Samuel Seeff, chairman of the Seeff Property Group, says the Cape Town property market is enjoying significant demand from semigration buyers
The Cape Town property market is where everyone wants to be at the moment. If you are looking to sell, then it’s worth taking advantage of the influx of buyers in this area and listing your property. If you are looking to buy property, then the Cape Town property market is exactly where you want to invest right now.
What is Driving the Cape Town Property Market’s Growth?
The property market’s growth can be attributed to many technology-based services, such as Amazon and Takealot, setting up head offices in the Cape Metro. Ross Levin, Property Practitioner for Seeff Atlantic Seaboard and City Bowl, reports that many buyers and businesses also flock to Cape Town because they’re seeking a better quality of life.
Ross Levin adds that the coastal suburbs are experiencing a significant surge in the number of semigration buyers. These high-end buyers from areas such as Gauteng and now also the Kwa-Zulu Natal region see the Cape Town property market as a good investment opportunity.
The commercial property market, in particular, is enjoying the benefits of this positive trend. A report from FNB confirms that the commercial property sector in Cape Town is outperforming other areas, and semigration is also playing a key role in driving property development.
The Role of International Buyers in the Cape Town Property Market
International buyers are jumping at the chance to buy a home in the Cape Town property market. These buyers hail from various European countries like Germany, the United Kingdom and the Netherlands. They are eagerly seeking new property investment opportunities, in part due to the ongoing war between Russia and Ukraine. A recent sales report shows evidence of these investments.
So far this year, there have been 51 sales above R20 million - with a combined value of R1.767 billion.
Property Prices in the Cape Town Property Market
Luxury sectional title property experts at Seeff Atlantic Seaboard, Adrian Mauerberger and Bryan Ginsburg, have pointed out an impressive upswing in the desire for luxurious flats, particularly in the R4,5 million to R8 million bracket. The demand has been so intense that several buyers have been willing to pay as much as R72 million for a supreme beachfront apartment, while properties in the R3 million to R18 million price range are rapidly becoming scarce in the market.
Nadine Jocum, a Property Practitioner from Seeff Camps Bay, has observed a considerable demand for properties in Camps Bay, especially those valued above R5 million; luxury homes and apartments priced between R11 million and well beyond R20 million are highly sought-after.
Similarly, several locations, such as Stellenbosch, Hermanus, and Paarl (especially in Val de Vie and Plettenberg Bay), have seen property transactions consistently exceed the R20 million mark.
You may consider homes in the Cape Town property market a pricey investment, but alternatives exist. Suburbs like Milnerton and Blouberg offer more affordable living options with properties under the R1.8 million mark. These areas have been witnessing a substantial influx of semigration-related sales and rentals, which is good news for sellers and landlords.
The Cape Town rental market is also going strong because of the increasing demand. Landlords, take note of these popular areas for tenants:
- Blouberg.
- False Bay.
- Southern Suburbs.
- Northern Suburbs.
- Paarl.
- Stellenbosch.
- Somerset West.
With the help of a qualified Property Practitioner you can successfully sell property in Cape Town or simply find your dream home. Trust Seeff to help you navigate the Cape Town property market. With over half a century of expertise in buying and selling properties, we understand it is more than just a transaction - it is a new chapter in your story, and we would be honoured to write that next chapter with you.
When it comes to buying or selling property, we've got you covered. Contact your local Seeff Property Practitioner today.
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