Cape Town South Africa Housing- Due to improved sentiment about South Africa, it would not be surprising to see an increasing demand for SA residential property among foreigners and SA expats, according to John Loos, household and property sector strategist at First National Bank. http://spacesa.com/buy-property-in-cape-town.php
Property in Cape Town is home to the country’s ten most expensive streets, where you will pay an average of R84,200 per square metre, a new report by AfrAsia Bank and New World Wealth found. http://spacesa.com/buy-property-in-cape-town.php
The South Africa Wealth Report, released on Thursday, found that these streets far outperform the rest of the country when it comes to property prices.
The most expensive street outside Cape Town is in Plettenberg Bay where you’d pay an average of R43,000 per square metre – R52,000 less than Cape Town’s most expensive street.
These are the most expensive streets for property in Cape Town and the whole of South Africa, according to the report.
The Ridge & Cliff Road – Clifton, Cape Town
Average cost per square metre: R95,000
Victoria Road – Clifton and Bantry Bay, Cape Town
Average cost per square metre: R92 000
Dock Road – V&A Marina, Cape Town
Average cost per square metre: R90 000
Nettleton Road – Clifton, Cape Town
Average cost per square metre: R87 000
Clifton Road – Clifton, Cape Town
Average cost per square metre: R85,000
Kloof Road – Clifton and Bantry Bay, Cape Town
Average cost per square metre: R84,000
Ave St Leon – Bantry Bay, Cape Town
Average cost per square metre: R80,000
De Wet Road – Bantry Bay, Cape Town
Average cost per square metre: R78 000
Ave Marina – Bantry Bay, Cape Town
Average cost per square metre: R76,000
Ocean View Drive – Bantry Bay, Cape Town
Average cost per square metre: R75,000
If you are looking to purchase property in Cape Town consider using a buyers agent such as Space Homesearch, we represent the buyer sourcing the finest property in Cape Town negotiating the highest discounts. Remember Estate Agents are not independent and their sole objective is to get the highest price for their clients property. http://spacesa.com/index.php
Cape Town Property Market : All in all, 2017 was a bad year for South Africa. As if credit rating downgrades, a lack of economic growth, growing reports of state capture, and soaring fuel and food prices weren’t enough, we also had to contend with a president who seemingly reshuffled his cabinet on a whim, removing respected ministers and replacing them with people with little or no experience in the key positions to which they had been appointed. The rand was severely affected by all this and as investor confidence dipped, so did the value of the currency.
The news that Cyril Ramaphosa had been elected president of the ANC was well received by the markets and the rand strengthened almost immediately. We are not out of the woods just yet, although rating agency Moody’s noted that Ramaphosa’s election opened up a tentative possibility of a ‘credit positive’ shift in SA policy and an increase in business confidence. Fitch on the other hand stated that although the full repercussions of Ramaphosa’s victory will be far-reaching, they are likely to remain unpredictable ahead of the 2019 elections.
We have collated some recent comments by leading real estate people in South Africa, here are a few snippets. Overall the summary is that 2018 will be a buyers market in the Cape Town Property Market.
Market Commentators Predictions for the Cape Town Property Market:
“Global financial markets have responded positively to Ramaphosa’s election, with the rand in particular rallying strongly, thereby reducing pressure on the Reserve Bank to raise interest rates. If the new ANC president is able to deliver on the market’s perceptions of a shift in SA’s political and hence economic fortunes, there is likely to be considerable pent-up demand for property – as both business and consumer confidence is likely to rebound strongly from current subdued levels.”
“When it comes to buoyancy in the property market, confidence is a major driver. The drop in the petrol price bodes well, and there’s encouraging talk about an interest rate cut…all clear confidence boosters. If the banks ease up on their stringent lending conditions this year, this will further stimulate the lower end of the market, and if stock levels subside at the higher end, we’ll see growth”
“Whereas it was a sellers’ market until early 2016, we saw a progressive shift in 2017 which manifested in lower demand, rising stock levels combined with a decline in buyer confidence, flat price growth and deals taking longer to conclude. The outcome is that we head into 2018 with a buyers market for most areas, even some Cape locations.“Even the stand-out Cape Town is beginning to slow down although it continues to benefit from a broad base of demand such as the constant flow of semi-grating buyers from other areas, investment and holiday demand”
“Fuelled by real demand, we predict that Cape Town will continue to see positive house price growth in 2018. While the very steep upward curve we are currently seeing may flatten marginally, Cape Town will remain a lucrative investment destination from both a capital growth and rental income perspective as the current growth is not a bubble”
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I came across an interesting article written by a property journalist in the UK which sums up nicely why more property buyers should retain a property buyers agent. http://spacesa.com/buy-property-in-cape-town.php
There are lots of property advertisements that bend the facts, that “emphasise the positive” and “underplay the negative” aspects of a property.
The net result of this is that potential buyers very quickly stop believing what the estate agents advertise and from the moment they enter a house, they’re determined not to be taken for a ride because they are suspicious about the estate agent’s motives.
If there was a lot more transparency in advertising then buyers might have a lot more confidence in the agent they’re dealing with.
Added to this is the principle that the estate agent is really working for the seller and always has a vested interest in making sure that they get as high a price as possible.
So of course the agent wants to persuade (if that’s the word) the buyer to increase his or her offer to secure the home they’ve been looking at.
In a lot of overseas markets there is a property sellers agent and a property buyers agent.
There are many hidden pit falls that no agent will tell you about when, for instance, you a looking at a beautiful house in Constantia, Cape Town Southern Suburbs on a Sunday at midday. Coming from London, how would you guess that to get to Cape Town City Centre on an ordinary working day you’d probably have to leave by 07:00 to make it into the office at 08:00 while out of rush hour this would take you only 20 minutes.
I would love to be told about these pitfalls well before I signed the offer – and I’m sure many other people like me would like to know about them too. And let’s not kid ourselves because the agent who is acting for the seller invariably knows exactly what the traffic patterns are like.
A property buyers agent would quickly warn me about these things – and warn anyone who was thinking of buying a property in one of those congested and overbuilt suburbs that there are just too many cars to fit on the roads at peak times.
I have no doubt, too, that banks and mortgage originators would welcome an agent acting for the buyer who was seeking a new property because they would have the added benefit of being certain that the rudimentary checks on the property were done.
They’d also have an independent “buyer’s evaluation” and that the price being asked represented fair value and that the house itself represented a fair condition.
The notion that a bank inspector is going to vouch for the property is complete nonsense: all he or she wants to determine is whether there is sufficient value in the property to adequately cover the amount being borrowed. Inspectors don’t care if the plumbing works, if the foundations are solid or the wiring is not working. That’s the buyer’s problem, not the bank’s.
So as a buyer you actually don’t have anyone protecting your investment for you: You have the agent acting for the seller trying to get you to increase your offer and you have the seller wanting as much cash as he or she can possibly muster from your account.
But who is acting for you?
There are buyers throughout the country who have the means to buy houses today and who are doing so on impetuous notion of kerb-appeal, perhaps backed by some scant knowledge of the property market (gleaned from friends and family). That’s it.
And I think that now, as the market becomes more sophisticated and more and more buyers emerge (particularly in the lower-priced sectors), there really is a need for an agent who will assist the buyer and provide a real, reliable and trustworthy service.
Buyers need as much guidance and protection as sellers do. And that applies in tough times and in good times.
Such a service as a property buyers agent will reduce the risk for the buyer, will protect the bank’s investment and will ensure that there are not a litany of complaints brought against estate agents. http://spacesa.com/buy-property-in-cape-town.php
The Western Cape property market including Cape Town is strong by national standards but are there limits to how long this market strength can continue. http://spacesa.com/buy-property-in-cape-town.php
The recent strength of the Western Cape housing market has been driven to a significant degree by demand from external sources, including buying by foreigners and more significantly by South African repeat home buyers migrating from other parts of the country.
This is a healthy driver of market strength caused by the province having managed to build a strong brand as a destination, which has a strong economy, is well managed and has a great lifestyle.
Property prices in Western Cape have increased by 54% over the past 5 years however in certain parts of Cape Town including The Atlantic Seaboard, City Bowl and Hout Bay have doubled in value.
John Loos property strategist from FNB has said that he did not believe the Western Cape had experienced an over exuberant and speculative home buying spree as the entire country had prior to 2008. He said Western Cape average house price inflation peaked at 10.8% in the first quarter, which was only marginally ahead of the prime rate percentage and therefore never created a massive “speculator’s paradise” as had happened at the height of the boom in 2004/2008
Cape Town Property average prices 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. http://spacesa.com/buy-property-in-cape-town.php
Five areas of Cape Town Property out-performed 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. http://spacesa.com/index.php