Cape Town’s high-end real estate market has shown unexpected growth, with sales nearly reaching R800 million during the first quarter of 2024.
Also read: Cape Town offers best property rates of SA’s cities for 2024/25
According to Lightstone data, South Africa boasts a robust property market, as purchase prices averaged below R1.5 million. Between January and March, about 47 276 transactions worth just over R65 billion were recorded.
About 71.4% of these transactions were below R1.5 million, while transactions between R1.5 million and R3 million accounted for 19.7% of the market.
Although only 9% of property transactions were above R3 million, this sector generated R23.7 billion (about 36%) at an average price of around R5.5 million.
Most of these sales were for freehold properties, accounting for nearly 50% of all transactions. These properties were sold at an average price of just over R1.5 million.
Conversely, sectional titles sold at an average of R1 million.
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Furthermore, the majority of all transactions took place in Cape Town, particularly in the Atlantic Seaboard and City Bowl suburbs and the Southern Suburbs.
Clifton, Camps Bay and Constantia saw the highest volumes of sales, exceeding R20 million.
As reported by BusinessTech, 32% of sales were made to international buyers, including:
- Three German buyers (R20 million, R23 million and R24.5 million)
- Two Swiss buyers (R20 million and R21 million)
- Individual buyers from the UK (R38 million), Netherlands (R37 million), Belgium (R25 million) and the USA (R25 million)
The number of properties that sold for R20 million and more in Clifton, Camps Bay and the Waterfront has increased over the past three years, says Ross Levin, a licensee for Seeff Atlantic Seaboard and City Bowl.
Over the same period, Constantia and Bishopscourt saw some of the R20 million-plus sales. Seeff says buyers seem to be taking advantage of the flat price growth, which has been averaging between 2% and 3%.
The FNB House Price Index also noted that the average price growth could remain weak at 0.7%.
While some areas performed better than expected, some price sectors achieved better sales than last year, says Samuel Seeff, chairman of the Seeff Property Group.
‘The highest price bands have been more active in some areas, mostly the Cape coastal areas, while the lower price bands continue to feel the strain of the higher interest rate.’
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Also read:
Renting vs buying: Finding your place in the property puzzle
Picture: Stephan Louis / Unsplash
