Cape Town is still SAs top property location
The South African residential property market has seen better days as the rand weakens against the dollar, global economies struggle and the repo rate enters a hiking cycle.
This four bedroom en suite house for sale inClifton, Cape Town, is built over three levels offering sea views from all aspects. The home has an entertainment deck with stacking doors, as well as an audio room, jacuzzi and green features. It is selling for R31 million - click here to view.
However, according to Bruce Swain, MD ofLeapfrog Property Group, it would seem that theCape Town property market is the exception to the rule, as agents continue to cite stock shortages and buyers and sellers alike remain confident in the long-term value of homes in the Mother City.
“Unlike other parts of the country, our agents in theWestern Cape, and specifically in Cape Town and surrounds, have continually reported stock shortages, especially in the R1.5 million to R3 million market segment,” says Swain.
According to the FNB Property Barometer, 2nd Quarter 2015 Western Cape House Price Index, the average house price rose 7.7% year-on-year.
While this is slower than the previous quarter’s 8.2% rate, and more noticeably down from a high of 10.4% house price inflation reached early in 2014, John Loos, Household and Property Sector Strategist for FNB, points out that the province still had the strongest house price growth of the major regions in SA.
It was followed by the Eastern Cape’s 6.8% rate, KZN’s 5.9% and Gauteng’s 4.6%.
This two bedroom apartment selling in De Waterkant, Cape Town, is situated on Loader Street. The property has a courtyard, front porch, storeroom and guest cloak room. It is on the market for R3.95 million - click here to view.
Loos reveals that the average house price for the Western Cape was R1 230 487 in the second quarter, making it the province with the most expensive homes on average. House prices within the Mother City were slightly higher than elsewhere in the Western Cape, at R1 265 766.
Gauteng was the second most expensive province, with a standard house price of R1 011 214.
“The fact that the province has often had the fastest pace of price growth in recent times, may have much to do with the province’s growing popularity as a destination of a significant group of the country’s more affluent ‘repeat home buyers’, and its status as the country’s second fastest long-term growth economy,” says Loos.
“It also typically has a relatively low rate of departure, for either emigration or ‘semigration’ purposes.”
Swain says he agrees with Loos. “Leapfrog figures certainly indicate that more and more South Africans from other parts of the country are looking to the Western Cape as a stable area with good governance and a secure property market, making it an attractive home base, as well as an investment area.”
This one bedroom flat for sale in Sea Point, Cape Town, offers sea views. The apartment has been renovated, and is very close to the promenade. The property includes a covered parking bay, and is selling for R2.495 million - click here to view.
If a property is correctly priced, it’s not on the market for long, says Swain. “In fact, our agents advise buyers to do their homework and have themselves pre-approved for a home loan as properties are scarce and tend to sell quickly.”
The FNB Property Barometer 2nd Quarter 2015 Western Cape Estate Agent Survey corroborates this finding in that it reveals that properties in the Western Cape stay on the market for an average of 9.1 weeks, down from an estimated 20 weeks in 2013, and significantly shorter than the current 12.1 week national average.
“It would seem that the Cape Town residential property market truly is outperforming every other urban hub and, as long as properties remain correctly priced, there is no reason to think that this will change anytime soon,” says Swain.