Seeff Confirms Massive Buyer Interest for Properties in the Southern Suburbs.
Seeff Southern Suburbs Property Practitioner Francois Venter states that properties in the Cape’s southern suburbs are highly sought-after; this sentiment extends past local buyers garnering significant interest from international and semigration buyers.
The value of property sales in the upper end of the market equated to around R1.5 billion; these figures far exceeded expectations in recent years and include:
- Bishopscourt
- Claremont
- Constantia Upper
- Kenilworth Upper
- Newlands
Venter confirms that sales in Constantia Upper exceeded R20 million, while sales in Bishopscourt last year reached a sales score of 19. Venter elaborates that while the speed of sales decreased compared to the increase of penthouse sales in previous years, the market remains healthy and well-balanced across all price bands.
Buyer Interest Split Between Local and International Prospects
Property for sale in the southern suburbs ranges upwards to around R25 million in suburban areas, while the average selling price for the first quarter of 2022 reached an outstanding R27 million. An example was the incredible R39 million sale Seeff closed with a UK buyer.
Buyers in both Bishopscourt and Constantia Upper were 50/50; this means 50% of buyers were local buyers and the other half came from international interest. Most of the international buyer interest came from Germany and the UK; half of these were swallow buyers looking to spend six months of the year in South Africa, and the rest were permanent buyers looking to relocate. A prime example of this was another UK buyer who spent R26 million on a home in Constantia Upper.
International Buyers Continue to Gain Momentum
According to Venter, international buyers are taking advantage of the outstanding market value; for the price of a tiny flat in Munich, you can purchase a beautiful home in the Cape, complete with the fantastic climate and lifestyle that Cape Town has to offer.
The Constantia Upper property market ended last year with a sales score of 108, worth R1.5 billion. The first quarter of 2022 was also significantly successful, with the standard selling price for properties in Constantia Upper reaching approximately R14.5 million.
Although 75% of the market falls under the R15 million price range, there is growing demand at the top end of the market, equating to over R20 million; international buyers largely contributed to this demand. On the other hand, sellers attained an average of 8.7% below their asking price during the year’s first quarter.
Suburbs with Excellent Amenities Grow in Popularity
Properties in the Claremont and Kenilworth Upper areas garnered significant interest from family buyers due to their premium amenities, including many excellent schools.
Properties in Kenilworth Upper usually sit below R7 million, while Claremont Upper is more active and falls just below the R8 million range; sellers receive around 10% below their initial agreed-upon price in both these locations. Properties in Newlands are popular with families in the R6 million to R7 million range.
On average, properties typically spend almost three months on the market, and sellers generally achieve approximately 7.8% below their asking prices during the year’s first quarter.
Correct Pricing Remains Number One Sales Closer
Venter states that while sellers are getting closer to their asking prices, proper, correct pricing remains pivotal, regardless of whether the property falls in the R2 million or R20 million price range. Accurate pricing will almost always boost the speed of sales.
Venter closes by stating that Cape Town’s southern suburbs provide a unique combination of investment and lifestyle value due to its exceptional location and nearby amenities. A revived focus on lifestyle and specifically quality living caused a significant increase in demand; this contributed to the market outlook, which remains positive and strong. Property prices remain flat with a subdued growth of about 3% to 4% in supposed terms, which means there is no better time to buy.
If you are interested in buying a property, contact one of our capable property practitioners. If you enjoyed reading this article, you might consider reading our article on how the Property Practitioners Act will affect homebuyers in 2022.
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