Record demand, big returns for Cape Town suburban sellers

Driven by demand from young professionals and families, including semigration buyers along with tenants coming from other regions, suburban areas such as the Southern Suburbs in Cape Town are booming.

James Lewis, licensee for Seeff Southern Suburbs, says demand is currently unprecedented, with low stock levels offering incredible opportunities for sellers to achieve top prices. The average house price in the area now ranges between R4m to R8m, up by more than double over the last decade.

Constantia and Bishopscourt Now Top Five Suburbs

Constantia has for example been one of the best performing property markets, and the market is going up in value quite quickly, according to Nikki Edenborough and Faith Knight from Seeff sales, for this year already tops about R1.8b. Property values have basically doubled over the last decade to R9.3m on average.

Buyers are attracted to the area for its prestigious, high-quality suburban lifestyle, creating favourable conditions for sellers as illustrated by two recent sales concluded by Nikki and Faith. One property sold for R5.2m, some R300,000 over the asking price with six offers submitted. The second property achieved the full R9.5m asking price within just one day of listing, 10% higher than a comparable sale just months earlier.

Constantia Upper alone boasts sales of over R1.2b this year already at an average price of R21.4m. Some 21 of these sales are priced over R20m with two of these topping the R100m price mark. The Uppers areas are performing really well, according to Francois Venter, lead agent for the Seeff Uppers team which has sold 12 high value properties priced from R19m upwards, just in Constantia and Bishopscourt. Both suburbs have seen some of the highest sales volumes over the last two years with Propstats showing some 16 sales over R20m in Bishopscourt alone this year so far.

Neighbouring Bergvliet is also seeing record demand, with properties selling so fast that there is now a waiting list, according to Sharyn Dabbs from Seeff. The past two years have seen strong sales volumes and notable price increases, with the average selling price now over R5m. Homes are typically snapped up within a day to a month of listing. Sellers are achieving prices within just 5% of their asking, and often for the full price.

Rondebosch and Claremont Price Boom Driven by Proximity to Top-tier Schools

The area has become so popular that sales in Rondebosch have reached record levels, with demand far exceeding supply. Properties are selling rapidly, often within a week, and more than half achieve, or nearly reach their asking prices. Charmaine Scott-Wilson from Seeff has sold 14 homes already this year. While the average house price is around R7m, buyers waiting for new listings are now willing to pay up to R25m.

Rondebosch East is experiencing significant demand, reports Mariam Rahman from Seeff. Over the past decade, sectional title prices have surged by 50% to R1.3m, and freehold homes have doubled to R2.9m. The area appeals to first-time buyers, mainly families transitioning from rentals, and also to investors responding to the ongoing need for rental accommodation. The popularity is fuelled by the family-friendly atmosphere, reputable schools, and convenient access to religious institutions, making it an ideal time for sellers.

Claremont/Lynfrae houses are also selling fast, and achieving top prices, according to Belinda Keys from Seeff. Properties are even selling before being listed, or within a day or a week, such is the demand. Sellers are often getting their full price, or within 2.4% below their asking prices. The average house price is now around R4.9m while Belinda has already set a new price record with a Lynfrae sale of R8.895m.

Buyers turn to Woodstock, Salt River and Observatory (Obs)

Transactions over the last year have been on par, and still higher in the case of Woodstock compared to the pre-pandemic period. Propstats data shows almost half of all properties sold within a month, and some within a week or a day of listing.

Proximity to the CBD and Waterfront, but without the hefty price tags, and the addition of the new Riverlands precinct and Amazon headquarters are a major boost for the area. It brings thousands of jobs and drives further demand for residential and rental properties among young professionals seeking to live close to work, creating more opportunities for sellers, says Craig Algie from Seeff.

Issued by Gina Meintjes