WORDS: STAFF REPORTER :: IMAGES: SUPPLIED
As Europe struggles with high inflation, Cape Town has become a viable Plan-B for top-end buyers in search of a quality lifestyle shift.
European buyers are on a winning streak as a weak rand and economic and geopolitical challenges propel high value property sales in Cape Town. This is according to Seeff Property Group, who shares that sales for this year to the end of July already amount to over R2.1 billion (per Propstats sales data), which is 50% higher than the R1.44 billion for the whole of 2021, and 12% higher than the total of R1.88 billion for the 2022-year.
Ross Levin, Seeff licensee for the areas, notes that R1.44 billion (69%) of the sales were concluded in the Atlantic Seaboard and City Bowl areas. While activity usually slows over winter, some R220 million in sales to international buyers was recorded for May and July, with March clocking up the highest figure at R280 million.
More for less
Levin says the fairly flat price growth at the top end of the market combined with the weaker rand has been a boon for buyers. At around R19 to the dollar, buyers are paying about 35% less compared to two years ago (when it was R14). A R30 million luxury Camps Bay villa which would have cost around USD2.2 million two years ago, now only costs the buyer around USD1.6 million.
He adds that if you are purchasing below the R10 million range, it becomes even more affordable compared to what German or UK buyers can get in their home countries. These buyers also enjoy coming to Cape Town and many spend extended periods of time here. Currently, even wealthy local investors can get considerably more for their money in SA than what they could elsewhere.
While many of the international sales fall below R10 million, several high value sales have been concluded, mostly to buyers from Germany, the UK and other European nationalities. There has also been an increase in sales to Russian buyers, as well as buyers from the US. Aside from second homes, some are buying for relocation to retire, work or start a business.
Camps Bay, Atholl Rd
Popular Camps Bay
And the money keeps flowing in. The highest prices paid by international buyers this year include R150m in Clifton (Russian), R71.25m in Fresnaye (Russian), R53m in Clifton (US), R43m in Clifton (UK buyer), and R41.6m in Camps Bay (UK buyer). High value sales were also concluded in Bantry Bay at R28.5m (UK), Sea Point at R21m (UK) and R22.7m (Zimbabwe), and in Higgovale at R28m (Zimbabwe) and R22.5m (Germany).
Camps Bay recorded the highest number of sales to international buyers, ranging from R25 million to R41.6m to UK buyers, two sales of R35m each (Netherlands and France), and R27.35m (Germany). Nadine Jocum, an agent with Seeff Camps Bay, indicates that the suburb has been at the top of the list for international and SA Expat buyers since the onset of the pandemic, and again with the onset of the Russia-Ukraine war.
She says they love the Cape Town climate and stunning coastal lifestyle. In turn, international buyers are an important element, as they create a cosmopolitan vibe, and support the local economy, which includes restaurants and retail, architects, builders, interior designers, and more.
Bishopscourt (Bishopscourt Dr)
Viable Plan-B
Francois Venter, lead agent for Seeff Southern Suburbs Uppers (Constantia and Bishopscourt), comments that buyers from the UK, Germany and other European countries are finding good value, and South Africa has become a Plan-B for them.
“SA is only a short flight of about 12 hours, we are in the same time zone and offer a fantastic lifestyle. On top of that where Euro 1 million will only purchase a two-bedroomed flat in Germany, you can find a luxury R18 million home in beautiful Constantia or Bishopscourt,” he says.
Sales here include R25.5 million in Constantia sold to a Nigerian buyer as a holiday home, and R20 million in Bishopscourt sold to a buyer from the UK.
Notable spike
The Hout Bay and Llandudno area has also seen an uptick in sales to international buyers, especially from Germany according to Stephan Cross, Seeff’s sales manager for the area. He has seen a steep increase in the R10 million-plus sector in Cape Town, especially in Hout Bay. He attributes this to the favourable exchange rate, and economic and geopolitical instability in Europe.
In Cross’s view, buyers are turning to other growth markets and looking for marked lifestyle shifts as Europe struggles with high inflation. The Mother City is viewed as well-run, and offers a sustainable and quality lifestyle which is augmented by spectacular beaches, nature and other attractions.
High value sales concluded to international buyers in Hout Bay include R20m (Belgium), sales of R9.5m, R10.995m and R12.75m to German buyers, R10.9m to an Italian buyer, and R9m to a UK buyer. Sales in Llandudno include R27m (USA), R26.5m (UK) and R24m (USA). Notable sales were also recorded in Fish Hoek, Scarborough, and Blouberg, as well as further afield in Hermanus and Stellenbosch.
