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
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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