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January 2025 outpaced December in activity, with February showing equally promising sales.
Picture: iStock
Cape Town’s residential property market has experienced a surge in demand for high-end luxury properties, especially on the Atlantic Seaboard.
Basil Moraitis, Pam Golding Properties’ regional head in the Western Cape, said this sustained momentum has led to stock shortages, reinforcing the area’s reputation as one of the most desirable real estate destinations globally.
Busy trading period
He added that December 2024 saw a busy trading period that extended throughout the month, indicating the market’s strength.
However, January 2025 outpaced December in activity, with February showing equally promising sales.
“This rapid turnover of luxury properties has shifted the market dynamics in favour of sellers, particularly for well-located homes with spectacular views and proximity to key amenities such as the city centre, beaches, and the V&A Waterfront.”
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Luxury market sales
Moraitis added that the luxury market, particularly in the R20 million-plus category, is fuelled by local and upcountry buyers and international investors.
“A notable trend emerging is the return of South African expatriates who are disenchanted with life abroad and are seeking a high-quality lifestyle back in Cape Town.”
The Atlantic Seaboard continues to command top-tier prices. Among the standout transactions in January 2025 were:
- A Clifton home sold for R47 million to a local buyer.
- Another Clifton residence was purchased by a German buyer for R46.5 million.
- A Camps Bay villa was acquired by a UK buyer for R55 million.
He believes such transactions highlight the strong international confidence in Cape Town’s luxury property market, underscoring its global appeal.
High demand meets limited supply
He said another defining characteristic of the current market is the severe shortage of available stock.
“There is virtually no inventory available in the V&A Waterfront, which has resulted in a slowdown of sales in the area — not due to lack of interest but rather to the absence of properties for sale.
“In Mouille Point and De Waterkant, the median sales prices in the R5 million to R10 million segment have surged by 14.2% and 17.3%, respectively, over the past year.
“This price appreciation signals strong investor confidence and the willingness of affluent buyers to pay a premium for homes in these sought-after areas.”
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