggle to stop overdevelopment, the beaches were declared National Monuments in 1984. This thwarted massive apartment block developments and resulted in Clifton’s exclusivity. There are only about 100 houses in total on the four beaches. Many home owners rent their properties out over the busy months of November to March. Rates begin at US $3000 a month. Last year, the average price of a Clifton house was over $1 million. 

Camps Bay - The coastal road winds past Clifton and descends into Camps Bay. This community’s   population and style change with the seasons. A postcard of beach living in summer with volleyball tournaments, beach massages, craft vendors, late nights with hipsters in big sunglasses and sidewalk patios with flashy sport cars parked outside. Conversely in winter, a lone Land Rover will drive down the strip, windshield wipers clearing the rain. The sea will be rough on one side of the road and the shops and restaurants buttoned up on the other. Locals like me will be inside enjoying a bottle or two of South Africa’s popular export; red wine.

Camps Bay is as well known for its incredible backdrop - the 12 Apostles Mountain range – as it is for the architecturally award winning homes. Local and international architects spare no cost on imported finishing’s and design. Floor to ceiling windows, infinity pools dropping off over cliff ledges, creative lighting and terrace’s with views to Antartica are some of the features of the iconic homes here. 

The High End - Shoppers in Camps Bay, Clifton, Bantry Bay and 3 Anchor Bay will not find bargain basement prices. They simply don’t exist. Purchasers here are usually in it for the long haul, buying their primary or secondary residence. A good find in this area is a fortunate thing and will require hunting by yourself or a qualified agent. 

Introducing the divine real estate along the Atlantic Seaboard would not be complete without a bit about Fresnaye. High above the beaches, Fresnaye is located exactly between mountain and sea. The views are impressive to say the least. Palm trees line the streets with names like; La Croix, Coeur de Lion and Des Huguenots, granting the area an immediate flair. (For more information on the French Huguenots history in the Cape, read my April article on Cape Dutch Architecture). Homes on this hill or in any of the above mentioned beach or high end areas are priced at their lowest around half a million dollars and go up to over $6 million. An older, freestanding house, 4 bedrooms, en-suite, multi-car garage was listed earlier this year in Camps Bay at $1.4 million. It sold. 
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There’s No Time like the Present - The time to buy your Atlantic Seaboard property in Cape Town is now. The market is not depressed but rather reflective and prices are steadying. The sense of urgency seems to have gone and a rationale is settling over the real estate market. Properties are spending more time on the market causing some sellers to reconsider their outrageous prices. Time to buy. The prime interest rate is 12%, the lowest it has been for years and there is no reason to suspect that this will change in 2005. Home buyers are usually quoted a prime minus one rate of 11%. Cape Town has not (yet) reached international prices only international standards. How long before this changes? I’m not sure. I am sure however that I’m not going to sell. Not yet anyway. There is almost enough time to book a flight to buy the house of your dreams before the next boom hits. Just give me a few weeks to find another one first!

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