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Luxury Properties in Cape Town Remain a Secure Investment

Cape Town 13 January, 2011 - Cape Town’s luxury property market (above R6 million / $900,000) despite the recession has performed much better than other segments of the market. Cape Town is regarded as one of the most sought-after destinations in the world, from a lifestyle, beauty and vacation point of view and has been greatly enhanced by the success of the World Cup.

Interestingly, despite the global slow down and South Africa’s low interest rates in 2010, cash buyers increased by 30% to 78%, clearly illustrating that when it comes to the luxury end of the market, cash in king.

Volume of sales over R6 million on the Atlantic Seaboard for the period 2009/2010 has increased by 10% year-on-year, indicating that the luxury market has sustained itself, regardless of the economic conditions.

“The Atlantic Seaboard continues to attract buyers of luxury properties in the V& A Waterfront, Sea Point, Green Point, Fresnaye, Bantry Bay, Clifton, Camps Bay and Llundudno that are viewed as desirable areas for international buyers, due to their proximity to the ocean and main tourist attractions.” says Francois Venter, regional manager for Jawitz Properties.

Given the geographical limitations of the Cape Peninsula, the historically popular suburbs retain their value. Properties in Clifton and Bantry Bay traditionally achieve the highest prices per square metre where supply is always going to be limited by constraints of new land.

The Cape Town luxury marketing is no longer confined to the Atlantic Seaboard but has expanded into the City Bowl’s Oranjezicht, Higgovale and Tamboerskloof suburbs which have had a 40% increase in sales for properties over R6 million. Constantiaberg and the Southern Suburbs followed the same trend as the Atlantic Seaboard and the City Bowl with an increase of 26% year-on-year.

“More and more people are choosing Cape Town properties for their permanent residences and holiday homes. Cape Town, as a location, has everything and more that is required of a holiday destination. In addition, Cape Town has a steady stream of international and local visitors who prefer to rent a holiday home rather than staying in hotels,” he says.

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