Latest rate cut another positive boost for Cape Town property
Category Market Update
The latest interest rate cut, the third successive since September last year, is yet another positive boost for the booming Cape Town property market. We head into the year on a solid foundation following the good performance last year with the Cape ending on the highest property value growth, although this differs, depending on the area.
We kicked the year off with Cape Town named the "Best City in the World" (out of 50 cities) by Time Out, following on from being named the "Best City in the World for Food" in the Condé Nast Traveller Readers' Choice Awards towards the end of last year.
It was also a bumper tourist season over December, according to Cape Town Tourism which announced record international tourist arrivals. A few famous visitors included US rapper, Rick Ross who praised and promoted the scenery, food, attractions and good infrastructure widely on social media, encouraging others to visit.
This is great news considering the importance of tourism for the economy and property market, including those with Airbnb investments. Cape Town's annual events' calendar is also in full swing bringing more visitors to the city which will be a further boost for Airbnb investments or businesses which rely on tourism.
The Mayor's office also continues putting out fantastic news about infrastructure upgrades. Many visitors over the festive season also took to social media to highlight the contrast in service delivery between Cape Town and other metros.
Aside from the continued influx of semigration buyers, international buyers have also invested in more properties over the festive season, from countries such as Germany, UK, France, Netherlands, Switzerland, Canada, and many African buyers.
Lightstone data shows that overall sales volumes across the Cape Town metro increased slightly in 2024 compared 2023, potentially due to the interest rate cuts late last year. Looking at the local areas around Marina da Gama and Muizenberg in particular, data shows that it was another good year for local property sellers.
Good service delivery, a fabulous lifestyle, and strong property fundamentals underscore the strength of the market as you are investing in an area which has delivered good annual value growth. Average price growth for the Cape Town Metro averaged around 7%-10%, depending on the area, significantly higher compared to elsewhere.
Given the positive market outlook, Seeff urgently needs stock to meet buyer demand. It is an opportune time to sell, and selling exclusively with Seeff before the end of April could also win you a R1 million cash prize.
Seeff is the key to your property success. We open literally thousands of doors to new property aspirations every year. Contact us for a free evaluation of your property, or to discuss your needs.
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Author: Gina Meintjes
