select
|

Cape Town – SA’s Best Performing Residential Property Market

The South African residential property market has seen better days as the Rand weakens against the Dollar, global economies struggle and the repo rate enters a hiking cycle.

It would seem though that the Cape Town property market is the exception to the rule as agents continue to cite stock shortages and buyers and sellers alike remain confident in the long term value of homes in the Mother City. “Unlike other parts of the country our agents in the Western Cape, and specifically in Cape Town and surrounds, have continually reported stock shortages – especially in the R1.5 to R3 million market segment”, reveals Bruce Swain, MD of Leapfrog Property Group.
 
The CT market might be slowing slightly but it outperforms every other
 
According to the FNB Property Barometer – 2nd Quarter 2015 Western Cape House Price Index - the average house price rose 7.7% year-on-year. While this is slower than the previous quarter’s 8.2% rate, and more noticeably down from a high of 10.4% house price inflation reached early in 2014, Loos points out that the province still had the strongest house price growth of the major regions in SA. It was followed by the Eastern Cape’s 6.8% rate, KZN’s 5.9% and Gauteng’s 4.6%”.
 
John Loos, Household and Property Sector Strategist at FNB Home Loans reveals that the average house price for the Western Cape was R1,230,487 in the 2nd Quarter – making it the province with the most expensive homes on average (house prices within the Mother City were slightly higher than elsewhere in the Western Cape at R1,265,766.). Gauteng was the second most expensive province with an standard house price of R1,011,214.
 
Loos believes “the fact that the province has often had the fastest pace of price growth in recent times, may have much to do with the province’s growing popularity as a destination of a significant group of the country’s more affluent ‘repeat home buyers’, and its status as the country’s 2nd fastest long term growth economy. It also typically has a relatively low rate of departure, for either emigration of ‘semi-gration’ purposes”.  Swain agrees with Loos in that “Leapfrog figures certainly indicate that more and more South Africans from other parts of the country are looking to the Western Cape as a stable area with good governance and a secure property market – making it an attractive home base as well as investment area”.
 
Properties Sell Quickly
 
“If a property is correctly priced it’s not on the market for long”, shares Swain, “in fact our agents advise buyers to do their homework and have themselves pre-approved for a home loan as properties are scarce and tend to sell quickly”. 
 
The FNB Property Barometer 2nd Quarter 2015 Western Cape Estate Agent Survey corroborates this finding in that it  reveals that properties in the Western Cape stay on the market for an average of 9.1 weeks (down from an estimated 20 weeks in 2013 and significantly shorter than the current 12.1 week national average).
 
It would seem that the Cape Town residential property market truly is outperforming every other urban hub and, as long as properties remain correctly priced there is no reason to think that this will change anytime soon.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK