Prices of penthouses are testing new highs as wealthy buyers seek out the views, privacy and exclusivity that these pinnacle sectional-title properties offer.
A buyer has just forked out a jaw-dropping R75m for a 400m² penthouse at Ellipse, the new high-rise apartment development at mixed-use precinct Waterfall City, between Sandton and Centurion.
It’s believed to be the highest price paid for a sectional-title property in South Africa since 2008, when a luxury apartment at the One&Only Waterfront hotel in Cape Town fetched R110m.
A four-bedroom penthouse in Victoria Road, Bantry Bay, was sold last year for an equally impressive R72m. The sale — of one of only eight units in the Aurum Presidential Residences — set a record for sectional-title prices on a rate per square metre basis: R180,905/m².
In addition, at least four penthouses at the V&A Waterfront have changed hands over the past year at between R45m and R55m.
In Fourways, Joburg, at insurance tycoon Douw Steyn’s golf and lifestyle estate Steyn City, a 442m² penthouse sold for R33m last year.
But what’s behind wealthy buyers’ newfound penchant for penthouse living? And what makes one trophy penthouse more desirable than the next?
These days, [penthouses in Cape Town] can list for upwards of R120m-R250m depending on location, size, the individual building and the add-on amenities offered
— Ross Levin
Pam Golding Property group CEO Andrew Golding tells the FM it’s all about rarity value. “A penthouse typically sets itself apart from other apartments in the same building due to its unique location at the top of the building, which tends to have the best and most spectacular views,” he says.
Golding says penthouses usually also offer the luxury of space, including expansive outdoor decks, rooftop gardens and private pools. Top-end fittings and finishes are par for the course. They also offer security and privacy (private elevator access is becoming increasingly important to buyers).
Demand is further underpinned by limited opportunities to own what he describes as the “pinnacle asset” in a prime building or development.
When all these factors align, buyers are prepared to pay a premium for penthouse properties — which of course continues to support the investment case. Golding says penthouses tend to cost at least 20% more than conventional apartments of similar proportions.
That premium can be as high as 50% on what is arguably Africa’s most expensive stretch of real estate, says Seeff Atlantic seaboard and city bowl MD Ross Levin.
You can understand the allure. As Joshua Parsons, luxury auction specialist at Harcourts Atlantic, tells the FM: “Cape Town’s Atlantic seaboard, renowned for its breathtaking coastal landscape, presents an ideal setting for a penthouse, granting expansive vistas of the ocean, mountains and cityscape.”
The values of penthouses in the Mother City have risen appreciably in recent years — so much so that it’s no longer unusual to see penthouses with listing prices of R100m-plus, says Levin. That may be sellers chancing their arms, of course: no property has changed hands for near that since 2008.
“These days, they can list for upwards of R120m-R250m depending on location, size, the individual building and the add-on amenities offered,” he says.
Levin singles out the V&A Waterfront as Cape Town’s most sought-after penthouse destination — specifically at the six-star One&Only hotel and on the Marina’s front yacht basin. Eventide, which overlooks Moses Beach in Clifton, also commands top dollar.
Other exclusive buildings where penthouse prices start at R30m include The Bantry and The President in Bantry Bay, The Estate on St Johns and La Camargue in Sea Point and The Fresnaye in Fresnaye.
In this price bracket, you’re typically looking at direct lift access to 600m²-1,000m² of living space, extensive rooftop gardens, terraces and private pools, 360° ocean and mountain views and top-of-the-range fittings and finishes.
On-site access to a gym, pool, spa, restaurant, bar, valet parking and concierge services is also in high demand.
Parsons adds to that list. In his experience, penthouse buyers’ demands include floor-to-ceiling windows to optimise natural light and ocean, mountain and cityscape vistas, and gourmet kitchens with high-end integrated appliances, built-in wine fridges and chef-grade ovens and stovetops.
Hardwood flooring, natural stone tiles and marble or quartz countertops as well as walk-in closets and built-in storage solutions are also high on buyers’ lists. So are backup solar and battery energy systems, as well as alternative water supply sources and smart home technology to control security, lighting and appliances from smartphones.
Parsons says buildings with designated pet areas, including rooftop dog parks or indoor pet grooming facilities, are becoming increasingly popular.
Throw in the air of prestige and status, and round-the-clock security that comes with owning a penthouse in a prime position, and buyers are happy to pay up, he says.
“Penthouses provide a heightened level of privacy compared to other property types. Situated on the top floor, they typically have fewer neighbours and minimal noise disturbances,” says Parsons.
And, he adds, they’ve become an asset class in their own right. “The scarcity of available penthouses combined with strong demand from affluent buyers and renters add to their long-term investment prospects.”
Outside the Western Cape, Sandton is seeing a similar trend of rising demand and prices, with penthouses in top-notch locations starting at R45m.
Seeff Sandton MD Charles Vining says the most desirable buildings for penthouse living include the Legacy group’s Michelangelo Towers, Da Vinci and The Leonardo, as well as Empire Place, Embassy Towers and The Regent.
Sotheby’s International Realty has a 635m² penthouse on the market in the heart of Sandton’s CBD for a cool R85m. The “one of a kind” duplex apartment takes up the top two floors of the Da Vinci hotel.
It’s fully furnished and offers opulent extras such as a self-contained butler’s pad, a marble staircase, private lift, his and hers dressing rooms, a cinema room and, of course, expansive views of the Joburg skyline.
Meanwhile, the premium for high-end penthouses with all the bells and whistles can be as high as 50% on KwaZulu-Natal’s (KZN’s) north coast, says Seeff Umhlanga licensee Anni Eisele.
That’s because there’s only a handful of ultra-exclusive oceanfront units at the top of Umhlanga’s most desirable high-rise apartment buildings. Eisele believes the premium is justified given limited supply, which provides a strong underpin for capital growth.
She says a penthouse at Umhlanga’s Oyster Schelles which sold off-plan a decade ago for R13m resold for R29m two years ago. That same unit was recently refurbished and is now valued at R35m.
In 2021, a penthouse at The Pearls fetched R50m, the highest sectional-title price achieved to date in KZN.
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