Gautengers and international buyers spent more on luxury homes in Cape Town this year

The luxury property market above R20 million enjoyed another good year, although mostly in Cape Town with Gauteng buyers spending more on super luxury property this year, according to the Seeff Property Group.

While only about a handful of sales were concluded at the upper end of the market in the Johannesburg/Sandton luxury areas, Gauteng buyers purchased several high end properties priced above R20 million this year.

Luxury properties purchased by Gauteng buyers on the Atlantic Seaboard were mostly at the Waterfront (R43M for an apartment), and in Bantry Bay (R43M for apartment and R24M and R20M for house), and  Camps Bay (houses at R40M, R31.5M and R27.5M).

Camps Bay has been incredibly popular with upcountry and international buyers with the highest volume of super luxury sales by far concluded in Camps Bay. Clifton achieved the highest prices with an average freehold selling price of R50 million, and three sales above R50 million ranging to R150 million.

Overall, there were at least 100 sales over R20 million concluded across the Cape Town metro this year with a total value of over R3 billion. Although slightly down compared to last year, it is still more than double what was sold in the 2019 pre-pandemic year. Sales to international buyers across the Cape Town metro top the R3.3 billion mark.

60% of all high value sales above R20 million were concluded on the Atlantic Seaboard. Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl says that both villas and apartments were in high demand among wealthy buyers this year. R20 million-plus prices were also paid for apartments in Sea Point and Mouille Point.

Bishopscourt and Constantia in the Southern Suburbs also enjoyed a record number of R20 million-plus sales according to Francois Venter, lead agent for luxury sales in the Seeff Southern Suburbs and Constantia areas. There has also been the odd house sold above R20 million in Claremont and Newlands in the Southern Suburbs this year.

Top 10 Suburbs for Super Luxury Sales above R20M in 2023

Source: Seeff (based on Propstats data)

Semigration and international buyers looking for a second home in the city has added to the excellent sales this year, says Levin. International buyers are not too concerned about the economy or politics as they buy here for the fabulous lifestyle and excellent value, he adds.

About 30% of the high end sales were to international buyers. The highest number of international sales were in Camps Bay, especially from the UK and Germany according to Nadine Jocum, a Seeff agent in Camps Bay.

She says international buyers love the natural beauty of the mountain and sea and close proximity to the other beautiful suburbs of Cape Town, the Waterfront and CBD and the wine farms. UK and German buyers were predominantly purchasing above R20 million in Camps Bay this year.

There were also more sales to buyers from the USA this year (mostly in Clifton and Llandudno), and Russian buyers in Clifton, Bantry Bay and Fresnaye. These suburbs all boast among the most beautiful settings in the world as they hug the Atlantic coastline, says Levin.

The economic challenges notwithstanding, estate agents are expecting a busy summer, especially as upcountry and international buyers flock to Cape Town. Levin says they expect the trend to remain positive. Many international buyers tend to purchase in the first few months of the year and Cape Town expects a bumper tourist season. The weaker Rand compared to the dollar, pound and Euro should continue to be a strong incentive for international buyers.

Notes – statistics from Propstats and Lightstone