The allure of luxury homes in Cape Town for international buyers

Extravagant luxury homes in Cape Town achieve record sales as international buyers dominate the market

The luxury property scene in South Africa, particularly for homes priced above R20 million, has been thriving this year, especially in Cape Town. Seeff highlights how Gauteng buyers' growing fondness for Cape Town's super luxury properties contrasts with the more subdued - and surprising - sales in Johannesburg and Sandton's high-end market. Not to be left out, international buyers have also been active, with their purchases in the Cape Town metro crossing the R3.3 billion mark.

In Cape Town, at least 100 sales have exceeded R20 million across the metro this year, accumulating a total value of over R3 billion. While these figures are a tad lower than last year's, they still represent a significant leap from the sales seen in 2019, before the pandemic hit. 

Luxury Homes in Cape Town: The Atlantic Seaboard

Zooming in on specific locales, the Atlantic Seaboard has been a hotspot, accounting for 60% of these transactions. Ross Levin from Seeff points out the heightened interest in both villas and apartments among the wealthy, a sign of the varied appeal of Cape Town's property market. Even Sea Point and Mouille Point apartments have been fetching prices north of R20 million.

Gauteng buyers are making a splash on the Atlantic Seaboard, snapping up luxury properties with an eye for exclusivity and grandeur. The Waterfront has seen an apartment go for a whopping R43 million, while Bantry Bay has been equally impressive, with a flat and two houses fetching R43 million, R24 million, and R20 million, respectively. 

Camps Bay

Camps Bay, with its stunning vistas and upscale charm, has not been left behind, boasting house sales at R40 million, R31.5 million, and R27.5 million. The area has become a magnet for upcountry and international buyers, leading the pack in the volume of super luxury sales. 

Clifton

With its breathtaking views and prime location, Clifton has topped the charts in terms of price, averaging a freehold selling price of R50 million and boasting three staggering sales ranging up to R150 million.

Luxury Homes in Cape Town: Southern Suburbs

The Southern Suburbs, comprising Bishopscourt and Constantia, have also witnessed a record-breaking year, thanks to Francois Venter, the lead Property Practitioner for luxury sales in the Seeff Southern Suburbs and Constantia areas. This area has seen a flurry of properties for over R20 million, with Claremont and Newlands contributing their share of high-end sales.

Top 10 Suburbs for Luxury Home Sales Above R20M in 2023

Source: Seeff (based on Propstats data).

The Appeal of Luxury Homes in Cape Town

This year's outstanding sales in Cape Town's luxury property market have been significantly buoyed by 'semigration' trends and international buyers seeking second homes in the city, notes Ross Levin. Interestingly, these international buyers appear less concerned about local economic or political climates, drawn instead by the city's incredible lifestyle and exceptional value.

Nadine Jocum, a Seeff Property Practitioner in Camps Bay, highlights that about 30% of the high-end property sales were to international buyers, with the majority originating from the United Kingdom (UK) and Germany. The appeal? The unparalleled natural beauty of Camps Bay, nestled between the mountain and the sea, and its proximity to Cape Town's other picturesque suburbs, the bustling Waterfront, the Central Business District (CBD), and the renowned wine farms. Specifically, UK and German buyers have been active in the Camps Bay area, predominantly purchasing properties valued above R20 million.

The American buyers have also been making their mark, mainly focusing on Clifton and Llandudno. Meanwhile, Russian buyers have shown a preference for Clifton, Bantry Bay, and Fresnaye. These suburbs, as Levin points out, are among the most beautiful in the world, boasting stunning locations along the Atlantic coastline.

For Buyers: Best Luxury Homes in Cape Town

For those with a discerning eye and a budget ranging from R20 million to R100 million, Cape Town offers some of the most luxurious homes you could wish for. Ross Levin provides a glimpse into what your money can buy in this spectacular city:

• In Bantry Bay, imagine owning the stunning Aurum Presidential Apartment. Priced at R98 million, this lavish residence spans an entire floor, boasting five ensuite bedrooms, extensive living spaces including a media room and study, expansive terraces, and even a private heated Jacuzzi/splash pool.
  
  The perks continue with a storeroom, garaging, and the convenience of concierge and valet services.
  
  
• For R38 million, Fresnaye offers a luxury penthouse that defines elegance. Positioned high up for breathtaking panoramic ocean views, this home features three ensuite bedrooms, a chef's dream kitchen with top-of-the-line appliances, a scullery, and multiple living areas that flow onto an expansive entertainment terrace.
  
  
• At the Waterfront, a luxurious apartment awaits for R37.5 million. Situated on the Front Yacht Basin, it offers stunning views, three ensuite bedrooms, each opening onto a balcony, spacious living areas, a TV room, a wrap-around terrace, and two undercover parking bays and a storeroom.
  
  
• Finally, Sea Point presents a grand 600 sqm duplex penthouse for R27.5 million. Located on the Sea Point Promenade, it offers unrivalled views, an elevator servicing both floors, four ensuite bedrooms, vast living areas, two basement parking bays, and panoramic views from every room. 

Ross Levin anticipates the demand from international buyers to persist into 2024, especially as many international buyers often make their purchases in the early months of the new year. The weaker Rand, when compared to major currencies like the dollar, pound, and Euro, also offers an attractive incentive for international buyers, making this an opportune time to invest in one of the world's most beautiful cities.

Are you considering acquiring a luxury property in Cape Town? Contact Seeff today to explore luxury homes in Cape Town.