Back in June 2008, Seeff were crowing because one of their agents had sold a penthouse at Sol Kerzner's One&Only development at the V&A Waterfront for a hefty R110 million. Here's a quote:The first of the three super-luxury penthouses which hotel magnate Sol Kerzner is developing on his One&Only Hotel Cape Town in the V&A Waterfront has been sold by Seeff at a record price of over R110 million.
Now read the following quote from this listing:
One&Only 3 EXTRAORDINARY PENTHOUSES FOR SALE.
Now I never did too well at maths, but if you have three penthouses and you sell one, that should leave two for sale. So why are three on sale? Also why has the new listed price dropped R10 million.
13 comments:
"These Penthouses will be the most sought after real estate available in Southern Africa"
That's what the ad says - begs the question of course, if they are "so sought after", how come no one is buying them.
Ooba has kindly given the payment schedule below the ad for a R 100m bond - R1.03 mil a month. Seems like a bargain. Only R23 a minute.
Great investment, I’ll take all three. We’ll need properties like these for the soccer stars during the world cup. Wonder what we can rent places like these out for until then? And after?
Can anything be worth a 100Mil? Maybe ones health.
One thing that the happy future owner will be paying besides the R23/minute for the bond are the, I am sure, astronomical levies for the hotel facilities, private elevators, etc.
In essence he will be paying R100M to book a massive hotel room for years to come with no right of cancellation...
Anonymous Coward
Even at 800 square meters each, these apartments offer no value for money.
With R100 million, one could buy a entire block of flats anywhere on the Western Seaboard, convert the top floor into a massive apartment and still be able to collect the rent from the remainder of the building without any stuffy body corporate meddling.
Or one could buy four or five houses in Camps Bay and build one huge one and still have R50-60 million odd in the bank.
As for the One and Only hotel, just recently the admitted to laying off workers barely a month after opening due to the downturn in business.
I think Sol over extended himself on this one and the investment is not as sweet as originally thought.
Lets assume a top suite is R9000 a night - that's 3.3m a year.
Meanwhile to buy costs 12m a year. Doesn't really make much sense to buy.
There are flats in UCT student res for sale at R35000/sq.m. Basic little rooms with no fancy fittings or any luxuries. At approx R100000/sq.m. the price for over-the-top luxury does not seem too bad. Especially if you consider that the potential buyer will probably buy cash and would not need a monthly rental return.
If the owner would (these type dont), these pads will rent for much more than the suggested R9000/night. Closer to $3000 per night, if you look at 'similar' pads.
@ Peter
Why dont you compare apples with apples instead?
According to the prices being achieved in the last month (and according to the CMA which tracks official prices), most apartments were sold in the Cape Royale Development for R40 000 per square and that was early 2008. Prices are down since then.
In clifton, the top price per square meter over the past 12 months has been R75 000 per square meter.
In the V and A Waterfront apartment block called Kylemore, which is right next door to the One and Only, the best price achieved per square meter was R80 000 per square. A 90 square meter flat went for R7.140 million.
At best, the apartment at the hotel is worth R70 million...if that!!!
A very good article link from http://urbansurvival.com/week.htm
Why the Economy Will Remain Weak
The term "green shoots" appears destined to go down in history with other unfortunate themes such as "a goldilocks economy"; "it doesn't matter if internet companies have no earnings";..........and the classic "home prices never go down". Whenever a herd of investors latches on to a popular theme, that theme most often proves to be wrong.
The key factor to consider is that the current recession was caused by a credit crisis following an artificial boom and therefore bears more resemblance to the great depression following 1929 or Japan after 1989.than it does to the series of recessions experienced in the post World War ll period.............All in all, the recession we are now experiencing is not a typical post-war decline, but the end of an era, and getting the economy back on its long-term growth trajectory will take an extended period of time.
http://www.comstockfunds.com/default.aspx?act=Newsletter.aspx&category=Market+Commentary&newsletterid=1464&menugroup=Home&AspxAutoDetectCookieSupport=1
Idiots, you whole lot. Bunch o fools.
another great read about bubbles...
The Great American Bubble Machine
http://www.rollingstone.com/politics/story/28816321/the_great_american_bubble_machine/print
In Rolling Stone Issue 1082-83, Matt Taibbi takes on "the Wall Street Bubble Mafia" — investment bank Goldman Sachs. The piece has generated controversy, with Goldman Sachs firing back that Taibbi's piece is "an hysterical compilation of conspiracy theories" and a spokesman adding, "We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good." Taibbi shot back: "Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it." Here, now, are excerpts from Matt Taibbi's piece and video of Taibbi exploring the key issues.
One of the 3 has definitely been sold, my friend works for WBHO and she's been flying around the country with the wife of the buyer chosing finishes for the penthouse.
The penthouses at the One&Only are amazing! But honestly, not worth the millions you have to pay for them! Mostly you are paying for the One&Only brand and the fact that you will be living at the Waterfront.
There are so many amazing penthouse properties in Cape Town, especially in the Camps Bay area.
So I would rather get a nice penthouse by the beach than an overpriced playboy mansion!
With the World Cup coming up I think the One and Hotel hotel is gonna be packed with celebrities and sports stars. If this penthouse has not been sold yet, it will definately be occupied come june.
Post a Comment