The South African suburb where the average house costs R27 million
The suburb of Llandudno in Cape Town had the highest average price for a property in 2024 at R26.5 million, with the maximum price paid for a property in the area being R45 million.
This is according to Lightstone Property’s 2024 in-numbers report, which compiled data regarding the buying and selling activity in South Africa’s residential property market in the past year.
The data revealed a property market under pressure, with the number of transactions declining amid elevated interest rates and a stagnant economy.
Data from other sources emphasises a residential property market under strain, with BetterBond’s home application index showing a steady decline since interest rates began rising.
The latest report from BetterBond shows that home loan applications are still 28% lower than in the first quarter of 2022 before interest rates rose to a 15-year high.
The value of building plans has also declined by 20% in real terms over the past three years.
Interest rates were held at 15-year highs by the Reserve Bank for an entire year to ensure that inflation was sustainably beaten down.
In September last year, the bank began its cutting cycle by reducing rates by 25 basis points. This was followed by two more 25 basis points cuts in November 2024 and January 2025.
The pressure is expected to last for some time as there is a significant delay between changes to interest rates and the impact felt by households, with the lag period typically around six months.
However, while this significantly impacted buying and selling activity within the residential property market, the value of sales continued to rise.
This was largely driven by big-ticket purchases of expensive properties located in the Western Cape and the Garden Route. The buyers of these properties tend to be immune to interest rate changes.
The top ten suburbs with the highest average price for a property are all in Cape Town. All of the top 27 most expensive suburbs can be found within the Western Cape.
Llandudno came out on top with an average price of R26.5 million across the 15 sales in the suburb. The maximum price paid for a property in the area was R45 million.
While Llandudno had the highest average price for a property, other suburbs had higher maximum prices.
Bishopscourt, Clifton, and Bantry Bay all had a property sell for a maximum price of R50 million in 2024.
The soaring price of properties in the Western Cape and Cape Town, in particular, has been driven by a combination of factors.
Of these, the main drivers have been the semigration of South Africans from Gauteng, wealthy foreigners buying up property, and the longer-term trend of land scarcity in desirable suburbs along the coast.
While some international buyers see South African property as a financial investment, most seek permanent or holiday homes, which they can enjoy during retirement.
Many of the homes purchased by foreigners are located in Cape Town’s Atlantic Seaboard or in the Wineland regions.
The top ten most expensive suburbs by the average price paid in 2024 are listed in the table below.
Suburb | Average price paid | Maximum price paid |
Llandudno | R26.5 million | R45 million |
Bishopscourt | R23 million | R50 million |
Clifton | R20.1 million | R50 million |
Constantia Heights | R18.4 million | R48 million |
Constantia | R18.2 million | R34 million |
Alphen | R17.7 million | R40 million |
Bel Ombre | R16.4 million | R45.5 million |
Steenberg Golf Estate | R15.3 million | R30 million |
Waterfront | R14.2 million | R43.8 million |
Higgovale | R13.8 million | R32.5 million |
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