Cape Town’s hot property locations

13 Sep 2011

Cape Town remains a sought-after property location for many home buyers and property investors looking for exclusive homes, say estate agents.

The attention to detail in this elegant family home is evident in the five bedrooms all of which have en suite bathrooms, reception rooms, executive study, and kitchen with fitted appliances that has open plan design to the family home.

However, they urge would-be buyers to do their homework to ensure they make a good property investment. The secret for buyers is to invest in areas that will remain in demand.

The city has consistently been ranked as having a slightly better economic growth rate than Gauteng at around 4.4 percent compared to Gauteng’s 4.3 percent, says Samuel Seeff, chairman of Seeff Properties.

He says Cape Town boasts the highest percentage of foreign buyers in the country as reported by FNB to be 5 percent of all buyers in the metro compared to the national average of 3 percent.

“All of this speaks to the buyer and investor confidence in the metro’s property market,” says Seeff.

He says the performance of the real estate market as a whole needs to be seen in the context of the country’s general economic climate and that of the global markets.

“History shows that the metro’s property market has the propensity for some of the highest capital growth in the country.”

Seeff explains that during the pre-2008 boom period, Cape Town was achieving average house price growth rates of between 12 and 15 percent.

Seeff Atlantic Seaboard managing director, Ian Slot, explains that between 2009 and 2010, Atlantic Seaboard house prices grew by an average of 12.6 percent.

As an example, he says the latest figures for Camps Bay show that in the price bands between R10 million and R15 million since 2008,  property sellers have achieved average capital growth rates of between 14 and 16 percent, higher than the Atlantic Seaboard average.

Furthermore, in the higher price band, from R15 million to R30 million, nine properties have been sold in the area since 2009 with an average capital appreciation of 31 percent, he adds.

In the Southern Suburbs, sellers in areas such as Upper Claremont, Upper Kenilworth, Bishopscourt, Upper Rondebosch and Newlands were getting up to 34 percent annual appreciation on their investment between 2003 and 2007.

These stylish apartments in the heart of Claremont offer an upmarket space for an executive lifestyle.

Seeff reports that the highest demand this year has been in the more affordable price bands of R3 million and below which have done exceptionally well as buyers look to get into the more affordable areas of the Southern Suburbs.

Graham Gavin, broker/owner of RE/MAX Premier reports that property investors love the Southern Suburbs of Cape Town thanks to the mountainous backdrop that stretches from Devil’s Peak to Silvermine.

Buyers are particularly drawn to the area because it has good schools and universities. He says the Southern Suburbs offers older-style homes and cottage-style homes in areas including Mowbray, Claremont and Wynberg to the more ornate and larger homes in Constantia, Bishopscourt and Newlands.

“The Southern Suburbs are situated close to the Cape Town CBD and there is easy access to the freeways and shopping centres,” says Gavin.

He says entry level homes in the Southern Suburbs are priced between R600 000 and R1.2 million, mid level homes range from around R1.5million to R3.5 million. 

Top end homes are priced between R4 million and R8 million and luxury homes cost between R10 million up to R35 million depending on location and finishes. 

“Property is a long-term investment and should be viewed as such for investors to see good returns on their property investments,” he says.

Pam Golding Properties (PGP) reports that Wynberg, one of the city’s oldest suburbs and home to a large concentration of historically significant buildings offers great value for money.

Whether a buyer is looking for a family home, starter home or a quaint cottage for downscaling purposes, Wynberg is the place to go.

PGP’s area manager for the Southern Suburbs, Howard Markham, says Wynberg has a wide variety of residential properties, from well-preserved Victorian cottages to townhouses in secure complexes and substantial family homes set in large gardens. 

“Prices vary quite considerably within the suburb and a typical entry level property such as a two-bedroomed cottage with a small garden, costs around R1.2 million,” says Markham.

A standard family home or three-bedroomed townhouse in a secure complex can be purchased for around R1.7 million, at the top end of the market, more luxurious family homes in the large gardens of Upper Wynberg/Trovato can cost in excess of R6 million. 

In Wynberg Chelsea on Wolfe Street, this double-storey home with two bedrooms and elegant courtyard is being sold through Pam Golding Properties for R2.75 million.

“Currently the most demand is being seen in the price range around R1.5 million to R2 million, resulting in a shortage of stock in this price bracket.”

He says buyers of these homes are mainly young families with interested buyers downscaling coming from suburbs such as Constantia.

In Wynberg Chelsea, smaller cottages can very occasionally be obtained for around the R1.5 million mark and a two-bedroomed townhouse can cost between R2 million and R2.5 million or more.

Trovato Estate, located on the upper slopes of Wynberg Hill, is highly sought-after for its secure environment.

There are fewer than one hundred homes and the area is characterised by many smaller homes in need of some renovation, which can be obtained from around R3.5 million. 

Larger homes with established gardens and those already refurbished to modern luxury standards can cost up to R8 million. Due to its hillside location, the area also offers magnificent views across the valley and all the way to the sea.

Prime location, Camps Bay continues to attract buyers seeking the ideal coastal lifestyle, says Basil Moraitis PGP area manager for the Atlantic Seaboard and City Bowl.

The view from a home in Deep Glen, Camps Bay, which is being marketed by Pam Golding Properties for R28.995 million. The home occupies a double plot totalling 1734 square metres and offers seven en suite bedrooms as well as a spacious two-bedroomed guest apartment.

“For many buyers, Camps Bay is not just their first choice of suburb, but the only choice,” says Moraitis.

He says for those buyers looking for properties in the top-end market and who are generally not under pressure to buy or sell in a hurry, it is worth waiting to find the right home that meets all their requirements.

“Buyers in the current market are extremely discerning, and demand value for money regardless of the size of their budget. “But it is clear that they are still buying,” he says.

Moraitis says statistics indicate that on average, 12 homes were sold per year in Camps Bay in 2009 and 2010. These homes were priced over R10 million.

The trend is continuing into 2011 and there are six sales recorded in this price range in 2011 so far, five of them concluded by PGP, he adds. – Denise Mhlanga

Readers' Comments Have a comment about this article?  Email us now.

Why is there always such a disproportional emphasis placed on the Atlantic Seaboard and Southern Suburbs when it comes to being labelled the only "hot property locations"? What lifestyle indicators are being employed / used to predetermine whether the area are in fact a "hot property location" or not? Isn't it time to investigate such generalized statements - or shall I say "dated" conceptions that "hot" are weighed according to probably median prices only? - Benhard 

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