Century City bucks the slowdown

Century City is continuing to buck the general slowdown in the residential property market with the letting market booming and more than R52m in sales having being notched up over the past two months.

Allen Usher, MD of Property World, the exclusive on site sales and letting agents for Century City residential properties, said that 20 sales totaling more than R29m had been achieved in December, which was normally the quietest month in the residential property market.

"This was followed by a further 16 sales in January with a total value of just under R23m which exceeded our sales the previous January when the residential property market was peaking," he said.

Sales over the past two months comprised 21 apartments and houses in newly launched developments and 15 completed homes in developments which have already been sold out.

Usher said the media had recently been full of doom and gloom reports on the slowdown in the residential property market.

"However, we have seen little or no evidence of this at Century City where more than 300 residential apartments or homes have been sold in the past 13 months for a total of R370million. It really goes to show that if you have a great product in an excellent location and are perceived to be offering value for money with growth potential you can't go wrong even when the general market has contracted."

Usher said the residential letting market at Century City was also extremely buoyant with 120 apartments having been let by their specialist letting division for investor-owners in recent months and an average of 20 new tenants being signed on a monthly basis.

"This segment of the market has picked up strongly, particularly since October, and goes to show that tenants are being equally discerning with location being their primary consideration in choosing a home. Our tenants are also being attracted by the convenience factor of living at Century City as it is close to town and has shopping and entertainment facilities right on the doorstep. The excellent security and access to facilities such as private pools, gyms and laundromats in most of our developments are added attractions," he said.

Usher said rentals being achieved varied from R3500 a month for a one bedroom apartment through to in excess of R8000 a month for a three bedroom furnished apartment representing a market related return on an investment of between R450 000 and R1,2m.

Property World's rental division, he said, offers a full rental service catering for all types of tenants and ranging from furnished holiday apartments where a daily rate is charged through to short-term lets of a month or two to more longer term lettings.

"Currently stock on our books is for homes in The Island Club, Century View and Villa Italia and recently a handful of units in Bougain Villas have become available. This stock is being added to as new developments and phases come on stream," he said.

Source: Cape Business News - www.cbn.co.za

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