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Soaring trophy home sales in Constantia have buoyed the luxury market in this area, spurring new construction developments to meet the growing demand, with the latest being an exclusive three-villa estate in Upper Constantia conceptualised and realised by the internationally acclaimed South African architectural brand, SAOTA.

According to Rouvaun McKirby and Joanna Thomas, Area Specialists in Upper Constantia for Lew Geffen Sotheby’s International Realty, there has been a notable uptick in high-end sales during the past three years.

“There has been a lot more interest from wealthy upcountry buyers as well as UK and European investors, mainly HNW and UHNW individuals, and the R20 million plus price band has been very active, with a few of these sales exceeding R40m.

“Although Constantia has always been popular with swallows, historically, high-net-worth individuals, particularly those from Europe, favoured investing in luxury properties within their own continent and renowned cities like London, Paris, and Monaco have held a timeless appeal.

“However, recent geopolitical uncertainties, economic fluctuations, and shifts in global dynamics have compelled investors to rethink their real estate portfolios and many are now looking at Cape Town.”

This is corroborated by Propstats data which shows that in 2018, of the 72 houses sold in Upper Constantia, only seven (9.72%) were priced above R20 million. In 2021, when lockdown ended and pent-up demand was driving the market, house sales jumped to 102 with 13 of these homes being for more than R20m.

“In 2022 we really began to see the shifting trend with a significant spike in high ticket sales. Of the 85 house sales in Upper Constantia that year, 20 were priced above R20m with the highest sale price being R100m for one of the last remaining farms. And this year, by the end of May, 31 houses had been sold with 11 (35.48%) properties being in the R20m plus price band.”

During times of economic uncertainty, investors are drawn to the historic stability of residential property, and this is especially true of the more resilient luxury market which tends to operate independently of general market trends and, in Constantia, growing demand from both local and international buyers has seen the sale of trophy homes soar.

“The favourable exchange rate and Constantia’s unique blend of rural tranquillity and urban convenience, with world-class restaurants, wineries, golf courses and outdoor activities right on the doorstep make Constantia an attractive investment for these buyers,” say the partners.

Not all luxury markets are equal during tough times, however, and, as a rule of thumb, a positive indication of a solid market with continued growth is where development continues regardless of the economic climate as developers will not risk costly losses in areas where good returns are a gamble.

The latest development in Constantia is a testament to that fact. Consisting of just three luxury villas perched high on a hillside with panoramic views, these architectural masterpieces are a perfect fusion of luxury, functionality, and timeless aesthetics for the discerning buyer.

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According to Thomas and McKirby, the contemporary villas all feature open floor plans for an effortless flow between living spaces with expansive floor-to-ceiling windows that bathe the interior in natural light. Extraordinarily high-quality finishes include pristine marble countertops, bespoke designer fittings and Gaggenau luxury home appliances.

”Always mindful of environmental sensitivity, all design elements harmonise with the natural surroundings and there are double-glazed windows for enhanced comfort and energy efficiency. Oggie-engineered wood flooring adds warmth and elegance. Each villa is also equipped with a lift, ensuring easy access across all three stories.

“And, for peace of mind, Beau Glen has the highest level of security measures including a guard house, controlled access and CCTV camera surveillance.”

The current view, especially among HNW buyers, is that the Cape Town property market remains extremely attractive and very competitively priced by international standards and, despite South Africa’s challenges, these buyers are happy to spend upwards of R25m and, with property values on the rise, Constantia represents a sound investment.

Developed by Grow and exclusively marketed by Lew Geffen Sotheby’s International Realty, the villas are priced between R46 995 000 and R48 995 000.

[source:businesstech]