Cape Town’s luxury property prices spike

Average selling prices for Cape Town’s luxury suburbs such as Constantia Upper and Bishopscourt have spiked to R26m and R30m, respectively, despite a broad market slowdown, says Francois Venter, Seeff’s lead agent for these areas.

These price spikes are particularly evident across “The Uppers” areas of the Southern Suburbs, which include Constantia Upper, Bishopscourt, Newlands, Claremont Upper, and Kenilworth Upper,

Prices are up significantly for these suburbs. Sales data for the first quarter of this year shows that Bishopscourt property is selling for R30m on average, almost three times the average from five years ago, which was around R11m.

Constantia Upper is selling at an average price of R26m, more double compared to the R12m average in 2020. The average for Kenilworth Upper stands on R18m, almost three times as much as the R5.6m average in 2020.

Newlands is on R14m while Claremont Upper on R11m. This is basically double the R6m average for these suburbs in 2020, says Venter.

This, despite 17% fewer buyers compared to last year, and sales data pointing to a broad market slowdown for these areas. Venter says while economic factors are driving the wider slowdown, property listings have halved year-on-year with low stock levels resulting in the higher prices paid.

Propstats data shows that 44 units sold during the first quarter compared to 74 for the same time last year. The combined value, however, is R860,190,000, only slightly lower compared to last year’s R866,798, 565, driven by the higher prices.

This has also resulted in the overall average selling price for these suburbs standing at R19m, notably higher compared to last year’s R11.7m, reflecting high averages for the respective suburbs.

Venter says further that these high average prices put “The Uppers” suburbs among the top luxury in the country. While the overall economic growth and interest rate outlook has weakened due to the ongoing Middle East War and recent interest rate hike, he says the outlook for these suburbs remains strong.

Currency shifts, global mobility, and international sentiment continue to influence pricing and demand in the luxury suburbs, he says further. Both local and international buyers, including semigration buyers continue paying a premium for the quality lifestyle, and access to top schools, amenities and well-managed infrastructure and services.

This has translated into a rewarding market for sellers and investors while driving strong demand and confidence, but skilled local property professionals have been key to the market’s success.

Venter highlights that Bishopscourt is a low-supply, but high-demand market, offering long-term value. With 40% market share, Venter says Seeff’s experience shows that while luxury home sales take time, a focus on qualified niche buyers proves effectiveness over open-market exposure, converting more exclusive mandates into sales.

Kenilworth Upper remains resilient and family-focused, with strong momentum supporting faster sales through accurate pricing and negotiation.

In Newlands, buyers act decisively when suitable homes appear, drawn by schools, location and lifestyle, helping sellers achieve prices close to asking. Claremont Upper appeals to families, professionals and rental investors, with buyer overlap creating additional advantages for sellers in this market.

Generally, luxury areas such as these located in “The Uppers” tend to defy economic headwinds and interest rate fluctuations. The convergence of local and international demand on these prestigious pockets, keeps the outlook resilient, reinforcing these suburbs as the premier choice for those seeking enduring value in the Cape Town property market.

Issued by Gina Meintjes