Gauteng buyers have greatly shaped the Cape property market. After a decline in semigration during the water crisis, the semigration market picked up notably by late 2020 and especially over the last year, says Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl. This is in part due to an ability for remote working and people wanting space and outdoor lifestyles.
A recent Lightstone report notes that some 43% of Gauteng buyers moved out of the province in 2020, up from 39% in 2019. Most of these make their way to the Cape. In terms of the general movement of people, some 35% of semigration buyers in fact moved to the Cape last year.
Levin says aside from relocations to Cape areas such as the Atlantic Seaboard and City Bowl, there has been a notable uptick in investment into second homes. The area also has a vibrant investment market given that it has high demand for residential and holiday rentals.
Following the pandemic-induced market decline, we have seen a notable bounce-back, aided by renewed semigration and second home purchases across the Atlantic Seaboard and City Bowl, he says further.
Transactions over the last twelve months amount to over R7.8bn. While about 76% of sales fall below R10 million, a notable 64 sales were concluded above R20 million to the combined value of over R2.4 billion. The market is currently so hot that some twelve high value sales were recorded for February.
Levin says semigration buyers easily comprise around 20% of buyer enquiries and are mostly from the greater Johannesburg and Pretoria area. They are typically happy to spend a bit more on property in Cape Town partly due to Gauteng being the wealth hub of SA.
This modern 5-bed Camps Bay villa with spectacular sea views, on the market for R35 million, is among those to be seen at the Sandton Expo from 26 July to 1 August
They tend to invest in a diverse choice of homes, from apartments to houses and villas across the price bands ranging from around R3 million for an apartment to well over R30 million for a villa. We have also seen strong semigration interest and purchasing in our new luxury security estate, The Ridge Estate.
Cape Town continues to be the best run metro in the country which is an important draw card. You can add to that the quality of life and beautiful coastal setting which is complimented by excellent service delivery, infrastructure and amenities.
Many people come here and set up their own businesses while those who can, will commute to Joburg, he says. The Cape is also renowned for its excellent schools and there is a wide choice of tertiary educational institutions including UCT and Stellenbosch, both highly ranked universities.
As a primary second home destination, Cape Town and the Atlantic Seaboard and City Bowl in particular is a highly desired property investment prospect, says Levin. While the highest volume of sales is below R10 million, we have also seen excellent activity to around R18 million along with high value trophy home sales.
The city is very accessible with direct flights of under two hours from Joburg. Over the holiday seasons, it is packed with Joburgers and visitors from all over the world seeking the sun, beaches and other attractions and indulging in the cosmopolitan lifestyle which is akin to some of the best in the world.
To meet the current high demand from Gauteng buyers and investors, Seeff will be exhibiting a showcase of properties in Sandton City from the 26th of July to the 1st of August. This will make it easier for Gauteng buyers to get a sneak peak of what is on offer and to chat to property experts about moving, or investing in property.
This is also a great opportunity for sellers looking to expose their properties to Johannesburg buyers to list their properties now, he concludes.