Demand for Cape's Tyger Waterfront property exploding
Since construction on the Tyger Waterfront began back in 2002, this unusual and desirable Northern Suburbs precinct has grown from strength to strength. It now boasts 27 distinct buildings, with a mix of contemporary commercial, residential and retail premises, all of which are highly sought after by buyers and tenants alike.
"The mixture of residential and commercial space that we see at the Tyger Waterfront is quite unique for the Northern Suburbs," says Paul Abbott, Rawson Property Group’s franchisee for the area.
"It has a very modern, city-living feel, with all the conveniences and amenities, and the added bonus of great views and good value when compared to similar properties in Cape Town’s city centre, for instance."
With an approximately 50/50 split between commercial and residential units, Tyger Waterfront has fast become a key component in the Northern Suburbs’ flourishing CBD.
Abbott says this is only partially due to its extremely central location, however, a large part of the Waterfront’s success is its great work-live environment."
"This has been instrumental in attracting the host of up-and-coming professionals and trendy businesses that occupy the majority of units. The tenant mix has also created an ideal environment for retail and restaurant trade to flourish, and there is a very vibrant social component to the development as well," says Abbott.
Properties in Tyger Waterfront range from bachelor flats to luxurious penthouses, with prices kicking off at R800 000 and running up to about R3 million.
"North-facing, water-fronting units carry a premium, but stock is scarce across the board, and anything reasonably priced sells within about three weeks," says Abbott.
"We’re also seeing a lot of cash buyers at the moment, which speeds the process along, making it even more important for buyers to act quickly or end up losing out."
He says rental units are equally scarce, and of the 200-odd furnished and unfurnished residences managed by their franchise, not a single one is currently vacant.
"Buy-to-let is a very good investment here, since we almost always have more interested tenants than rentals available. Tenant performance is also way above the national average, which means it’s a low-risk opportunity," says Abbott.
Residential rentals in the Tyger Waterfront start at around R6 000 a month for a bachelor flat, with larger and more spacious units commanding rents of up to R19 000 a month, unfurnished. 70% of properties are tenanted, with only 30% of units currently owner-occupied, a good indication that the rental market is not only stable, but thriving.
"I’d definitely advise property owners in the Tyger Waterfront to consider renting their unit rather than selling at the moment - prices are already rising, and demand is only going to grow as the area’s reputation spreads," says Abbott.
"You can sell now quickly, and at a profit, but the returns are going to be even better if you can stick it out for the long term."
As for buyers, Abbott strongly suggests getting pre-qualified by a bond originator to strengthen any non-cash offers.
"You’re not going to regret purchasing in the Tyger Waterfront, but you do need to prepare yourself to make an informed purchase decision, quickly. Buyers are facing a lot of competition, so anything you can do to hasten your own decision-making process and strengthen your offer is going to go a long way towards helping you make a successful purchase," says Abbott.
"If you need any help assessing your options, get in touch with a real estate agent who is active in area in advance."