Just last year, it was a seller’s market in Cape Town. Today, things look much differently. The past month we’ve been seeing headlines such as ‘Property prices in popular Cape Town areas decrease’ and ‘Cape Coastal property lag benefits holiday investors’.
The price decrease has hit all the areas most popular with local and foreign property investors – from the Atlantic Seaboard to the Southern Suburbs.
Cape Town property prices down by 5.1% year-on-year
From 2015 to 2018, property prices in Cape Town increased by an eye-watering 34%. Then South Africa’s economy suffered some turmoil and the effect was seen on the housing market.
In November, property group Pam Golding’s annual property market review report revealed that, during the 12-month period under review, Western Cape sales accounted for 24.8% of national property sales. This was down from 30% in the previous period, after increasing from 20% to about 30% from 2013 to 2016.
More recently, in the past month, FNB released their latest Cape Town Sub-Regional House Price report which illustrates the decline in Cape Town property prices. As reported by the Citizen, price growth turned negative in the City Bowl, Southern and Eastern Suburbs, along with the Atlantic Seaboard, in the first quarter of 2019. On average, prices decreased by 5.1% year-on-year, the worst performance to date.
Here’s why this should interest you
The decline in Cape Town property prices means you can now find excellent value along with motivated sellers in the Mother City. Anyone who’s kept an eye on the property market can tell you that some properties stay on the market for much longer than was typical a year ago.
And why wouldn’t you want to buy in Cape Town? It’s been voted one of world’s best cities to live in, Table Mountain has been named Africa’s Top Tourist Attraction, and The Test Kitchen was named one of the 50 best restaurants in the world.
Let’s compare Cape Town property prices to the rest of the world
To illustrate exactly how much value you’re getting in Cape Town, we decided to ‘shop around’.
We wanted to show you how much your money can get you in the Mother City compared to other big cities around the world.
Our choices were London, New York and Berlin. The prices below are quoted in Rand and you can see that Cape Town properties per square metre is the best buy by far:
|Cape Town||London||New York||Berlin|
|Price per Square Metre to Buy Apartment in City Centre||37,935.48||231,711.84||195,039.76||91,256.50|
|Price per Square Metre to Buy Apartment Outside of Centre||18,586.37||133,265.78||86,204.55||62,556.33|
Here’s how we can help finding your next property in Cape Town
SAHomeBuyers (SAHB) is part of the Intergate Group and help foreign nationals find their dream homes in South Africa, whether the stay is permanent or temporary. Unlike estate sales agents, SAHB acts in the interest of the buyer, not the seller.
SAHB will not only help you navigate South Africa’s property buying legalese but also:
- Take the hassle out of the buying process. SAHB will do all the legwork, like finding the properties that best suit your wish list.
- Accompany you on all viewings to act as an expert pair of eyes. Our agents will check for problem areas and advise actions accordingly.
- Assist with the Offer To Purchase, which is a binding document in South Africa.
- Save you money by negotiating the best price for the property.
Get in touch via phone or email
If you’d like assistance with finding your Cape Town property, you can get in touch with SAHomeBuyers either via phone or email:
- Phone: +27 (0) 83 265 8800
- Email: email@example.com
There’s no telling for how long the property market will stay in favour of the buyer, so our advice is to take advantage of the current situation while you still can!