Interest rate cut adds more positivity for Cape Town property
The Cape Town property market continues to defy national trends and remains the strongest as we head into the busier summer months. The Upper areas have remained active with good demand and stable prices as Lightstone recently also highlighted the resilience of the Cape property market.
Lifestyle and access to good amenities continues to be a big driver of the demand for property in our areas. Lightstone also reports that the Cape remains the preferred choice for those switching provinces, especially from Gauteng, but also from elsewhere, including international buyers. The Cape market also performs the best in terms of the sell-to-buy category with buyers investing more into property here compared to elsewhere.
Cape Town consequently achieves more sales in the higher price categories above R1.5m-R3m. The data shows that up to 70% of buyers who move to the Cape end up in higher-value properties. The market will be further buoyed by the improving economic indicators including the recent 25bps interest rate cut which we hope is the first of more to come.
In less than 100 days in office, the benefits of the GNU (Government of National Unity) are already filtering through. CPI inflation has declined to 4.4% which now sits below the Reserve Bank’s target range. The Rand has strengthened to under R17.20 to the US Dollar (late September), from a high of R19.2 in late April. The broader economic outlook is also much improved due to the stable electricity supply and a lower fuel price. It has also been reported that billions of Rand is flowing into SA shares and stocks and business confidence is edging up.
According to the Good Governance Africa (GGA), the Cape Town Metro ranks as the best run in the country out of 257 municipalities. We head into the latter part of the year with a stable national and local government while mayor, Geordin Hill-Lewis remains very visible as he forges ahead with revitalising the city’s infrastructure and services to cater for the growing population.
Aside from good basic services, Cape Town has some of the best schools, many of which are located around the Southern Suburbs in addition to access to UCT, ranked as the top university on the continent. Property analysts believe that the property market has now largely bottomed out which signals a good time for buyers who could reap long-term benefits if they buy at the right time in a stable area.
If you are thinking of selling, then now is a great time to talk to Seeff about what your property might sell for in the current market. A reminder that if you sell exclusively with Seeff right now, you could stand a chance to win R1 million in Seeff Cash Prize Competition as we celebrate 60-years of real estate success.
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