Semigration and tourism an enormous boost for Cape property
Category Market Update
Trends such as semigration and tourism have been a significant boost to the Cape property market, not just the coastal areas, but also inland neighbourhoods such as Constantia and surrounds and out to the Winelands towns.
The increase in demand from semigration and international buyers is estimated to have boosted the market by up to 20%. While this slowed during the Covid Lockdowns, the opening of local and international borders have brought a renewed influx of buyers over the last 18-months.
The pandemic has in fact been a tremendous boost for local semigration and international buyers to flock to the Cape. Propstats data shows there has been a notable increase in international buyers over the last 18-months and the trend continues.
In the Constantia area, we have seen quite a few upcountry and international buyers. These are not necessarily looking at the high-end of the market, but are specifically drawn to our areas as they value the space and green of Constantia.
The impact has not only propelled the Cape property market to the best performing area post-Covid despite signs of a slow-down due to the deteriorating economic outlook. A recent Lightstone study shows that the Cape still enjoys the highest influx of buyers moving from elsewhere, especially Gauteng and more recently KZN as well.
Lightstone also reported that coastal property consequently enjoyed better average price growth compared to the rest of the country over the last year. Propstats data also shows that while prices have remained fairly static above the R3 million price band, sellers have been achieving closer to their asking prices.
Seeff expects that the Cape property market may hold up better compared to the rest of the country which could be more affected by the economic challenges.
Heading towards summer, we are delighted that life is returning to normal. The restaurants and beaches are packed, and outdoor events can be attended again. With the international borders open, people can travel again, and we look forward to welcoming even more international guests and buyers over the summer.
The greater Cape Town Metro continues to grow in stature locally and globally. The latest include the UK's Telegraph Newspaper naming it one of the best cities to visit. British Airways are increasing its weekly flights into Cape Town over the summer (despite the UK cutting its air traffic) and Delta and United Airlines will also be offering direct flights to the City from the USA.
The strength of the Cape Town property market, especially the high-demand areas such as Constantia and surrounds have become a benchmark in the country. It is frequently highlighted and commented on and has added to the desirability of living and owning property in the City.
If you are still thinking about whether to invest or make the move, you should not wait too long because the longer you wait, the more you are likely to pay.
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Author: Gina Meintjes
