Cape Town’s suburban areas, particularly the Southern Suburbs, are witnessing a surge in property demand, driven by young professionals and families seeking a desirable lifestyle, Cape {town} Etc reports.
This follows a notable trend of semigration buyers migrating from other provinces, alongside tenants flowing in from various regions.
As a result, sellers in these areas are reaping the rewards of unprecedented interest, achieving remarkable price returns as the market dynamics tilt in their favour.
James Lewis, licensee for Seeff Southern Suburbs, describes the current market as one bursting at the seams with demand but plagued by low stock levels. ‘This creates incredible opportunities for sellers to secure top prices,’ he notes.
The average house price within the Southern Suburbs now falls between R4 million to R8 million, an increase of over double in the last decade.
Constantia and Bishopscourt lead the charge
Among the top performers is Constantia, where the property market has seen rapid appreciation in value.
Nikki Edenborough and Faith Knight from Seeff report that sales have already totalled approximately R1.8 billion this year, with values having doubled to an average of R9.3 million over the past ten years.
The area’s reputation for a prestigious, high-quality suburban lifestyle is proving irresistible for buyers.
The competitive nature of the market is underscored by recent successful sales.
One property sold for R5.2 million, exceeding the asking price by R300 000, drawing in six offers. Another property achieved its full asking price of R9.5 million within just one day after listing, reflecting a 10% increase compared to a similar sale only months prior.
Focusing on Constantia Upper, the market is thriving with sales exceeding R1.2 billion this year alone, with properties priced on average at R21.4 million.
Notably, 21 sales have been recorded above R20 million, including two that topped the R100 million mark. Francois Venter, lead agent for the Seeff Uppers Team, reports that their team has closed on 12 high-value properties priced from R19 million and upward just in Constantia and Bishopscourt.
Data from Propstats reveals Bishopscourt has seen a significant volume of sales, with 16 transactions above R20 million taking place this year.
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Bergvliet, Rondebosch and Claremont thrive
The neighbouring area of Bergvliet is similarly experiencing a property boom, with rapid sales creating a waiting list of eager buyers.
Sharyn Dabbs of Seeff highlights that the previous two years exhibited robust sales volumes with significant price increases, bringing the average selling price to over R5 million. Homes are snapped up, often within a single day to a month, with sellers achieving prices close to or at their asking amounts.
In Rondebosch, buyers are keen on the area, pushing sales to record highs amid fierce competition. Charmaine Scott-Wilson from Seeff notes that properties are selling quickly, many within a week, with over half reaching their asking prices.
The average price sits around R7 million, yet buyers are prepared to shell out up to R25 million for desirable listings.
Rondebosch East is also a hotspot for first-time buyers and investors, with Mariam Rahman from Seeff highlighting a significant 50% price increase for sectional title properties over the last decade.
Families transitioning from rentals are drawn to the area’s family-friendly environment, top-notch schools and easy access to local religious institutions factors that further entice sellers.
Meanwhile, sales are brisk in Claremont and Lynfrae, with properties frequently changing hands before even being listed. Belinda Keys from Seeff has seen homes sold within days and achieving peak prices, with the average now at around R4.9 million. Notably, she set a new record with a recent Lynfrae sale that reached R8.895 million.
Woodstock, Salt River and Observatory gaining traction
The areas of Woodstock, Salt River, and Observatory (Obs) are also witnessing a revival in property transactions, returning to pre-pandemic levels and even exceeding them in Woodstock.
Propstats data indicates that nearly half of all properties sold in these areas move within a month, and many achieve this within as little as a week.
Craig Algie from Seeff notes that the area’s proximity to the CBD and the newly developed Riverlands precinct, as well as the Amazon headquarters, is creating an influx of young professionals eager to live close to work, further driving demand and opportunities for sellers.
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