Cape Town is renowned for having some of the highest property prices in the country, and the statistics released in the latest FNB Property Barometer indicate that this trend is unlikely to change any time soon. In fact, the Western Cape’s property price growth rate of 13.8% in the last quarter of 2014 was more than double the national average of 6.6%.
To get a better idea of the real driving forces behind Cape Town’s premium property market, we chat to two Rawson Property Group franchisees who specialise in some of the Western Cape’s most affluent suburbs.
Camps Bay is a favourite with locals and foreigners alike, and certainly checks all the boxes when it comes to lifestyle. Set against the spectacular backdrop of the Twelve Apostles mountain range, the suburb sprawls down steep hillsides to palm-tree-lined, white sand beaches, which are bordered by trendy restaurants, bars, cafés and shops.
“Some of Cape Town’s wealthiest residents can be found in Camps Bay,” says Ryan Hamburger, Sales Agent for the Rawson Property Group’s Sea Point franchise. “Apartment prices start at around R3 million and houses around R7 million, but a prime location with panoramic views can push prices well into the 8-digit region.”
Hamburger is quick to dispel any misconceptions that Camps Bay’s premium properties are all foreign-owned, however. “There’s a high demand from locals who want to live in Camps Bay,” he reveals. “It’s home to over five-thousand families, and has great schools and sports facilities, not to mention the fact that it’s only ten minutes away from the city centre – it’s very convenient.”
Camps Bay residents are a mix of young, old, single, married, families, locals, foreigners, and everything in-between. “The biggest draws to the area,” Hamburger says, “are the chic beachfront lifestyle and the breathtaking ocean and mountain views. Those are things that you can’t find in many other places, and they appeal to all ages, and all nationalities.”
According to Hamburger, it is this universal appeal that is largely responsible for the high price-tag of properties in the area. “Demand is very high,” he says. “It’s not foreigners that are pushing the prices up – it’s having a lot of buyers and not enough stock. You also have to take into account the limited availability of prime plots with exquisite views,” he points out, “as well as the modern design and expensive finishes you expect in high-end homes.”
Cape Town’s appeal isn’t limited to her beachfront properties, however, and the leafier Southern Suburbs frequently boast property prices just as jaw-dropping as their seaside counterparts. Constantia and Bishopscourt, in particular, are as famous for their top-dollar properties as they are for their pastoral ambiance, mountain views, mature trees, and lush greenbelts.
“The lifestyle definitely plays a huge role in attracting buyers to these areas,” says Nancy Todd, the Rawson Property Group’s franchisee for Constantia. “The plots are large – an acre or more – and houses often have their own tennis courts, swimming pools and even stables. There are forests to walk or ride in nearby, and Table Mountain is minutes away for more serious hikes – but it’s still conveniently quick and easy to get to top schools and business hubs.”
Prices in Constantia start at R5 million, with the current peak at R75 million for Tarrystone – Earl Spencer’s former home. Bishopscourt homes start at R10 million, with a record high of R43 million.
“Owners in the area are very mixed, despite the higher-than-average prices,” Todd reveals, “but there is a predominance of families as the costs to maintain the large grounds are often easier to justify with children to enjoy them.”
“There are fewer foreign buyers than one might imagine,” she continues, “and we see a lot of locals moving into the area, from young entrepreneurs to mining moguls and black diamonds, as well as Jo’burgers looking for a refuge from the ‘Big Smog’.”
As in Camps Bay, Todd ascribes the prices in Bishopscourt and Constantia to high demand and relatively short supply. “The cost of land, views, building and the expensive finishes also plays a role,” she adds, “as do the extensive plots and, of course, owners’ expectations.”
Contrary to popular belief, it seems that property prices in Cape Town’s most affluent suburbs are not, in fact, being inflated by foreign dollars. Neighbourhood experts agree that the increasing growth is far more likely a result of the exclusivity of limited availability combined with a unique and luxurious lifestyle that is difficult to find anywhere else.
For further information please visit the Rawson Property Group’s website at www.rawson.co.za.
