CAPE TOWN TOPS PROPERTY MARKET IN SA

CAPE TOWN TOPS PROPERTY MARKET IN SA

The total value of sales in the South African housing market has been steadily increasing, with an 8.3% increase in the value of residential-property transactions from 2014 to last year.

This is despite gross domestic product (GDP) growth remaining very low, new vehicle sales plummeting, and an increasingly aggressive upward interest-rate cycle.

50% of residential properties are in the Western Cape and Gauteng, accounting for more than two-thirds of the total residential-market value. Sandton and Parkmore in Johannesburg, Green Point and Rondebosch in Cape Town and Rua Vista and Monument Park in Tshwane – as well as La Lucia and Mount Edgecombe in eThekwini in KwaZulu-Natal were amongst the high value suburbs with strong capital growth last year.

Although the money supply of asset-buying consumers is lessening, property investment remain a top priority for many South Africans, with Cape Town witnessing spirited growth in the housing market over the last five years.

More than 17.5% of the 6.2 million residential properties in SA are in the Western Cape, and sales account for 25.4% of the R4.3 trillion total value of the housing market. The City of Cape Town’s residential property market witnessed an increase of 12.3% in total value transacting from last year to this year; 45.8% of 700 000 properties are mortgaged, which in rand value is just over R450 billion of the council’s total housing market.

Although housing markets in Johannesburg remain stable, Cape Town is showing much stronger growth than all other metros. This is supported partly by Gauteng homeowners increasingly choosing the Western Cape when buying outside their province, with the intention to eventually relocate.