Several high-end Cape Town properties sold for between R26 million and R70 million this year, signifying strong performance in the South African property market, Cape {town} Etc reports.
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Pam Golding Property CEO Andrew Golding said the luxury segment of the South African housing market has experienced ‘remarkable strength’.
‘Confidence has returned to the luxury property market, driven by positive sentiment, improved financial conditions, local stock markets, and stable government.’
As per the Pam Golding Residential Property Index, national house price inflation increased to 4.7% in July 2024 – the highest since February 2022.
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Due to a significant reduction in stock levels, prices of luxury properties have steadily increased.
As a result, South Africa’s housing market looks increasingly optimistic alongside other positive indicators, such as reduced petrol prices, a decrease in interest rates, improved confidence and the extended reprieve from loadshedding, BusinessTech reports.
According to Golding, sellers, buyers and investors who were previously hesitant about transactions are now committing to them.
‘While this is an ongoing trend, since the start of the year (2024) Cape Town – with its appealing natural [surroundings] – features prominently, experiencing a surge in interest and enquiries from international residential property buyers, with individual home sales in the Southern Suburbs and Atlantic Seaboard to both local and global purchasers exceeding R20 million and ranging even northwards of R90 million.
‘These range from apartments overlooking the sandy white beaches of areas such as Clifton and Camps Bay, to the countrified tranquillity of Bishopscourt and Constantia, among others. A notable recent sale is a home in Constantia which achieved the full asking price of R54 million.’
The company sold this three-bedroom, three-bathroom luxury apartment in Clifton for R37 million to a buyer from Luxembourg as a holiday residence:
A house in Clifton was sold to a businessman from Gauteng for R70 million:
A house in Camps Bay was sold for R33.8 million:
An apartment in Mouille Point was sold for R27 million:
The company also closed individual sales on homes for more than R20 million in the Boland and Overberg regions, including a modern home in Pearl Valley at Val de Vie Estate near Paarl, which sold for R30 million to a local South African buyer.
The lower end of the property market has also seen notable improvements with lower interest rates. ‘The lower end of the market, including first-time home buyers, is particularly sensitive to the higher interest rates currently applicable,’ Golding said.
Data from Ooba home loans indicates that national applications for first-time buyers increased to 46.6% in July 2024, recovering from the previous 44.3% in June.
‘This anticipated rebound in first-time buyers is likely to see stronger demand for homes around the R1 million mark in urban nodes, which typically means sectional title properties,’ Golding added.
In addition, more self-employed individuals applied for mortgages, the percentage reaching a record 13.3% during the second quarter of 2024. During this time, cash sales spiked to a record 60.2%.
‘The recent surge in local cash buyers has seen a sharp increase in demand for investment properties, particularly in the Western Cape.’
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Picture:Morgane Le Breton / Unsplash
