Market shifts make room in Cape Town market for new contenders

News > Market & Opinion - 04 Jun 2019

After a tumultuous three years, a number of significant shifts have begun to notably impact the real estate market, which is clearly evidenced by a recent Lightstone report revealing current purchasing trends in the Western Cape, including the latest top suburbs and streets.

For a number of years, Lightstone’s annual lists of the city’s wealthiest streets and suburbs remained largely predictable, with the Atlantic Seaboard and Bishopscourt featuring prominently on both, but this year the picture is a little different with the usual suspects making way for newcomers.

In 2017 and 2018, three of the highest valued streets were in Bishopscourt and last year it also ranked as the wealthiest suburb - but this year it failed to make the list at all.

Clifton has also been nudged off of both lists completely after featuring for several years, with only Llandudno representing the Atlantic Seaboard this year in the top-ranking suburbs (first place).

Constantia, on the other hand has been firming its position after making the list last year as the third most expensive suburb in Cape Town, a position it retained this year, along with fourth place being taken by Bel Ombre, an enclave within the tranquil suburb which also scooped fourth most expensive road.

Two other newcomers are Stellenbosch and the City Bowl, where Higgovale came in as the sixth most expensive suburb and Oranjezicht made the list with the fourth most expensive street. De Bosch in Stellenbosch snuck in as the second highest valued suburb.

According to experts, although the subdued economy and political turmoil have certainly been influential factors, changing buyer preferences and priorities have also contributed to the shake-up.

Joanna Thomas, Area Specialist in Constantia for Lew Geffen Sotheby’s International Realty, says that over-and-above security, lifestyle and perceived value for money have become increasingly important to buyers and Constantia ticks both boxes.

“Constantia has a distinctly country atmosphere with a village centre which offers locals all the essential amenities, as well as top eateries and the recent construction of cycling tracks and pedestrian pavements, has added to the appeal.

“The area is particularly popular with families wanting space for the kids to play and it offers plenty of space for outdoor leisure activities as well as so many different sports and social clubs.

“And, with sectional title plots and new builds coming on to the market for the first time, the suburb now also caters for the growing move towards low maintenance homes and gardens.

Thomas adds that investors have also become more conscious of finding value for money and Constantia certainly offers better value for plot and house size than more built up areas like Claremont and Newlands, with a broader price range and a more accessible entry point than Bishopscourt.

There has been a growing demand for homes in upmarket estates which offer exceptional lifestyles or cater to specific needs, like those with equestrian facilities and championship golf courses, so it’s no surprise that an estate like De Bosch has made it onto the list.

Chris Cilliers, CEO and Principal for Lew Geffen Sotheby’s International Realty in the Winelands, says: “Ultimately, estates like these offer the best of both worlds – the convenience of easy access to top-class amenities that have been tailored to meet their needs as well as a tranquil and secure lifestyle.

“And De Bosch delivers on every front. It’s a small secluded and very upmarket estate with very generous stands of between 5000m² and 7000m², with large designer homes and world- class equestrian facilities which include paddocks and an indoor equestrian centre.”

“According to Andrew Amoils, head of research at New World Wealth,” says Cilliers, “South Africa is one of the global pioneers in residential estate living, second only to the USA in the number of estate developments.”

Although the market in Cape Town has slowed significantly since 2016, the city’s property growth still remains above the national average.

And the top three inflationary growth suburbs in the Western Cape during the last year, namely Sillwood Heights in Eerste Rivier, Voëlklip near Hermanus and Hospital Hill in Worcester, are also enjoying the spotlight for the first time.

economy buyers property market luxury property
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