Cape property boom
Apart from Cape Town being named the ‘Best City in the World’, it was also a good year for this city’s property market, with hundreds of properties sold for a combined worth of R4.4b.
Last year was a particularly good year for the Cape Town Metro which ended with record international tourist arrivals, according to Tourism Cape Town. The City was named “Best City in the World for Food” (Condé Nast Traveller), and “Best City in the World” (Time Out).
It was also a good year for the property market, according to the Seeff Property Group. A record of over 144 properties sold for over R20m worth a combined R4.4b. At least 14 of these topped the R50m price mark, including a R66m villa in Fresnaye, sold in December.
The highest volume of R20m-plus sales on the Atlantic Seaboard were in Camps Bay, where eight of these properties were sold, says Ross Levin, licensee for Seeff Atlantic Seaboard. It’s also not just the traditional areas such as Clifton and Camps Bay where properties are selling for over R20m, but areas such as Mouille Point and Sea Point as well.
Lightstone data shows property transactions for the Cape Town Metro amount to about 39,437 units worth almost R82.3b for the 2024-year at an average price of R2.08m versus R1.4m in 2020, thus price growth of 48% in just under five years. StatsSA data indicate price growth of around 5%-7% for last year.
Comparatively, Lightstone data shows that the average transaction price for Johannesburg stands at R1.36m, for Tshwane/Pretoria at R1.35m, and for Durban at R1.42m.
At least 21 Cape neighbourhoods boasted at least 10 sales over R10m, including those located in Somerset West (Erinvale), and Stellenbosch (De Zalze and Mostertsdrift), as well as George (Fancourt) on the Garden Route.
At least 15 Cape Town suburbs boast sales over R20m. The growth in high value sales has been notable since 2020.
The Atlantic Seaboard boasts the highest number of suburbs with high value sales including Clifton, Camps Bay, Bantry Bay, Fresnaye, Llandudno, Mouille Point and The Waterfront on the Atlantic Seaboard as well as Tamboerskloof, Oranjezicht and Higgovale in the City Bowl.
Levin says further that sales boomed over the summer with a record sales month in December of R214.4m for the Atlantic Seaboard and City Bowl areas. After a short lull over the festive season, Levin says the market is off to a flying start for the year.
Notably, these are primarily international buyers already in the country, and undeterred by the American rhetoric directed at SA as they know the country well and are confident about investing more into Cape Town property.
Constantia and Bishopscourt in Cape Town’s Southern Suburbs have seen some of the highest volume of R20m-plus sales last year with over 45 recorded on Propstats. Francois Venter, lead agent for Seeff who says demand has been particularly buoyant above R10m in the upper end of the market.
While high value buyers over R20m have been predominantly local Cape buyers who continue showing their confidence in the metro by investing in property, but also buyers from Gauteng and KZN who are investing in property in the City. Additionally, international buyers from the UK, Germany and northern European countries especially have bought property in the City during the last year, along with many other internationals, including the UAE, Saudi Arabia, Australia, Russia, Mauritius, Zambia and Zimbabwe.
The Cape property market has been rewarding for buyers and sellers alike. Samuel Seeff, chairperson of the Seeff Property Group believes that the Cape will again emerge as the strongest market this year. Aside from locals, the continued influx of semigration and international buyers will continue to support the market. Stock shortages across most areas now present excellent opportunities for sellers to capitalise on the current market.
Issued by Gina Meintjes
