Demand for property in Cape Town is booming as tourists return, foreigners buy local property, and South Africans emigrate from the country’s northern regions.
This is feedback from Pam Golding CEO, Dr Andrew Golding, who said they are seeing a significant increase in demand from tourists and South Africans wanting to semigrate to the Cape.
Aside from increased demand for tourism, Cape Town is also benefiting from a surge in semigration from various regions, generally to the north of the country.
In addition, international upheaval has made the Cape an attractive proposition for numerous international buyers, Golding said.
Prospective buyers are particularly attracted to the well-managed Cape Town Metro and the diverse lifestyle offerings from the Atlantic Seaboard with its vibrant V&A Waterfront to the vineyards and tranquillity of the Southern Suburbs.
Cape Town has already seen an influx of international buyers active in the market – not only in the top end but across all price ranges, demonstrating confidence in the City’s property market.
Dr Golding said another factor is that South Africa offers exceptional value for money.
In Cape Town, for example, $1 million will enable you to acquire a residential property of approximately 200 sqm. For comparison, the same price tag will only secure 33 sqm in New York, 34 sqm in London, 43 sqm in Paris, 44 sqm in Sydney and 17 sqm in Monaco.
Furthermore, this does not compromise on the lifestyle offered in South Africa, which is among the best on offer elsewhere in the world, said Dr Golding.
Importantly, this segment of the market also remains relatively unaffected by interest rate hikes as more affluent buyers are relatively unaffected by them.
International buyers comprised 5.4% of Pam Golding’s total sales, with purchasers from around the world, including the UK, Germany, the USA, Netherlands, Belgium, Nigeria, Canada, Switzerland, Botswana, China, Italy, Congo, France and Lesotho.
Their locations of choice vary considerably, including the Cape Atlantic Seaboard, Cape Winelands, Whale Route, and the Garden Route towns of George, Knysna and Mossel Bay being the most popular.
This has contributed to the Western Cape having the strongest growth among the three major regions during the past four years, including the year to date, with KZN following in second spot.
In terms of the performance of metros, Cape Town is again streets ahead, with the growth in property value being the greatest among all South African cities.