Property value in the Western Cape and especially Cape Town is on a continuous upswing. Exclusive suburbs along the Cape Peninsula are extremely popular with foreign buyers, but South Africans too are opting for Cape Town when looking to invest in property.
The Western Cape Department of Economic opportunities says the province is becoming a hub for business prompting growth in all areas including the property market.
In Bantry Bay, Camps Bay, Clifton, properties can range from tens to hundreds of millions of rand and its value for money.
Alan Winde, MEC for Economic Opportunities, says property value in the city of Cape Town grows faster than inflation.
This a direct result of economic growth and the development of the province as a business hub.
“There are parts of the Southern Suburbs where your properties are escalating between 13 and 16% in value per year, which is phenomenal… and there are other areas like Khayelitsha itself where we’re looking at between 7 and 11% escalation per year – so we’re seeing across the board good property price increases,” said Winde.
Winde says a recent study by FNB shows its not only foreigners investing in the province’s property market.
More than 50% of bonds originating out of Gauteng for a second home or repeat buyers come to the Western Cape. The means to obtain property is no longer only estate property market driven.
Auctioning property has grown considerably in the last five years.
“It’s a quick, easy process because for seller it’s a cash purchaser, there’s no suspensive conditions, which is really important. They’re getting a cash buyer, they’re not out there in the estate agent market where for example, property is sold subject to a bond obtained, or subject to another property being sold, they’re getting an offer not an option… and what the estate agent market is doing is giving these people options, and not offers, and we’re coming with an offer which is secured,” Claremart CEO Jonathan Smiedt says.
Smiedt says the property market in the province is healthy and there is a lot of demand in all areas.