Cape Town has reported unprecedented sales figures from international property buyers, coinciding with a record-breaking summer tourism season, Cape {town} Etc reports.
International buyers have invested nearly R2.462 billion within the first five months of 2023, a five-year peak that underscores the city’s growing allure among global investors.
The total value of property sales in Cape Town in 2024 is projected at R3.4 billion, closely aligning with sales figures from the previous year. February saw international sales hit a remarkable milestone of R600 million, followed by an impressive R700 million in April.
Notably, more than two-thirds of these sales were concentrated along the Atlantic Seaboard and in the City Bowl, areas renowned for their scenic views and vibrant lifestyles.
Ross Levin, the licensee for Seeff Atlantic Seaboard, highlighted the noteworthy uptick in sales.
‘April alone saw international buyers investing around R530 million in our area. Sales activity across nearly all suburbs has been robust, with Camps Bay and Bantry Bay recording the highest values and Sea Point and the CBD seeing the most transactions,’ he stated.
Investors hailing from over 40 countries have contributed to this real estate boom, with German buyers leading the charge, followed closely by those from the UK, Netherlands, Switzerland, and other parts of Europe. Notable is the marked increase in purchases made by American buyers, who primarily favoured properties in Sea Point, Bantry Bay, Mouille Point, and the City Bowl.
Furthermore, a welcomed resurgence of interest has been noted from buyers across Africa. Investments have been recorded from a dozen African nations, including Angola, Nigeria, and Ghana, with Nigeria standing out as having the highest sales volume.
As Levin adds, ‘The entire market across the Atlantic Seaboard and City Bowl remains highly active, yet we are experiencing a shortage of stock, creating excellent opportunities for sellers,’ Indeed, recent notable sales include two transactions to German buyers priced at R21 million and R29 million in Camps Bay and the Waterfront, respectively, in addition to a R29.5 million sale to a buyer from eSwatini at the Waterfront.
The international appetite for Cape Town properties also extends to suburbs like Constantia and Bishopscourt, alongside False Bay areas such as Muizenberg and Fish Hoek, and the Southern Peninsula areas like Kommetjie and Scarborough.
In Hout Bay, agent Marlene Picksley achieved a record sale of R16.5 million to a buyer from the USA, further evidencing the area’s appeal.
Manager for Seeff Hout Bay and Llandudno, Stephan Cross, noted that the suburb has seen a staggering demand from foreign investors, with 37 sales recorded in 2023 to buyers from various countries, including Germany, the Netherlands, and the UK.
‘Buyers in Hout Bay typically spent between R5 million and R25 million. The market dynamics here have also reflected high activity levels in tandem with low stock availability,’ he remarked.
Total sales for Hout Bay have already surpassed R600 million this year, adding to the R1.3 billion recorded last year, keeping pace with the Covid-boom of 2022.
Levin attributes this international interest in Cape Town’s properties to its alluring Mediterranean climate, vibrant cultural lifestyle, and premium amenities.
‘Not only do international buyers contribute significantly to property investments, but they also tend to spend more intensely on lifestyle and upgrades, generating a notable influx of foreign income into the local economy.’
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Foreign investment drives growth in Western Cape’s property market
Picture: Supplied
Source: Seeff
