Over the last year, residential property sales have gone from strength to strength in Cape Town and the surrounding areas, a trend that is expected to continue as we head into 2018, says Adrian Goslett, CEO of REMAX of Southern Africa.
“The Mother City has remained highly sought throughout 2017, which is evidenced by the significant increase in property sales we have seen in the last twelve months.
There has been a continued influx of people moving to the Western Cape from many of the inland regions throughout the country.
The demand has resulted in property price growth in the Western Cape outstripping other regions of the country – good news for homeowners, but bad news for first time buyers trying to get their foot in the door,” says Goslett.
Fuelled by real demand, Goslett predicts that Cape Town will continue to see positive house price growth in 2018.
“While the very steep upward curve we are currently seeing may flatten marginally, Cape Town will remain a lucrative investment destination from both a capital growth and rental income perspective as the current growth is not a bubble.”
While property sales in Cape Town increased, Johannesburg experienced a slowdown this year. “Although sales were up marginally in 2017 on the previous year, there was a decline in registrations due to issues such as the lack of available bank finance and lags at the deeds office.
Despite plenty of stock available on the market, there is also a disparity between what sellers in the current market want for their property and what buyers are to prepared to pay,” says Goslett.
Early indications are that Jeffreys Bay has experienced good property sales during the holiday season, with Marina Martinique in particular, experiencing strong growth.
A waterfront stand sold for just over R 1.6 million, while apartments on the water at the upmarket La Caribe development are edging towards the R 1 million mark.