What to expect from Cape property this year?
Category Market Update
Voted "Best City in the World" by Time Out, and Cape Town Tourism announcing record international tourist arrivals in December, the Cape Town property market enters 2025 on a strong foundation. This follows achieving "Best City in the World for Food" (Condé Nast Traveller Readers' Choice Awards) towards the end of last year.
The Mayor's office also continues putting out fantastic news about infrastructure upgrades. Interestingly, many visitors over the festive season took to social media to highlight the contrast in service delivery between Cape Town and other metros.
Another 25bps interest rate cut taking effect at the end of January, is also just what the market needed. This is the third successive rate cut since the latter part of year, and certainly another positive boost for the Cape property market which ended on the highest overall property value growth for 2024.
Lightstone data shows that overall sales volumes across the Cape Town metro increased marginally in 2024 compared 2023, potentially due to the interest rate cuts late last year. Price growth across the Cape was also considerably better compared to other metros with the average price growth around 7% year-on-year price growth (according to StatsSA), depending on the area.
On the whole, it was a good year for property sellers across most of the Southern Suburbs/Constantiaberg region, and the outlook is positive for this year. The Reserve Bank is expected to provide further interest rate cuts which will further boost the property market. Provided there are no economic shocks the economy is also expected to improve compared to last year which will further support a positive property market.
Good service delivery and infrastructure including amenities and top schools combined with a fabulous lifestyle to underscore the strong property fundamentals and strength of the market. Aside from local buyers, the market is further supported by the continued semigration demand as well as international and investment buyers in many areas. Buyers enjoy the confidence of knowing they are investing in an area which has delivered good annual value growth.
Given the positive market outlook and depletion of stock levels, 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.
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Author: Gina Meintjes
