Cape Town Real Estate Boom: High Demand and Record Sales in Atlantic Seaboard and City Bowl

Cape Town's Atlantic Seaboard and City Bowl have become a hotspot for property investors, with nearly 900 properties sold this year, amounting to over R5.5 billion in sales. A significant influx of buyers from Gauteng, KwaZulu-Natal, and various parts of Europe reflects a burgeoning demand for high-end real estate in the region.

Ross Levin, the Licensee for Seeff Atlantic Seaboard and City Bowl, conveyed that six of the top property sales in Cape Town were finalized by Gauteng buyers, with prices ranging from R26 million to a stately R66 million for prime Atlantic Seaboard locations. Similarly, KwaZulu-Natal buyers have shown interest, with purchases between R28m and R37.5m in Clifton, and additional robust figures in Fresnaye.

The international market is also dynamic, particularly with European buyers who have been acquiring second homes in Cape Town. Germans have been noted to spend up to R30m in Camps Bay, with Dutch and UK buyers closing deals up to R68.25m and R59.95m, respectively.

Seeff's insider, Levin, identifies a trend towards a seller's market, emphasizing that properties may very well be undervalued by their owners considering the climbing demand and dwindling stock across price bands. Cape Town's luxury market outpaces that of Johannesburg, indicating investor confidence in the Western Cape's future.

With a significant focus on sectional titles, apartments constitute roughly 80% of the sales in the Atlantic Seaboard, while freehold houses represented about 43% of the sales value, despite only making up 20% of the transactions. Meanwhile, the City Bowl and CBD maintain a more accessible market with the majority of sales falling under R3 million.

Clifton, known for its opulent beachfront properties, boasts an average freehold house price of R43.9 million, surpassed only by upper-echelon sales this year reaching R66 million. Following Clifton, Camps Bay, Bantry Bay, Fresnaye, and the V&A Waterfront command competitive prices, with the City Bowl providing diverse investment opportunities due to its relatively lower property values.

High-end luxury homes have found their place in the vistas of Tamboerskloof and Higgovale, with transactions reaching R32.5 million. Levin sees this enduring demand as a beacon of market confidence, offering an opportune moment for sellers in Cape Town's prevalent property landscape.