Cape Town :
Foreigners are continuing to invest in the Cape Town property market on the back of a weaker rand, the city’s popularity as a destination and value-for-money houses in the luxury segment of the market.
All the leading estate agency groups and property experts have all agreed that 2014 was the year of a notable increase in the level of foreign buyers and they expect this to increase year on year.
The majority of the foreign property buyers are mainly from Germany, the UK, Switzerland, UAE , Australia and USA.
Foreign buyers have been responsible for as much as 12% of the total sales in the Atlantic Seaboard.
We believe the increase is due to an improved economic outlook in the UK and Northern European economies resulting in tourism to the city improving, and to more confidence on the part of foreign buyers to once again invest in offshore property. The continued weak rand being a boon for foreign buyers.
However the highest prices for Cape Town property are still being paid by South African buyers.
The most sought after areas of Cape Town to buy property are The Atlantic Seaboard which includes Camps Bay, Bantry Bay, Clifton, Sea Point, Green Point, Hout Bay, Mouille point and The Waterfront. Parts of the Southern Suburbs including Constantia, Bishopscourt, Newlands.
There is still a real shortage of good property on the market, both the sellers and estate agents seem to be driving the prices up to levels not seen since the boom times of 2005-2007.
In one case an estate agent friend of ours said that he no longer values apartments in the traditional way of comparing what’s on the market and getting an average price per square meter, he now simply asks the seller what they want for their property and if its around 10-20% of their valuation it will be listed. It is then sold within a few days.