The average prices of Cape Town Property on the Atlantic Seaboard in Cape Town have more than doubled since 2012, and are up nearly seven fold since 2001. And there’s no sign of a slowdown, yet, with a “massive” and still accelerating growth of 23% in the fourth quarter or last year.
Five areas of Cape Town Property outperformed the overall average house price growth seen across the metro over the past five years.
– Atlantic Seaboard ( Green Point to Hout Bay)
– City Bowl
– Eastern Suburbs (Woodstock, Salt River, Pine lands)
– Southern Suburbs ( Rondebosch to Muizenburg)
– Southern Peninsula ( Simon’s town Fish Hoek)
The trend of semigration to the Cape from especially Gauteng has certainly helped demand. Also for foreign buyers Cape Town still offers great value with a weak rand and superb lifestyle, however these buyers only count for a small percentage of overall buyers.
Property expert John Loos from FNB believes that a little over-exuberance has probably crept into the market, especially in the two regions ( City Bowl and Atlantic Seaboard) that have vastly outperformed the rest.
He points to topography as one of the obvious major supply-side drivers, but adds two others : the city’s “growing traffic congestion challenge” as well as “the fact that some of the city’s prime business and employment nodes, most notably the CBD and Claremont, are in close proximity to the mountain.
This should imply a longer-term shift in a portion of residential Cape Town Property demand towards areas closer in proximity to the Cape Peninsula, and we believe it has.