Property sales in Cape Town boom as global investors converge

Buyers flock to Cape Town, breaking high-value sales records from the Atlantic Seaboard to Constantia 

Seeff reports that Cape Town's property market is garnering unprecedented attention, especially from international buyers hailing from Germany, the United Kingdom, and even the United States and Russia. As we near the end of the third quarter, the market has already surpassed the total international sales figures for both 2021 and 2022.

This surge is fueled by both high-value transactions and an increasing number of buyers taking advantage of favourable currency rates. Sales through July of this year have reached over R2.1 billion, according to Propstats data. That's an impressive 50% increase compared to the R1.44 billion for all of 2021 and a 12% rise over the R1.88 billion recorded for 2022.

What's particularly interesting is that these purchases aren't just for secondary homes. A growing number of buyers are relocating to Cape Town for retirement, employment opportunities, or to start new businesses.

Property Sales in Cape Town vs. Europe

As Europe grapples with soaring inflation, many buyers are eyeing Cape Town and its excellent property value. With its breathtaking beaches, natural wonders, and unique attractions like local wine farms, Cape Town is more than just a property investment - it's a lifestyle upgrade.

But it's not just the quality of life that's drawing attention; it's also the affordability, especially when compared to European markets. If you're looking to invest below the R10 million range, you'll find that your money goes significantly further here than in Germany or the UK, according to Ross Levin, Property Practitioner for Seeff Atlantic Seaboard and City Bowl.

To put it in perspective, while €1 million might get you a modest two-bedroom flat in Germany, the same investment could secure a luxurious home in sought-after Cape Town neighbourhoods like Constantia or Bishopscourt.

Levin notes that the current exchange rate - around R19 to the dollar - provides a substantial boon to buyers. Unlike the rate two years ago (R14 to the dollar), buyers now save about 35%. For example, a R30 million luxury villa in Camps Bay that would have cost approximately USD2.2 million two years ago now comes with a price tag of around USD1.6 million.

Property Sales in Cape Town: Popular Areas

According to Ross Levin, a remarkable R1.44 billion (69%) of total sales occurred in the Atlantic Seaboard and City Bowl suburbs. Despite winter typically being a slower period, May and July each saw about R220 million in international sales, with March peaking at R280 million.

Notable sales have also happened in Fish Hoek, Scarborough, and Blouberg, as well as in Hermanus and Stellenbosch. Francois Venter, lead Property Practitioner for Seeff in Constantia and Bishopscourt, reports sales including R25.5m in Constantia (Nigerian buyer) and R20m in Bishopscourt (UK buyer).

Sales Manager Stephan Cross also notes a rise in sales in Hout Bay and Llandudno, especially from German buyers, attributed to the favourable exchange rate and Europe’s economic and geopolitical landscape.

Areas that achieved the highest prices this year:

• Clifton: Highest international sales include R150m (went to a Russian buyer) and R53m (went to a buyer from the USA).
  
  
• Fresnaye: R71.25m (and it went to a Russian buyer).
  
  
• Camps Bay: R41.6m (UK buyer), R35m (Netherlands buyer), R35m (French buyer), and R27.35m (German buyer). Property Practitioner Nadine Jocum reveals that Camps Bay has consistently attracted international and South African expat buyers since the pandemic and recently due to the Russia-Ukraine crisis. 
  
  
• High-value sales were also noted in Bantry Bay, Sea Point, and Higgovale, primarily from UK and Zimbabwean buyers.

Property sales in Cape Town show no sign of slowing down. For more advice on how to sell property in the current market and attract high-income, international buyers, contact Seeff Property Group.

If you’re selling your home, explore our garage conversion ideas to add value to your home. You may also be interested to learn why having an en-suite bathroom can add value to your property.