Nettleton Road in Clifton is South Africa’s most exclusive road, so when a property – or even an empty piece of land, comes up for sale, the price will be hefty.
This is the case with one plot of land that is on the market for R300 million.
The property size is 3 812 square-metres, and can either be purchased entirely or sub-divided, says marketing agent Allan Barrett of RE/MAX Living.
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The plot can be divided in half, with each piece of land costing R150m, or into four at a cost of R75m each.
But who has the money, or the desire, to pay these millions and then still have to build a home on it?
“Anyone who would want to be in Nettleton Road,” Barrett says, adding that someone once bought a plot in the road and then spent R300m building their home on it.
Although the land presents a great opportunity for a wealthy buyer or development company, there has only been “occasional” interest in it.
“We do get enquiries though. The Cape Town market has picked up a lot this year and I think someone will purchase it, either a foreign buyer who can afford it, or a developer.”
If an individual – even a local buyer – does snap up the land, he feels that it is “highly unlikely” they would only buy 900 square-metres of it, which is effectively one quarter.
A buyer may look to purchase it and put up their own trophy home, or a developer might want it to put up sectional title homes. However, he says the buyer cannot put up too many properties as, in Cape Town, one can only put up three dwellings per erf. So potentially, a developer could construct 12 properties.
The problem though is that the neighbours are resisting this as they are against densification. And because they have “deep pockets” they can afford to fight it. There are also heritage issues as some of the trees on it are protected.
“This plot is on the most expensive and exclusive road in South Africa, and as the market has been very strong this year, I do believe someone to step up and buy it.”
There are very few plots available in this area and Barrett says it is the best piece of land available in Cape Town. But it really would only appeal to a niche market. Most people who live here have bought old houses, knocked them down, and then rebuilt.
He believes that putting up four houses on the full plot is the best way to utilise the land. However, an application for it to be sub-divided is still pending.
Currently, the plot is owned by a company and the properties that were built on it have now been knocked down.
Click here for more information on this plot or search IOL Property for other plots for sale.
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