Western Cape and Gauteng in Fierce Competition for Affluent International Homebuyers

The South African real estate landscape has traditionally seen the Western Cape, and more specifically Cape Town, as the preferred destination for rich foreign homebuyers. However, recent trends indicate Gauteng, with Johannesburg at its core, is becoming increasingly attractive to this elite market segment, especially among South African expatriates looking to return and invest in their home country.

Gauteng's emerging lure seems to be a convergence of various factors. Rory O’Hagan, Chas Everitt International’s principle in the affluent Hyde Park and Sandton neighborhoods, highlights that numerous highly-skilled South African expats, after years overseas, are returning and investing in Johannesburg. Their return is driven by various reasons such as a longing for home, concerns about global instability, and the rising cost of living abroad. They're also drawn by the extraordinary value they can get for their stronger foreign currencies in the South African property market.

These expatriates are frequently taking advantage of the more accessible sub-luxury real estate sector in Gauteng's northern suburbs, with homes valued between R5 million and R10 million. At the same time, the luxury market, particularly properties above R20 million, remains robust in the Western Cape. According to the Seeff Property Group, while Johannesburg and Sandton have witnessed fewer high-end sales, several Gauteng buyers are instead investing in Cape Town’s luxury brackets, often in sought-after areas such as the Atlantic Seaboard including Camps Bay and Bantry Bay.

The Atlantic Seaboard, particularly Camps Bay, emerged as a hot spot with a reported 24 sales, with the highest house going for R41,7 million and the highest apartment at R32,5 million. International buyers, primarily from the UK and Germany, accounted for a significant portion of the transactions, emphasizing the enduring allure of Cape Town's scenic beauty and quality of life that continues to mesmerize affluent buyers worldwide.

Similarly, in Bantry Bay, 10 sales were recorded with international buyers from the UK and Russia making notable purchases. The Southern Suburbs, including Constantia and Bishopscourt, also reported impressive sales figures, further attesting to Cape Town's dominance in the upper echelons of South Africa's property market.

The upscale real estate market in Cape Town is further bolstered by the superb natural setting, a blend of mountain and sea that is enchanting to local and international buyers alike. Despite declining figures compared to the previous year, over R3 billion in sales over R20 million testifies to the city's robust appeal.

Meanwhile, Gauteng's real estate market, especially Johannesburg, offers unprecedented prospects for corporate job seekers and new business establishers. The temperate Highveld climate is also an attracting factor, drawing professionals who previously settled in Cape Town back to Gauteng's sunny winters and the thriving, cosmopolitan Johannesburg life.

Given these dynamics, South Africa's real estate market presents a tale of two contrasting yet prosperous worlds. For luxury and lifestyle, the Western Cape continues to charm the elite buyer. In contrast, Gauteng, with its significant returns on investment and growing economy, is capturing the hearts of skilled expatriates and corporates, as they recognize the compelling opportunities that Johannesburg's property market affords.