Since the resurgence of semigration in 2021, the Southern Suburbs’ real estate market has witnessed sustained activity, driven by increasing demand. Claude McKirby, Co-Principal for Lew Geffen Sotheby’s International Realty in the Southern Suburbs and False Bay, notes a significant reduction in the time properties spend on the market and a narrowing gap between asking and selling prices. The surge in inquiries for both sales and rentals, particularly in suburbs like Newlands, Rondebosch, and Claremont, highlights the robust demand.
In 2021, Newlands houses sold at an average price of R6.5 million, 11.1% below the asking price after 176 days on the market. Fast forward to November this year, the average selling price increased to R8.15 million, 7.5% below asking, with a reduced listing time of 76 days.
Similarly, Rondebosch saw an increase in the average house price from R5.3 million in 2021 to R5.8 million, with the average listing time reduced to 51 days. Claremont’s average selling price rose from R4.34 million in 2021 to R5.8 million, with houses spending an average of 69 days on the market.
The rental market across the Southern Suburbs is highly competitive, with a shortage of available properties. Free-standing houses in the price range of R15,000 to R55,000 are in high demand and don’t stay on the market for long. There’s a notable increase in inquiries from Gauteng, KZN, and abroad, with some properties being taken without viewings.
Since mid-2021, there has been a rise in inquiries in the Peninsula coastal strip from Muizenberg to Noordhoek. This area, offering a seaside village and an outdoor lifestyle at more accessible pricing than comparable coastal areas in Cape Town, attracts both local and upcountry buyers.
Semigration is not only impacting families but also businesses, leading to increased demand for business premises. Factors contributing to the market’s upward trajectory include Cape Town’s status as a global business and tourist destination, infrastructure investment, and favorable service delivery and energy supply conditions.
Year-on-year data from the Deeds Office for 54 suburbs in Cape Town reveals a steady increase in sales volumes, with sales units growing by 11.8% and 10.2%. Despite the current eco-political climate in South Africa, the Cape Town market is expected to maintain its momentum, driven by favorable conditions and ongoing demand.
