Cape Property Trends 2017

Cape Property Trends 2017
Sunday, May 21, 2017 Kate Culverwell

As 2017 inches towards mid-year, one thing is certain, the movement of people from the rest of the country to the Western Cape remains a firm trend and has a massive influence on the market.

As the residential population expands, especially in the Cape Town area, so does the demand for property stock. The demand for apartments close to the CBD is especially high, driving prices up. For many, the rising prices of accommodation in this locale are simply unaffordable, and the neighbouring suburb populations are steadily expanding as a result. This is a trend which is set to continue well into the foreseeable future.

The average house price in the Western Cape is R1,411 million compared to R1,042 million in Gauteng. Since the start of the post 2008/9 recession recovery, the average house price for the Western Cape has risen cumulatively by 76.6 %. In Cape Town and specifically the Atlantic Seaboard, a large percentage of properties purchased in the last year are buyers from Gauteng, with this being as much as 85% in Mouille Point. There has also been a noticeable trend in the increase of foreign property investment from African countries as opposed to European buyers. 

After a recent period of consistently high house price growth in the Western Cape, so the level of first time buyers has decreased, with properties becoming increasingly less affordable. This factor has started to put some brakes on demand growth.

According to Pam Golding Properties, the Western Cape market overall, remains very strong, with an average house price inflation of 9.69% for the full year of 2016.