It’s the perfect time to sell your luxury property, as Seeff reports that Cape Town luxury home sales are booming.
Did you know buyers swept up 160 luxury homes priced over R20 million on the market over the past two years? These numbers might surprise you if we consider the COVID-19 pandemic and its economic impact. Yet, the Seeff Property Group reports that the pandemic boosted luxury home sales to over R100 million.
It is worth noting, however, that most of those luxury homes sold in 2022, achieving close to R3 billion in value. It’s been a terrific year for luxury home sellers. Indeed, with the end of 2022 in sight, there is still time for hopeful sellers to put their homes on the property market and achieve these attractive profits.
Ross Levin, a licensee for Seeff Atlantic Seaboard and City Bowl, reports that Cape Town is fast becoming a hot destination for semigration and international buyers - buyers who appear to be driving the demand for these luxury homes. Direct flights into Cape Town continue to increase, and Seeff is optimistic about the impact this activity will have on the economy and property market.
Buyers hail from all over; several luxury homes on the Atlantic Seaboard recently went to buyers from Gauteng. In contrast, international buyers flock from Germany, the United Kingdom, the United States, Switzerland, Finland, France, and Austria.
80% of luxury home sales concluded in the Atlantic Seaboard’s suburbs, specifically in Camps Bay, Clifton, Bantry Bay, Fresnaye, and the Waterfront. New World Wealth reports that Cape Town is home to the highest number of luxury homes and achieves the highest prices (on average).
Oranjezicht and Higgovale, in the City Bowl, achieved ten luxury home sales. Seef also sold eight high-value homes in “The Ridge Estate” in Tamboerskloof, which hit new records with prices over R16 million for vacant land. In Bishopscourt and Constantia, luxury home sales are booming too. Since the start of 2021, 35 Constantia luxury homes valued at over R20 million have sold, and Bishopscourt boasts eight high-value sales with prices over R20 million. Francois Venter, luxury market specialist for Seeff Southern Suburbs, comments: “The market for luxury homes across the “Uppers” areas remains very active.”
A recent sale by luxury sectional property title Property Practitioners for Seeff, Adrian Mauerberger and Bryan Ginsburg saw a luxury home in Bantry Bay sell for R72 million to a German buyer. The location of this 398sqm apartment is the prestigious “Aurum”, and the sale set a new record per square metre with R180,905/sqm. Another notable Bantry Bay joint sale went for R22.6 million to a buyer from Switzerland.
In March, Clifton received the highest rate of R165,468 per square metre. Previously, Bantry Bay held the title for the highest rate with R135,731/sqm (paid in April 2019), and the Waterfront came in third place with R111,111/sqm (paid in May 2019). Recently, a luxury apartment on the Waterfront sold for R50 million to a buyer from Austria. A German buyer snatched up a unit at The Waterclub in Granger Bay for R24 million, and a local cash buyer bought a luxury unit in Aquarius in Mouille Point for R21,7 million in a joint sale.
In Camps Bay, two luxury home sales went for R23,995 million and R23,9 million to buyers from the United States and the United Kingdom. In Fresnaye, local Cape Town buyers concluded two deals for R43.5 million and R23 million. Meanwhile, Constantia luxury home sales boast R30,75 million, R26 million, and R39 million. In Bishopscourt, Seeff also concluded a luxury home sale of R39 million.
The upcoming summer signals increased buyer activity, particularly from international and semigration buyers. While economic pressures are a real threat to the property market, Seeff believes that the Cape Town property market will fare better, thanks to the demand for luxury homes.
If this article piques your curiosity, you might be interested to read Seeff’s blog on why so many people are moving to the Western Cape. If you are ready to sell your own luxury home, read this blog on selling privately vs with a Property Practitioner.