International buyers snatch prime Cape Town properties

International buyers are grabbing Cape Town property faster than you can say spring-high tide as 2023 sales exceed the value for 2021 and 2022, respectively.

Seeff Property Group attributes the upwards trend to economic and geopolitical challenges which have driven European buyers to the Cape – to take advantage of South Africa’s relatively weak currency.

“The fairly flat price growth at the top of the market combined with the weaker Rand has been a boon for buyers,” said Seeff Property Group’s licensee Ross Levin.

“At around R19 to the dollar, buyers are paying about 35% less compared to two years ago (when it was R14). A R30 million luxury Camps Bay villa which would have costed around $2.2 million two years ago, now only costs the buyer around $1.6 million,” he explained.

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High price tags

Camps Bay recorded the highest number of sales made to international buyers, with prices ranging from R25 million to R41.6 million. Buyers were from the UK, Netherlands, France and Germany.

Levin said while most international sales fell below R10 million, several high value sales had been made to buyers from Germany, UK and other European countries.

“There’s also been an increase in sales to Russian buyers and [those] from the USA,” he said.

According to Seeff Property Group, Cape Town’s property market is booming, with international buyers reported to have paid some steep purchase prices, ranging from R21 million to R150 million. Below are the top sales:

1. Clifton – R150 million (Russian)
2. Fresnaye – R71.25 million (Russian)
3. Clifton – R53 million (USA)
4. Clifton – R43 million (UK)
5. Camps Bay – R41.6 million (UK)
6. Bantry Bay – R28.5 million (UK)
7. Higgovale – R28 million (Zimbabwe)
8. Sea Point – R22.7 million (Zimbabwe)
9. Higgovale – R22.5 (Germany)
10. Sea Point – R21 (UK)

Seeff agent Nadine Jocum said Camps Bay had been a preferred property investment location for international and SA Expat buyers since the onset of the Covid-19 pandemic, and when the Russia-Ukraine war broke out.

Best-sellers

The Atlantic Seaboard and City Bowl had proven to be the most lucrative, accounting for 69% of sales concluded, according to Seeff licensee Ross Levin.

He said while property sales tended to slow down during winter periods, this was not the case for the Mother City’s two suburbs. The hot-off-the-list property destination had recorded R220 million in sales to international buyers in May and July, respectively.

He also said the highest sales value was R280 million – recorded in March.

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Only a flight away

Cape Town’s southern suburbs like Constantia and Bishopscourt have also gained popularity among buyers from the UK, Germany and other European countries, said Seeff lead agent Francois Venter.

“SA is only a short flight of about 12 hours [away], we’re in the same time zone and offer a fantastic lifestyle,” Venter said, explaining why Cape Town’s real estate had become a hit with European buyers.

“On top of that, where €1 million will only purchase a two-bedroomed flat in Germany, you can find a luxury R18 million home in beautiful Constantia of Bishopscourt,” he added.

Levin said properties below the R10 million mark had also become more affordable for buyers in SA, compared to what German and United Kingdom (UK) buyers would spend in their home countries.

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