Following the South African Reserve Bank’s recent decision to cut the repo rate to 7%, confidence in the property market is on the rise - particularly in key Western Cape regions.
Ryan Greeff, CEO of Quay 1 International Realty, says the 25 basis point drop is a much-needed boost: “Lower interest rates have historically brought about a surge in market activity, especially from first-time buyers who often struggle with high borrowing costs.”
Adrian Goslett, Regional Director and CEO of RE/MAX Southern Africa, agrees that the rate cut is well-timed. “This may be a modest decrease, but it’s a positive step toward restoring a more growth-friendly environment and unlocking pent-up demand in the housing market,” he says.
Yael Geffen, CEO of Lew Geffen Sotheby’s International Realty, echoes the sentiment but adds a word of caution: “It’s certainly great that the financial pressure on households will ease slightly in the short term... but we’re on the precipice of an economic disaster, and while this rate cut will help for now, it might come back to bite us in the long term.”
READ: What the rate drop means for buyers, sellers, and homeowners?
According to Quay 1 International Realty, these are the key high-growth and slower-growth areas in Cape Town. As affordability improves and spring approaches, activity is expected to pick up across various market segments. Below, we explore which suburbs are showing the most promise - and which ones are lagging - as buyers and investors plan their next moves in this evolving landscape.
Premium areas like Clifton, Camps Bay, Llandudno, Sea Point, and Green Point are among the fastest growing in the country, with annual price increases ranging from 10% to 20% in some suburbs.
- Llandudno values have soared 135% since 2019, reaching R27 million by 2025.
- Strong demand from wealthy local, semigrant, and international buyers continues to fuel yields and capital growth.
Inner City & Renewing Suburbs
Areas such as Woodstock, Salt River, and Observatory are experiencing rapid gentrification and booming rental yields often between 8% and 12%.
- Ongoing urban renewal, vibrant creative communities, and demand from students and young professionals drive momentum.
Northern Suburbs: Durbanville & Bellville
These suburbs offer strong fundamentals, including good schools, a family-friendly lifestyle, and commercial growth, making them increasingly attractive with upward price trends.
READ: SA property hotspots and cold zones: Where growth is happening in Pretoria and beyond
Strong capital appreciation in the entry-to-mid-range market has been driven by affordability, coastal lifestyle appeal, and infrastructure improvements.
- Well-priced apartments and homes offer excellent yields and are in high demand.
Suburban ‘Growth Corridors’: Somerset West, West Coast & Garden Route Towns
- Somerset West: Family-friendly with large estates, schools, and close to Cape Town International Airport. Property development is expanding rapidly.
- Coastal towns (Langebaan, Yzerfontein, Still Bay): Popular among retirees, holiday rentals, and semigrants; prices rising steadily due to high demand and low supply.
- Garden Route (George, Mossel Bay, Knysna): Particularly George is booming thanks to relocation trends and improving infrastructure.
Cooler / Slower growth areas
Allenby Areas at Mature Peaks
- City Bowl and Atlantic Seaboard remain strong but face tight supply and very high prices, limiting affordability-driven growth.
READ: Buyer favourites: The 4 most-searched family homes this month
Lower Demand Suburbs
- Some lower-tier coastal or inland areas with limited amenities are lagging in price growth despite regional momentum.
- Areas lacking strong infrastructure or rental demand have not seen significant gains compared to hotspots.
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