Residential property values soar
Category Newsletter: Article
Cape Town: The helm of growth
Values of residential properties appreciated since last year and at the helm of this growth is the Western Cape. Cape Town has witnessed homes rising in value by 12.3%. According to Paul-Roux de Kock, analytics director for Lightstone- the City has experienced a boom in the housing market over the last five years. The main growth areas include Green Point and Rondebush and this is despite GDP growth remaining low, hiking interest rates and new vehicle sales plummeting.
Cape Town is home to over 6.2 million properties, this makes up 17.5% of the South African property market. The national market is currently worth R4.3 trillion and of that the City accounts for approximately 25.4% of the total.
This indicates that Cape Town’s property market is increasing greatly both in value and quantity.
Strongest Metro
Examining the city on a ten year timeline indicates that Cape Town is showing much stronger growth than the rest of the metros.
In 2004, in the larger suburbs of Paarl, 900 properties were sold- averaging R750 000. A decade later 706 of these properties sold at an estimated R1.85 million.
Current housing market trends in the City
For luxury-market buyers, estate living is becoming a preference owing to security, low-maintenance costs and lifestyle convenience. Market forces also do not grossly affect estate living because in general it doesn’t dip too low or peak as high as the rest of the luxury market. In addition, Cape Town is expected to receive construction worth almost R8 billion due to take place over the next five years, in both residential and commercial properties.
Coastal Property Sales and Letting specialises in the Western Cape market and offers properties for sale in the burgeoning Mother City and surrounding suburbs. Contact one of our Property Agents today if you are thinking of selling your home and would like a free valuation.
Author: Coastal Property Group
