19/02/2024
Cape Town is a stunning place and boasts some of the most picturesque suburbs in the world with homes enjoying breathtaking scenic backdrops of mountain and ocean vistas. It is also a thriving and prosperous metropolis.
This has made the city one of the most desirable places to live in South Africa. More recently, the trend of semigration has become a huge driver behind the surge of people looking to relocate to the Mother City as residents from other SA provinces snap up properties close to good schools, amenities and lifestyle offerings.
In the meantime, Henley & Partners in partnership with New World Wealth Global intelligence firm released the AFRICA WEALTH REPORT 2023. The report revealed that South Africa tops the list of the Top 10 wealthiest countries in Africa in terms of resident high-net-worth individuals by some margin.
According to Dogon Group Properties, it is not just South Africans looking to buy property in Cape Town. The property group, says they have seen rising interest from foreign buyers who are attracted to the wonderful lifestyle and beautiful properties, which present huge value for money when considering the exchange rates. According to Dogon, the appetite for luxury properties from the overseas market is vigorous at the moment as foreign buyers look for lifestyle and value for money on South African shores.
So where are the semigrants and foreign buyers spending their money? Dogon unpacks five of the most popular investment suburbs in Cape Town:
For many, seafront living represents the dream of owning the best of the best – a property that stands out from the rest and sets one apart through its prestige and the sense of arrival that comes with being able to live in a home on the water’s edge. “Coastal living is a huge drawcard for many people, and the suburbs of CLIFTON and BANTRY BAY – possibly the most exclusive and expensive residential suburbs in South Africa, known as the playground of the rich and famous, are seeing growing interest from wealthy buyers drawn to the prestigious nature of these suburbs, their beautiful white sandy beaches and gorgeous natural surrounding landscapes,” says Adrien Epstein, area expert and property agent for Dogon.
Clifton is home to the crème de la crème of property. The draw of living close to the sea is also being seen at the V&A Waterfront which is experiencing ongoing interest from buyers who are also attracted to the vibe of this cosmopolitan inner-city suburb that is truly the height of a luxury work, play, and live environment.
“Second only to Table Mountain, the Victoria and Alfred Waterfront is the biggest tourist attraction in Cape Town. With the harbour as their backyard and all the unique restaurants and stores at their disposal – residents of the V&A enjoy a world-class lifestyle,” says Natacha Neuburger, Dogon property expert for the V&A Waterfront area.
Here properties consist of exclusively lavish apartments and R24 million will secure property investors a luxury residence located on the Yacht Basin in the Waterfront Marina Residential Estate – one of the most prestigious addresses in Cape Town.
Sticking close to Cape Town’s CBD, another popular investment suburb is Higgovale, which is one of the smallest and most exclusive suburbs in Cape Town, nestled on the upper slopes of Table Mountain overlooking Cape Town’s City Bowl, with Lion’s Head looming to the North.
Keith Anderson, Dogon property agent for the Higgovale area, says that “well-protected from the south-easterly wind, Higgovale enjoys stunning panoramic views of Table Mountain and Table Bay and is within walking distance of the centre of Cape Town as well as the Table Mountain National Park. There are good schools, hospitals, top hotels, plenty of shopping opportunities, history, culture, nature and urban living all within easy reach – factors which combine to make it one of the most prime, up-market, and sought-after residential nodes.”
Moving away from the city and ATLANTIC SEABOARD, the Southern Suburbs offers many hugely popular nodes. Alexa Horne, MD of Dogon Group Properties, and an area expert and agent for the Southern Suburbs advises that her team has seen ongoing and growing demand for properties in Upper CONSTANTIA and BISHOPSCOURT as wealthy property buyers look to invest wisely.
“There are not many places in South Africa that match the location and lifestyle that Constantia offers. Many foreign buyers are looking to purchase homes here – drawn to the beautiful countryside, and vineyards, with its array of outdoor activities on offer, as well as access to great schools and shops.”
Bishopscourt is a small, affluent residential suburb that is enviably positioned, nestled against the slopes of Table Mountain and bordering the world-famous Kirstenbosch Gardens. This highly sought-after residential node is defined by luxurious, expansive homes – some of the most valuable and exclusive real estate in South Africa.
Affluent investors could consider a 6-bedroom home in Bishopscourt for R45 million.
New data from Statistics South Africa (StatsSA) shows that since 2010, property prices in the country have increased by 98%, with the City of Cape Town showing the most significant surge at 141%.
“Since August 2014, price increases in Cape Town have been consistently higher than in other metros. After remaining relatively flat in 2018 and 2019, prices surged further,” reported the statistics agency.
The latest reports compared eight metropolitan municipalities across nine provinces measuring changes in residential property prices through a new set of residential property price inflation (RPPI) metrics.
The RPPI measures the change in prices for houses, townhouses and flats that private individuals purchase.
“These are a few examples of some of the magnificent homes that are currently on the market in the most popular investment suburbs in Cape Town, and which are drawing interest from local and foreign buyers alike,” concludes Horne. “Luxury properties such as these, situated in the most affluent and prestigious neighbourhoods in South Africa’s most popular city represent the best-of-breed when it comes to non-commercial property investment. These homes are unique and occupy special locations – making them highly desirable, and one-of-a-kind – factors that contribute to great property investment return.”
According to New World Wealth’s latest figures, there are approximately 3,700 homes in South Africa that are valued at over USD 1 million (as at December 2022). By this measure, South Africa ranks as one of the 20 largest prime residential markets in the world, well ahead of the other countries in Africa and in line with big emerging markets such as India and Brazil.
Just over 40% of South Africa’s million-dollar homes are located in the ‘Prime 7’ suburbs of Cape Town, namely BANTRY BAY, BISHOPSCOURT, CAMPS BAY, CLIFTON, CONSTANTIA, FRESNAYE,
and LLANDUDNO.
South Africa’s most exclusive suburbs and streets are shown in the table below.
Although Cape Town suburbs dominate the list, it should be noted that square meter prices in certain parts of HERMANUS and PLETTENBERG BAY are beginning to catch up with those in the Mother City.
Source:
The semigration trend has become a huge driver behind the surge of people looking to relocate to the Mother City as residents from other SA provinces snap up properties close to good schools, amenities and lifestyle offerings.
