Cape Town – Cape Town remains a popular choice among property investors and buyers, according to Dr Andrew Golding, chief executive of Pam Golding Properties.
The Atlantic Seaboard, which is space-constrained because of the mountains and the sea, continues to deliver high property prices.
As for the city centre, Golding said the “development boom” continues. The Silo and Roggebaai districts in the Waterfront Marina Estate are examples. They include 5-star hotels, head offices of big companies and top-end motor dealerships. The trend for contemporary mixed-use developments – retail, offices and residential units – will continue in the Harbour Arch development by the Amdec Group. It will be Cape Town’s largest mixed-use development in the CBD, ultimately consisting of seven individual tower blocks – similar to Melrose Arch in Johannesburg.
The demand for property in Cape Town’s northern suburbs has been high, according to Golding.Secure estate living is popular in suburbs such as Durbanville. Two properties in the security estates of Welgedacht sold for R9m each, while a record price of R8m was achieved for a property in Durbel. Another trend is an emerging super-luxury property market in Plattekloof where a home was listed for R21.5m.
“The northern suburbs offer value for money. There are excellent schools, medical facilities and outdoor activities,” said Golding.
“With the Tyger Valley Waterfront becoming an established economic hub, an investment in properties in the surrounding area offers sound return on investment.”
Sales in the southern suburbs of Cape Town picked up towards the end of last year, according to Golding. In Rondebosch, for instance, one of the top sales was a home for R15.5m. Along the South Peninsula there was significant house price escalation, particularly in suburbs like Kalk Bay, St James and Noordhoek. In St James entry-level apartments were selling for upwards of R3m, while homes with great views obtain premium prices. Two such homes along Boyes Drive were sold for R10.5m and R11.37m respectively. Fish Hoek is popular with younger buyers, who want access to the schools in the area. It is also still a popular suburb in the traditional retirement market.
The suburbs along Cape Town’s Western seaboard – from Milnerton through Blouberg to Melkbosstrand – were among the top five performing regions in the Cape and one of the city’s fastest growing residential areas, according to Golding.
Mitchell’s Plain and Eastern suburbs
There have been fewer sales these suburbs, but at the same time property prices have increased. Many of the buyers are first-time homeowners or people looking to downscale. A new record price was set for a residential property in the suburb of Grassy Park at R1.9m. Sectional title units are also selling well in these suburbs, where the age profile of buyers is becoming younger. A unit in the Olive Grove complex sold for R750 000, for example.
This article was first published by Fin24 on 10 January 2018