Amidst the tumultuous environment of the property market over the last several years in South Africa, Cape Town has not only remained stable in house price inflation but shown significant growth thanks to foreign investors and migration from other provinces.
Lightstone has recently analysed data of several million properties in the province and penned the annual inflation rate at 3,9% and the monthly rate of 0,27%.
One of the most interesting findings is the comparison of value and volume of properties between Cape Town and Johannesburg.
During 2008 the Rand experienced its most dismal period to date performing exceptionally low against its global counterparts and the property market experienced negative growth on a national scale.
Annual property inflation experienced similar growth nationally over the next four years. After 2012 however, the Western Cape and the City of Cape Town became increasingly more attractive to potential buyers as evident in the below graph:
Even though many predicted that the water crisis and talks of Day Zero would see a mass exodus from the Mother City, this was not reflected in the volumes of sales; on the contrary, the province is increasingly attractive in all three major property types.
Looking at the most expensive suburbs in Cape Town, Bishopscourt’s is the most expensive with an average value of R17 100 000, followed by Llandudno, Constantia Heights, Clifton, Steenberg and De Bosch in Stellenbosch.
In an analysis of the highest growth in estate living and most expensive homes located in these estates the findings are as follows:
With most property prices on the rise, first-time buyers are looking at more affordable options in lower cost suburbs like Pelikan Park, Khayelitsha and Parklands.
Even though the forecast for the Cape Town property market remains stable for 2018, this could be subject to changes dependant on government’s planned land expropriation without compensation strategy. In the interim, the appetite for foreign investments in the Cape Town property market will provide the required strength within the industry, and the demand for secure estate living will continue where both freehold and sectional title should enjoy much-needed growth.