07 August 2023
While the majority of South Africa’s property market is taking strain under growing economic pressure, at least one luxury Cape Town suburb is bucking the trend. According to Jacques Fourie, a top-performing agent, and well-known area expert, sales in Constantia Upper are thriving.
Best known for its world-class wineries, this lush, greenbelt-covered neighbourhood boasts a surprising variety of property types and residents. Many of these residents can be seen walking their dogs and riding their horses along the tree-lined avenues, with muddy boots and ruddy cheeks as common a sight as designer boutiques and Michelin-star-worthy restaurants.
“Constantia Upper is an exclusive, yet family-friendly, suburb with easy access to some of the best public and private schools in South Africa,” says Fourie. “This is a big draw for people moving to Cape Town from Joburg and KZN – something we’re seeing a lot of at the moment.”
Fourie, who has spent almost a decade learning the nuances of the area as an agent for Rawson
Properties Constantia (on top of several years’ property experience in other neighbourhoods), says foreign buyers are also particularly active in Constantia Upper at present. Sales to German, Swiss, French, American and Dubai nationals are particularly common.
“Some are moving here permanently – often families looking to raise their children in an amazing and relatively affordable lifestyle,” he says. “Others are leveraging their stronger currencies to invest in second or third homes to be used for just a few months of the year.”
It’s not just outsiders buying into Constantia Upper, however. Fourie says the biggest market remains locals – more specifically, existing Contantia residents.
“A lot of homeowners complete their full property journey right here in the same suburb, from first home to family home to retirement spot,” he says. “That’s one of the big benefits of this area – there are properties to suit all life stages. As long as you’re not looking for an apartment, that is.”
Zoning restrictions mean apartment blocks are not on the cards for Constantia Upper. Subdivisions are also rare and time consuming, with sectional title schemes the preferred choice for optimising property use. Even the smallest erven still average around 500m2, however, with plenty of larger properties boasting at least an acre or two.
This makes for a particularly tranquil and private neighbourhood ambiance – an ambiance buyers are willing to pay handsomely for. Homes in Constantia Upper start at a cool R7million and range all the way up to R60million or more.
Unlike many other luxury suburbs, where high price points result in long waits for qualified buyers, however, Fourie says Constantia Upper properties are practically flying off the shelves.
“On paper, average time on market is 106 days,” he says. “In reality, this statistic is skewed significantly by some of the very highest end properties where sellers are prepared to wait months or years to sell. More typical properties are moving surprisingly rapidly, given economic conditions, and a lot of our listings are sold before they ever reach the public eye.”
High buyer activity levels may have something to do with the fact that most Constantia Upper buyers don’t need bank finance to cover the entirety of their purchase. According to Fourie, who has facilitated countless property transfers over his many years in the area, cash purchases and bonds of only 40% to 50% are common. This has enabled the area to remain relatively unaffected by the interest rate increases that are crippling more finance-reliant market segments.
Having plenty of qualified buyers has certainly benefitted Constantia Upper’s property price growth, which has consistently outpaced inflation. Fourie says current conditions are more balanced than last year’s strong seller’s market, but competition for the best properties remains heated.
“I’d definitely recommend buyers get their ducks in a row before making an offer,” he says. “When you find the right property, you need to be able to move fast. If you need bank finance, get preapproval in order. If you need to sell another property, do that first – particularly if that property is upcountry where sales can take while.”
The good news is, buyers don’t necessarily need to find the right property organically. Fourie says his office does a lot of proactive property sourcing for buyers looking for a home that meets specific criteria.
“I’ve personally spent nearly ten years working on the property market in Constantia,” he says. “I know this suburb, I know these properties, I know a lot the owners. If a buyer approaches our office with something specific in mind – a particular street, or property style, or features list – we know exactly where to look and how to find owners who might be open to a sale.”
As for sellers, Fourie urges a conservative pricing approach, despite strong and ongoing demand.
“Ideally, you want to be creating competition between buyers,” he says. “Getting that right means finding your pricing sweet spot. Average sales figures currently sit around 8% below listing prices, so there is some negotiating wiggle room. That said, buyers in this market segment know their business and they know good value when they see it. If that value isn’t there, there’s enough stock on the market that they don’t need to stick around.”
