Back in June 2009 I reported that despite claiming 1 of the 3 penthouses had been sold at the One&Only V&A Waterfront for a record breaking R110 million, all three were seemingly still on sale.The Sunday Times then reported in August of that year that in fact the sale had seemingly been staged by Sol Kerzner to himself. This was vigorously denied by the agents involved (Seeff Atlantic Seaboard) with many a disapproving harumph.
On Sunday The Sunday Times ran an article about a property under construction that will supposedly eclipse that record price and they started that article with:
Hotel magnate Sol Kerzner, who co-owns the country's most expensive home, is about to lose his bragging rights.
An double-storey mansion still under construction is on the market for R110-million - and the developers are entertaining offers from five international jet-set celebrities.
Kerzner bought his 800m² duplex apartment, which runs across the top two floors of the One&Only hotel in Cape Town's V&A Waterfront, for a record R109-million in 2008.
So they seem to be confidently stating that Kerzner was in fact the buyer, or at least the co-buyer. I'll consider that case closed.
10 comments:
Entertaining offers from FIVE international jet setters?
Yeah right.
International "jet setters" who are into property (such as Nick Cage & co) are busy losing their shirts and lack the resources to drop $15 million in Africa on a holiday home. Not in this economy.
I read a lot of blogs and websites about high end property in the US and the UK. There is bloodshed in the market. These people are selling off their Hamptons, Beverly Hills, NYC homes at a fraction of what they paid in 2007.
I don't believe this article for one tiny miniscule nano-second.
Well spotted, but we're assuming the Sunday Times has really done their research here.
Does he even use this apartment?
And the other two are just sitting empty. What an obscene waste... when 15 km away people are living in shacks.
Gosh, imagine what the levy is on a R110,000,000 apartment?
MELBOURNE HOUSE PRICES FALLING AT OZ$400 PER DAY!!!
http://www.heraldsun.com.au/ipad/melbourne-home-property-prices-plunge/story-fn6bfkm6-1226039937945
A recent paper I submit for peer review at CTPB.
A late night noodle on the property market as we approach the waterfall moment on the bubble graph: Is there a Black Swan waiting in the wings or will the Brics save us?
The use of language is interesting. Specifically the change of language and vocabulary use over time which reflects the current and future economic ecosystem [as greed/fear drives markets and fight/flight drives ecosystems we see we are dealing with similar phenomena]Interestingly enough the prefix eco derives from Oikos or house in Greek [in case you thought this had nothing to do with property]
There has been a shift in property vocabulary recently. For years all that was heard was "up" and "always", mostly used in the same sentence. We all have our favourites, add yours. There is however a word that is becoming more and more prevalent and that is:
Reduced
So we head off to Gumtree*, obviously. Now to give context let us see how "reduced" appears on Gumtree as we dont want any trolls and naysayers to poke holes in our late night theories :) I also accept that this only works for those using reduced as a selling point and doesn’t reflect price drops on the whole. Lets say this reflects the desperate sellers, a “Goldilocks Fear and Loathing in Cape Town Property Index” [RIP HST]
/cont
Price dramatically reduced!!
Urgent Sale price reduced
REDUCED TO GO
Price reduced drastically below market value!
Price Reduced
Smallholding reduced by 1 million!
Price reduced from R 3 050 000 to R 2 500 000
Price reduced with no T/fer duty
This plot has just being drastically reduced
URGENT SALE! Massively reduced Price Direct from Owner
I could not find a single instance on the first 2 pages of reduced being used in any other context other than desperation. Now lets look at figures:
Cape Town
vacant land / properties for sale (311)
houses / flats for rent (22)
holiday homes (12)
office space / commercial (11)
short term (5)
other (2)
flatshare / house share (1)
For the total properties for sale figure I will use Gumtree’s ad count even though there might be a few ads that are for services, double posts etc. This total is 9523 which means the GoFALCATPI is presently running at 3.2%. All long and short the index welcome to comment.
Disclosure: Long GoFALCATPI
*Somebody questioned if selling an expensive house on Gumtree was "tacky". I believe Gumtree to be a great barometer of the whole market, except the lower end.
With Cape Town's positive migration, the cape town bubble burst is looking less likely...hmmm
http://www.fm.co.za/Article.aspx?id=139536
It is a curious thing how the top of the market's dramatic adjustment is all out in the open around the world but not so openly displayed in Cape Town. I was recently in the glamorous suburb of Cap Ferrat on the Cote d Azur. Where stars like Elton John and tycoons such as Roman Abromovich have their homes in the sun. Now 15 million Dollars gets you a very nice house there in comparison to the V&A, which also comes without the noise that accompanies a working commercial harbour. My point is however, the immobiliers of Cap Ferrat are displaying it all out in the open, what has happened to prices there. One example on show was a house that was previously for sale for 12.5 Million Euro, reduced to 9 Million, then to 7.5 Million, now as advertised the bank will accept 4.8 Million. Now that still a lot of money for anyone to spend on a second home and it will still struggle to sell, however the point is that the drops are being advertised, its no longer a mystery just how overvalued these houses were and the corrections are for all to see. Bono, U2's front man bought in neighboring Eze for 2.5 million Euro, which is about the right price for a rock stars sea side holiday house. So what's with the lets keep on pretending cover up in Cape Town? C'mon facts are facts, Cape Town is far behind the trend line with regard to getting over the property hangover, but rather still reeling around in it like the last person left at the party. Not so cool!
How much do so called 'wealthy foreigners' spend on a second home? Well firstly lets consider who they are. Let's purposely leave David Beckham, whose second residence is valued at 4.5 million Euro, Brad and Angelina's second home valued at 3.5 Million Euro out of the equation as they are a very small group of people roaming in the financial stratosphere. Lets rather focus on the professional working middle class, those who got degree's after school, have strong middle to senior management positions with top firms or own and operate successful SME's.These people often aspire to private schooling for their children, which costs a lot, drive nice cars, which cost a lot and have a nice primary residence, which they own....that cost a lot, then! Now how much is left over, after pension savings for a second home. Particularly when that second home may be in a foreign country where they would need to pay for the property in cash as they cannot raise finance from abroad. The answer is, there is not a lot left over, so their option is to wait until coastal / country property prices re adjust to affordable levels again in their own country where they will look to pay around 350 000 to 500 000 Euro for somewhere to get away to a few times a year. So i would say that from a foreigner point of view, Cape Town needs to keep on trying to catch a Brad and Angelina, as the rest cannot afford the town. Sure there are the return to CT brigade who will buy a home with some hard earned foreign currency, but that wont be at Brad and Angelina's price points. Interesting how some houses for sale in Bishopscourt, V&A, Bantry Bay, Granger Bay, Camps Bay for 1.5 to 4 million Euro have been on the market for years. Who do the sellers think will buy them?
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