Cape Town tops R21.75 billion in transactions for the 12-month period to end November at an average transaction value of R2.2 million. The metro also scooped the highest prices paid for residential property in the country this year according to Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl.
Comparatively, Pretoria metro reached around R17bn (ave of R1.2m), Sandton R13.4bn (ave of R2.3m), Johannesburg R13bn (ave of R1.483m) and Durban R6.4bn (ave of just over R1m).
The wealthy might not be buying as much as they used to, but Cape Town still tops their list of most desirable property, says Mr Levin. Atlantic Seaboard and City Bowl sales amount to R4.3 billion including 30 of the highest prices paid.
The rental market has also performed exceptionally despite the headwinds. Seeff has concluded rentals of up to R170,000/month in Fresnaye, R130,000 at the Waterfront, R120,000 in Bantry Bay and R60,000/month in Tamboerskloof in the City Bowl. Holiday rentals this summer is expected to reach R100,000-R250,000/night in Clifton.
Semigration buyers are back and Mr Levin says that sales are often delayed only by the slow sales cycles in Gauteng and other inland provinces. Foreign buyers too have invested over R500 million in property with the highest demand from German, UK and US buyers.
Cape Town achieved about 50 high-value sales priced from R20m-R60m compared to just two in the upper end of Sandton/Johannesburg and a highest price of R23 million.
The highest prices paid include: R60m in Fresnaye, R58.5m in Bantry Bay, R47m in Bishopscourt, R45m in Clifton, R39m in Higgovale, R36.5m in Llandudno, R36m in Camps Bay, R34m in Constantia Upper and R32m in Mouille Point. We are likely to see a few more high value sales over the summer, says Mr Levin further.
Notable too, is that 9 of the top 10 suburbs in the country are now in Cape Town, up from seven about three years ago. These all now boast a median price of over R10 million and over R20m for Clifton, says Mr Levin. Only Sandhurst in Sandton/Johannesburg is included in the top 10 ranking:
|4||Bantry Bay||Atlantic Seaboard||R16.5m|
|7||Camps Bay||Atlantic Seaboard||R14.9m|
|10||Constantia Upper||Southern Suburbs||R12.2m|
The Southern Suburbs enjoyed an active year and is not just home to two of the top suburbs in the country but offers a high concentration of top performing schools which drives demand, says James Lewis, managing director for Seeff Southern Suburbs, Hout Bay and Llandudno.
Total sales of almost R4.5bn has been achieved including six high-value properties ranging to R34m in Constantia and R47.5m in Bishopscourt. Although the sub-R10m price band dominated, the “Uppers” such as Claremont and Kenilworth Upper have attracted prices of up to R20m (Claremont) while Newlands achieved eight sales above R10m, and Rondebosch achieved a further 6.
The Southern Suburbs rental market has been a top achieving sector this year, says Mr Lewis. Student rentals and young professionals kept the sectional title rental agents busy while upper-end family tenants paid up to R80,000-R100,000/month in top-end areas such as Constantia.
Crowning another year of top accolades, Cape Town was voted best city in the world for the seventh successive year by the UK’s Telegraph Newspaper. The Cape has lost none of its sparkle says Mr Levin. It is the second wealthiest city in the country and upper-end buyers will spend 100%-200% on average more on real estate purchases on the Atlantic Seaboard compared to anywhere elsewhere.
As the premier tourist strip, Seeff expects another bumper holiday season with many visitors taking the opportunity to investigate real estate. Samuel Seeff, chairman of the group says that it is a great time to buy luxury real estate. The upside of the down market is that there are considerably higher levels of stock to choose from while many sellers who were hesitant this year will now be ready to sell and will be coming to the party this summer.