Good governance, semigration and tourism - pillars which keep Cape property market resilient
Category Lifestyle
The outcome of the Local Government Elections with the DA retaining the Cape metro is excellent news for the property market. With the borders open, international bookings have picked up dramatically and Cape Town is expected to be packed again this summer with local and international visitors which is a vital boost for the economy as much as the property market.
As we have seen over the last few years, good governance, semigration and tourism are key pillars which have propelled the metro to the strongest property market in the country. Despite the pressure on the market as a result of the pandemic lockdowns, it has remained resilient against the odds.
The local market has not just bounced back after the devastating Covid-19 lockdowns, but it has been a fantastic year and we may well end the year on R1 billion in total sales. That is not just double compared to last year, but a remarkable bounce-back to pre-pandemic levels.
We are positive about the market. Cape property is seen as a strong store of wealth. This was demonstrated after the last government elections when we witnessed a notable uptick in sales and property values across the metro, boosted by an influx of semigration and investment in second homes as people looked to capitalise on the fabulous location and excellent service delivery.
Under the new mayor, the Cape metro is looking to reinvigorate service delivery and focus on security and stable electricity which support a strong property market. Cape Town is by far the most popular area that people want to move to with the highest volume of inward semigration, including from high-end areas such as Sandton and Pretoria East, inland provinces and the KZN coastal regions.
The Cape metro attracts the highest volume of foreign buyers, predominantly from the UK, Germany and elsewhere in Europe who often spend extended periods in the city. After a brief slump, there has been a notable uptick in demand and sales to foreign buyers. Many are citing the desire to escape the pandemic as reasons for investing in homes-away-from-home around the city.
The Covid-pandemic has been a major boost for the Cape lifestyle. Our beautiful neighbourhood is not just a great place to live and raise children in, but offers one of the best holiday and semigration locations, and is now also top ranked for remote working.
What's not to love? Our area offers so much more compared to other areas. Aside from the ocean and beaches, you are surrounded by mountains and nature. We have one of the most beautiful coastal drives, plenty of outdoor activities and quick access to the Southern Suburbs and Atlantic Seaboard, and many attractions of the Cape.
We head towards 2022 with strong local market fundamentals. The recent interest rate hike, while disappointing, will have a minimal impact on the market as the rate remains well below what it was before the onset of the pandemic. The interest rate and mortgage loan conditions, which remain favourable, should continue to support strong demand in the market.
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Author: Gina Meintjes
