Cape Town leads with 9 out of 10 of SA’s most expensive suburbs

An analysis of the average selling prices this year across the country by the Seeff Property Group reveals that nine of the most expensive suburbs are in Cape Town. Only Sandhurst from the Sandton/Joburg area makes it into the top ten.

These top ten suburbs now all command an average price of well above R10 million and in the top suburbs the average is now just about R20 million (Clifton and Bantry Bay).

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Notably, where there were three Sandton/Joburg suburbs in the top ten list five years ago, this year, there is only Sandhurst, although it boasts a notably uptick in the median price.

Notable too, is that Higgovale in the Cape Town City Bowl is now also in the top ten list. It once again stands as testimony to the allure of Cape Town, but more than that, the absolute confidence in the Cape Town property market, says Samuel Seeff, chairman of the group.

Cape Town is not just the best city in the world as voted for the eighth year running by the Telegraph Travel Awards this year, but the best place to invest your property money according to Seeff. Wealthy Joburg buyers along with international buyers are all investing in Cape Town, and their confidence has been rewarded, says Seeff.

Despite a challenging year, Cape Town is set to end on another exceptional year for the property market with an average transaction price of R2.1 million according to Lightstone data.

Comparatively, Johannesburg only reached around R1.6m, Pretoria around R1.5m and Durban R1.3m. Sandton averaged around Sandton R2.3 million compared to the Atlantic Seaboard which stands on around R8.2 million based on Propstats sales data.

The average transaction price for Cape Town doubled over the last ten years and is up by about 35% from the 2019 pre-pandemic year. Cape Town also once again achieved the highest average prices in the country this year.

Ross Levin, licensee for Seeff Atlantic Seaboard says it is no surprise that 7 of the top 10 suburbs are located in the premier Atlantic Seaboard and City Bowl belt where buyers have spent on average more over the last three years.

He says further that despite the market challenges, the market here has traded slightly up on the 2022- year, which was already a very successful year. The market has been made up of a greater quantity of deals, albeit at lower price bands. That said, the market at the upper end still traded up compared to the 2019 pre-pandemic period.

SA’s Top Ten Super Luxury Suburbs by Average Selling Price in 2023

Source: Seeff, based on Lightstone/Propstats data

The Southern Suburbs areas have also achieved an excellent year under the circumstances with close to R5.5 billion in sales this year. Hout Bay has also enjoyed another exceptional year with sales of over R1 billion and the great Blouberg over R2 billion.

Luxury buyers continued to flock to Constantia Upper and Bishopscourt, says Francois Venter, lead agent for Seeff Constantia. There have already been 10 high value sales above R20 million in Constantia and 8 in Bishopscourt, in both instances, the highest on record. Luxury rentals have achieved rates of up to R120,000 per month in Constantia according to Jacqui Bush and Sonya Garisch from Seeff.

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According to the CCID State of Cape Town report released earlier this year, there has been an increase in new businesses opening and the city awaits the opening of Amazon in the new year. Development is ongoing and everywhere you look, the city is at work getting things done.

Several pillars support the Cape Town property market, says Seeff. Aside from own-use residential sales, it has a buoyant rental market for both residential and short-term rentals which makes Airbnb investments a lucrative option, especially with tourism growing. On top of that, the market is further boosted by an influx of semigration and international buyers and tenants.

Seeff says buyers across the price spectrum continue seeing Cape Town as a safe store of wealth. We have seen that wealthy buyers from upcountry as well as international buyers are prepared to put significant funds into the property market. In fact many Europeans have preferred to invest here over the last two years as they are not as bothered about local challenges as we are.

Buying or Renting - What your money can get In Cape Town's most popular suburbs

The semigration surge continues, and if you are amongst those who are thinking of joining the 4.89 million people who live in Cape Town, the good news is that there are many great neighbourhoods to choose from.

But where to put down roots in this beautiful city?

Likewise, for those who already call the city home, but may be considering a suburb change - whether to accommodate a growing family, climbing on the property ladder for the first time, downsizing, or moving closer to work, there are a range of reasons to move, and knowing where best to buy to suite your needs – and budget - is key.

Alexa Horne, MD of Dogon Group Properties provides some insights and comparisons into what your money can buy you in some of  Cape Town’smost popular suburbs.

“The Southern Suburbs have become increasingly popular over the last few years for families. The area offers beautiful, safe surroundings and large well-built homes.  In addition to this there are plenty of good schools nearby as well as access to a myriad of leisure activities and facilities – all within a stone’s throw.”

Examples of family homes currently on the market in the Southern Suburbs include: a 3-bedroom Victorian cottage in the historic Chelsea Village in Wynberg Upper which is on the market for R4,95 million. “This is a unique home with its pink exterior and “filigree stoep”, original wooden floors, shutters and sash windows, authentic fireplace, glass-stained doors, antique light fittings, original copper sink and taps, and black and white checkered tiled flooring.”

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Sticking with heritage homes, in the suburb of Claremont R7,95 million will buy you a large charming 4-bedroom Victorian house which boasts four fireplaces, high ceilings, beautiful woodwork, and large windows that flood the space with natural light. “Outside there is a pool, landscaped garden, and a student flatlet that can also be used as an incoming generating source,” says Horne, who also highlights another property with stunning gardens – a gorgeous 4-bedroom home in Ravensburg Avenue in Newlands that is nestled in a natural organic garden that offers a sanctuary away from the hustle and bustle – on the market for R6,9 million.

Staying in the Southern Suburbs, but more fitting for a young professional looking to get onto the property ladder, or perhaps for those looking to downsize, is a modern 2-bedroom apartment for sale in the heart of Rondebosch for R2.999 million, which is fully furnished and features granite kitchen counter tops, remodelled bathrooms, custom flooring and American shutters fitted throughout the unit, to name a few.

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“However, not everyone is looking to buy,” says Odette Maartens, head of rentals for Dogon. “For those keen to rent in the Southern Suburbs some examples of current rentals include a spacious 2-bedroom luxury apartment in Kenilworth for R24 000 per month; a lavish 6-bedroom house to rent in Kenilworth Upper for R100 000 per month; and a modern 3-bedroom apartment in Bishopscourt for R50 000.”

Another hugely popular area to live in within Cape Town is the Atlantic Seaboard, which enjoys a prime coastal location, easy access to the CBD, Table Mountain, some of the best beaches in the world, the V&A Waterfront – the list goes on!“

An example of what your money can buy, for those in the market for a family home in this area, includes a 2-bedroom cottage in the heart of Sea Point for R3,85 million. This quaint home has loads of potential and room for expansion, with three dedicated off-street parking bays - a huge bonus and a possible income-producing asset,” advises Horne.

“For those who prefer more modern houses, R5,95 million will buy you a contemporary 3-bedroom home in vibrant Oranjezicht, close to trendy restaurants, vibrant cafes, and peaceful parks. For R7,85 million, families can purchase a modern renovated 3-bedroom home in the highly desirable area of Fresnaye, with views of Lions Head, a beautiful garden and a tandem garage with a loft.”

Staying in the Atlantic Seaboard but moving away from freestanding family homes, some examples of property for sale in the area include a 1-bedroom apartment in desirable Tamboerskloof with lovely mountain views from the balcony for R2,445 million; or a 1-bedroom luxury apartment in Sea Point, in the brand new Suro Sea Point aparthotel building, for R3,295 million. R4,575 million will buy a 2-bedroom apartment within this same building. A new townhouse development called Longmarket Mews in the charming Bo-Kaap, nestled up against Signal Hill, offers 2-bedroom units starting from R3,3 million.

Maartens offers some insights into rentals within the Atlantic Seaboard: “For R12 000 per month one can rent a studio apartment in Tamboerskloof. A large furnished 2-bedroom apartment in Green Point is currently available to rent for R45 000 per month, whilst a 2-bedroom apartment in Vredehoek is available for R20 000 per month, and for families who need the space, a 3-bedroom home in Tamboerskloof is available to rent for R95 000 per month.”

“These are just a few examples of current prices being asked for homes and apartments within two of Cape Town's most desirable areas. Those who purchase well-considered property within the Southern Suburbs or the Atlantic Seaboard cannot go wrong, not only will you enjoy prime locations in one of the most beautiful cities in the world, but you will also enjoy a return on your initial investment when the time comes to sell,” says Horne.

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