Top searched suburbs on RE/MAX

While market conditions are slow in provinces such as Gauteng, the Western Cape is experiencing somewhat of a boom.

According to the RE/MAX National Housing Report for Q2 2024, the Western Cape claimed all five spots for the top searched suburbs on RE/MAX. House prices in this province are also significantly higher than the rest of the country. While the RE/MAX SA average house price in Gauteng is R1.4m, the Western Cape is at R2.6m in Q2 2024.

Despite the high interest rates and slow economic growth that has been hampering the property market in other parts of the country, demand for homes in the Western Cape remains high, which is what continues to drive prices up. Operating in two of the top five searched suburbs on RE/MAX, Louise Killeen of RE/MAX Living says that high interest rates have not really affected the demand for homes in Gardens and Tamboerskloof (both of which are serviced by RE/MAX Living in the Cape Town City Bowl).

“There is always more demand in these areas than there is supply,” says Killeen. She adds that house price appreciation has been strong in these areas. “Listings in these areas can range from around R5.5 to as high as R24m. It feels like we are turning into a sellers’ market now too, which will force prices up further.”

Homes are also selling fast in these suburbs. Killeen says that correctly priced homes, on average, last about 42 days on market in the past year. “However, incorrectly priced homes take much longer. For example, there was one property that took up to a year to sell – and the price reduction was 25%. So, it is important to correctly price the home,” she notes.

There are similar occurrences in Claremont, which is another of the top five searched suburbs for Q2. Kevin Jacobs, Broker/Owner of RE/MAX Premier, says that “demand in Claremont is still high due to a shortage of correctly priced stock. The average price in Claremont is at around R3m with the market being split 50/50 between sectional title and freehold properties. The average sales price has increased quite nicely over the past 12 months – currently sitting at about 7%. Correctly priced properties are selling withing 5-8 weeks,” says Jacobs.

Despite strong demand, Jacobs says that many properties are not selling due to pricing issues. “Buyers are highly sensitive to price and are often inclined to wait rather than make an offer on properties that are perceived as overpriced,” says Jacobs.

Speaking into the buyer profile in the area, Jacobs explains that while the majority of buyers remain local, there is still strong demand from out-of-town buyers, including those from upcountry and KwaZulu-Natal.

“On the upper-end of the market, demand from foreign buyers and those relocating within the country (semigration) remains high. Conversely, the demand for sectional title properties is largely driven by factors such as schooling, tertiary education, and first-time home buyers,” says Jacobs.

There has also been a large percentage of foreign buyers in Gardens and Tamboerskloof. “According to PropStats, 17% of buyers in this area since January have been foreigners. 57% of the sales since January have been cash sales. Within this thriving market, RE/MAX Living continues to hold an exceptional market share of 30% in both areas,” says Susan Watts, Broker/Owner RE/MAX Living.

Owing to the popularity of these markets, Jacobs has noticed a surge in new real estate agents and agencies entering the market. “These newcomers often face significant challenges in establishing themselves and as a result, many resort to offering discounted commission rates to attract clients. Despite the increased number of these discount-focused agencies, established brands with a reputation for professionalism and proven results continue to hold the majority of the market share. It’s important to recognise that while discounted services can be appealing to some, reputable agencies that offer effective, reliable service consistently achieve the best outcomes for their clients,” Jacobs concludes.

Writer: Kayla Ferguson