Investing in Cape Town property - a market that has withstood the test of time
Category Market Update
Cape Town has become the country and arguably the continent's top tourist town and is now recognised as one of the best cities in the world to work, live and play in.
In fact, as part of its tourism recovery plan, the City of Cape Town hopes to persuade National Government to introduce a Digital Nomad Visa so that more people can visit the country for extended periods of time.
Being a strong tourist town is just one of the pillars which has made Cape Town the top property market in the country with capital growth and prices which outpace even those of the Johannesburg/Sandton area which is still the wealth capital of the continent.
Naturally, as with the economy, property markets have ups and downs. Cycles are the nature of real estate, economies and investments. The drastic market decline resulting from the 2008 Global Financial Crisis resulted in Cape Town being one of the worst hit markets due to the combination of residential and tourism decline.
The economic upswing which followed propelled Cape Town property demand and values to rise dramatically well above anywhere else, especially in high-demand neighbourhoods such as the Southern Surburbs and Constantiaberg area.
Cape Town has also become the top city for semigration buyers given its status as the best run metro in the country combined with a desirable lifestyle and attractions.
The Cape Town property market has lost none of its lustre and remains a desired location, whether you are selling or buying as we have seen over the past year. Aside from local buyers and investors looking to capitalise on the five-decade low interest rate, there is renewed demand from semigration buyers.
The outlook going forward also seems a bit more upbeat with global and local economists expecting a faster economic bounce back compared to the 2008 downturn given that the market is not bogged down by the level of over-lending and distressed sales which characterised the last downturn.
There are many facets to the Cape Town property market. Aside from the lifestyle, it is home to a number of top universities including the University of Cape Town (UCT) and many of the best and top performing schools as was once again illustrated by this year's matric results.
The tourists will return, and the economy will improve. It is just a matter of time. Investing in Cape Town means you are investing in one of the best cities on the continent. Buyers understand this; hence we are seeing excellent demand which in turn creates great opportunities for sellers.
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Author: Gina Meintjes
