Cape Town – Property buyers are flocking to Cape Town’s Atlantic Seaboard and City Bowl area, and they are coming from all over.
Licensee for Seeff Atlantic Seaboard and City Bowl, Ross Levin, said six of the highest sales in Cape Town concluded this year were to buyers from Gauteng who paid between R26 million and R66m for houses on the exclusive Atlantic Seaboard.
Buyers from KwaZulu-Natal paid between R28m and R37.5m for properties in Clifton, and R33.5m in Fresnaye.
International buyers, mostly from Europe, continue seeking a second home in Cape Town as they look to escape some of the challenges in those countries.
German buyers have for example bought homes for up to R30m in Camps Bay while Dutch buyers have spent up to R68.25m in Camps Bay, and UK buyers up to R59.95m in Clifton.
Stock shortages almost across all price bands are now evident after a successful first half of 2024, said Levin.
The market is now favourable for sellers, and he says properties might actually be worth more than what sellers are suspecting.
While most upper-income markets have struggled, especially in Johannesburg, the Cape Town property market has continued to surge ahead.
That is not to say that there are no challenges, but Levin said buyers are signalling their confidence in Cape Town by investing in bricks and mortar.
Almost 900 properties worth over R5.5 billion have already sold across the whole of the Atlantic Seaboard and City Bowl this year, he said.
About 80% of these sales were sectional titles, mostly apartments.
That said, freehold houses sold make up about 43% of the total value of sales (R2.41bn), although it only comprises about 20% of sales activity this year.
Almost 80% of sales for the Atlantic Seaboard related to apartments, and only 20% to full title houses.
Average prices remain the highest in the country with only 13% of sales below R3m, although just over half (51%) were still below R5m.
Just under one third (26%) of sales are above R10m with 9% over R20m.
The highest prices recorded for this year are for houses, being R66m in Clifton (Kloof Road), and R68.25m in Camps Bay (Atholl Road).
Clifton remains the most expensive suburb with a phenomenal average freehold house price of R43.9m, followed by Camps Bay at R21.1m, Bantry Bay and Fresnaye respectively at 16.7m, and the Waterfront at R15.1m (sectional title sales only).
The City Bowl and CBD is still more affordable with about 61% of all sales under R3m, and only 5% above R10m.
About a handful of high-end luxury houses have sold above R20m, mostly in Tamboerskloof (up to R20m), and Higgovale (up to R32.5m), and mostly to local buyers, said Levin.
The average price for a sectional title property in the City Bowl is around R2.5m, and slightly lower at R2.3m in the high-density CBD area.
The most active price range is R1.5m to R2.5m.
Freehold house prices stand at R5.5m in Vredehoek; R6.5m in Gardens; R8.8m in Oranjezicht; R10.5m in Tamboerskloof; and a significant R17.9m in Higgovale.
Levin said it is always a sign of strong confidence when people invest in property, and the data shows the confidence is not misplaced.
“Demand has continued unabated with the result that there is now a good opportunity for sellers,” he added.
Cape Argus