Property sales prove confidence in Cape Town

There is just something about Cape Town which continues to draw high net-worth buyers to the city’s property market. Notably, it is not just international buyers who are paying big bucks for Cape Town property, but increasingly more local buyers are prepared to pay R20m-plus for homes in the city.

More properties have sold above R20m in the first quarter of this year compared with the same period in 2023. Samuel Seeff, chairperson of the Seeff Property Group, believes Cape Town stands out as the strongest property market in the country. More buyers are now even prepared to pay R20m for a luxury home in surrounding areas such as Stellenbosch, Langebaan and Hermanus.

The reason is simple, a strong property market is supported by strong governance and service delivery. Wealthy buyers vote with their wallets as is evident in the volume of sales above R20m in Cape Town versus Sandton, despite Joburg/Sandton being the economic powerhouse. This has been increasingly evident over the last few years.

Data from Propstats shows that for the first quarter of this year some 31 sales worth just under R890m above R20m have been concluded in Cape Town. This is up compared to the 26 sales for the same period in 2023.

Clifton, Camps Bay and Constantia have been the areas with the highest number of R20m-plus sales since the start of the year.

The highest prices paid include:

– R50.4m at the Waterfront sold to a local Cape buyer.

– R43m in Constantia, sold by Seeff to a French buyer who had been renting on the Atlantic Seaboard and wanted to move to the suburbs.

–  R43.5m in Bishopscourt, sold to a local Cape buyer, and

–  R44m in Llandudno, also sold to a local Cape buyer.

The above clearly demonstrates the strong confidence in the Cape property market. Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl, says the momentum in the R20m-plus sector of the market remains robust. Stock is now becoming somewhat limited. Seeff made at least four sales above R20m since the start of the summer, two at the Waterfront, one in Clifton and one in Fresnaye.

The super luxury sector of the market is not particularly concerned about the election outcome as they expect the Cape to remain stable. Although it is expected that this could be a historic election, most do not see it impacting the country at this stage, although typically we do see increased momentum post an election, says Levin.

Although most buyers have been local, there has been strong investment into Cape Town property by international buyers, mostly in Camps Bay with German and Swiss buyers.

He notes further that while the middle sector has slowed due to the high interest rate and slow economy, there has been more sales at the upper end of the market. He believes that high net-worth buyers are taking advantage of the flat price growth, and they are most certainly investing in Cape Town as they see it remaining stable and well managed under a DA-government after the elections.

Buyers have been mostly local together with some international buyers from Germany and more buyers from the USA recently. International buyers are not too concerned with SA politics, but see the country as offering good value, complimented by scenic beauty, a fantastic climate, attractive leisure offerings, and good infrastructure. Cape Town and surrounds are obviously at the top of their shopping list.

Writer: Gina Meintjes