The cost of popular Cape Town apartment blocks
A major property group has reported a surge in demand for apartments in Cape Town, leading to big increases in rental and purchase prices.
As people prioritise lifestyle, seeking more leisure and less maintenance, the demand for apartments is soaring.
Key drivers of this demand include urbanisation, traffic congestion and proximity to workplaces, says agents from the Seeff Property Group.
While more than 50% of all property sales in South Africa are still for freehold property, around 24% of property stock in Cape Town are sectional title units.
Many of these units are apartments, with some fetching a rental of R70 000 per month, writes BizCommunity. The sales market meanwhile showed over R6.1bn in apartment sales in Cape Town over the past year.
According to Seeff, some of the highest prices paid for apartments in Cape Town in 2023 were in the Atlantic Seaboard and City Bowl.
COST PER SQUARE METRE ON THE ATLANTIC SEABOARD
On Cape Town’s popular Atlantic Seaboard (areas like Sea Point, Clifton and Camps Bay) only 20% of apartments were priced below R2 million. A third of sales were priced above R5 million.
Square meterage at apartments at some sought-after blocks reached the following:
San Michele, Clifton – R187 970/sqm
Helenslee, Waterfront – R163 636/sqm
La Corniche, Clifton – R 160 714/sqm
COST PER SQUARE METRE IN THE CITY BOWL
The Cape Town City Bowl/CBD also had a booming year, with apartment sales exceeding R1.2 billion.
A significant portion, 46%, sold for under R2 million, while 30 units fetched over R5 million, and some surpassed R10 million.
The Cape Town CBD has been a post-Covid success story, unlike the declines seen in Johannesburg and Durban, and has enjoyed an uptick in apartment sales over the last year.
Square meterage at apartments sold in these blocks were as follows:
16 on Bree, CBD – R122 857/sqm
The Docklands, De Waterkant – R76 316/sqm
Faulconier, Foreshore – R67 403/sqm
Century City, just a 15-minute drive from the CBD, is a popular area for apartment rentals. Prices range from R2m to R4m, with the highest rental achieved being R70 000/month for a furnished unit at Crystal Towers.
EXPATS INVEST IN SA PROPERTY
In spite of challenges like load shedding, water shortages and rampant crime, many South African expats are finding reasons to return home.
With better economic opportunities abroad and having more buying power, expats are investing in property in South Africa thanks to the favourable exchange rate.
Cape Town has one of the best performing luxury markets in the world. The latest wealth report from global estate agency Knight Frank has put a lot of this into perspective.
In London, R18.8m can purchase around 33 square metres of property, and for the same amount in Sydney, buyers can secure an extra 10 square metres.
In Cape Town however, investors can buy 196 square metres for that amount.