[imagesource:befunky]

Cape Town’s Southern Suburbs seems to be immune to the recent slowdown in the property market, and according to the data, the leafy side of Table Mountain is now one of South Africa’s strongest real-estate markets, witnessing ‘exponential increases’ in house prices over the past few years.

The need for safety and estate living has stayed strong, especially among people moving from other parts of the country. Places like Newlands, Rondebosch, and Constantia have become particularly popular.

The recent census also shed some light on why Cape Town remains a go-to for anyone moving from anywhere in the country. According to the census data, 1.6 million people have left the Eastern Cape to move to Cae Town in the last decade. Or as the HeraldLive calls it: An exodus from the Eastern Cape.

From January to September of 2022, three sales exceeded R35 million in the Southern Suburbs. During the course of this year however, there have been five such sales already – and its not even bonus time yet. A lot of this investment into property is by international buyers though, like those from the UAE, UK and Europe.

But it’s not just the foreigners that are fleeing to the Cape. Semigration from other parts of the country has also led to a huge shortage of rental homes in and around Cape Town, and with its location, access to schools, and just general nice-ness, the Southern Suburbs are becoming a flame for fleeing moths.

According to Alexa Horne from Dogon Property Group, “Rising interest rates, economic instability, and an unusually cold winter in Cape Town have collectively dampened sales activity. However, the luxury property market in the Southern Suburbs, and in general, remains largely unaffected by interest-rate hikes and rising living costs.”

“Ultra-wealthy buyers (those seeking properties exceeding R20m and even R30m) continue to show confidence in the market, and property remains one of the best long-term investments – with an increasing number of individuals turning to it as a means of safeguarding their wealth against currency depreciation and market volatility.”

Despite the country buckling under interest rates and a lack of eggs, there are still folks out there with serious enough dosh to buy a piece of the Cape Town vibe – as can be seen by the reported massive interest in a five-bedroom Constantia Upper for R26.5 million, or the seven-bedroom which is on the market for R70 million in Exeter Avenue in Bishopscourt.

So if you’re thinking of selling your granny’s home in Rondebosch – don’t. Sit on that goldmine for a little while longer. As with the price of milk, the cost of owning a home in the Southern Suburbs is never going to go down, and that 2 bedroom house your nanna left you might just become your retirement fund in the next decade or two. Likely less.

And if you’re curious as to what R45 million can get you in Bishopscourt, feast your apartment-dwelling eyes on the below video.

[source:bizzcomunity]