What to expect from Cape property this year?
Category News
Voted "Best City in the World" by Time Out, and Cape Town Tourism announcing record international tourist arrivals in December, the Cape Town property market enters 2025 on a strong foundation. This follows achieving "Best City in the World for Food" (Condé Nast Traveller Readers' Choice Awards) towards the end of last year.
The Mayor's office also continues putting out fantastic news about infrastructure upgrades. Interestingly, many visitors over the festive season took to social media to highlight the contrast in service delivery between Cape Town and other metros.
Another 25bps interest rate cut taking effect at the end of January, is also just what the market needed. This is the third successive rate cut since the latter part of last year, and certainly another positive boost for the Cape property market which ended on the highest overall property value growth for 2024.
Lightstone data shows that overall sales volumes across the Cape Town metro increased marginally in 2024 compared 2023 overall, with some areas such as Hout Bay enjoying better year-on-year growth for various reasons, including the interest rate cuts. Price growth across the Cape was also considerably better compared to other metros with the average price growth around 7% year-on-year price growth (according to StatsSA), depending on the area.
The Reserve Bank is expected to provide further interest rate cuts this year which will be an added boost for the property market. Provided there are no economic shocks the economy is also expected to improve compared to last year which will further support the positive market outlook.
From a local perspective, the Hout Bay/Llandudno property market enjoyed a particularly good year with overall sales volumes and the average selling price up compared to the previous year. The market enjoyed good support from local, semigration and international buyers. Sellers achieved excellent prices, with Propstats data showing the average difference between the asking and selling prices at around 5% for the year. A good portion of sales were in fact concluded for even closer to, and full asking price in many instances.
Good service delivery and infrastructure with access to great amenities, schools, proximity to the Atlantic Seaboard, Waterfront, and Southern Suburbs combine with a great beach lifestyle to underscore the strong property fundamentals in our area. Buyers enjoy the confidence of knowing they are investing in an area which has delivered good annual value growth.
The good activity in the market has seen it shift in favour of sellers, with stock largely depleted. We now have a shortage of stock with sellers able to achieve good prices.
It is a great time to sell, and what's more, selling exclusively with Seeff before the end of April could also win you a R1 million cash prize.
Don't delay, contact Seeff Hout Bay/Llandudno today for a free market related value assessment of your property, or to discuss your needs.
Yours in Property
Author: Seeff Hout Bay / Llandudno
