Purchasing Trends In Western Cape Property Market 2018/9
Category Property Market News
Lightstone Property recently provided an analyses on the data and trends in the Cape Town Property Market which provides very illuminating information on e.g. the suburbs with the best capital growth as well as suburbs and streets with the highest average prices.
The Lightstone's analysis includes the data of nearly eight million registered properties across South Africa; 83,6% of which are residential properties and 16,4% non-residential. The total of 6,7 million residential properties are valued at R5,4 trillion; a figure which is heavily supported by the R2 trillion Gauteng market.
Freehold properties remain the largest percentage of total residential property value with 67,4%; estates follow at 18,3% and sectional title with 14,2%. Estates consist of a much higher proportion of total value vs. volume (only 6,59%) as these properties are on average valued at three times more than normal freehold properties. Freehold properties consist of 82,02% and sectional title properties 11,4% of total residential property volume.
Gauteng is still the province with the densest portion of total residential properties in both value and volume.
As it stands, a fairly big disparity exists in the location and value of residential property between the difference provinces of South Africa. The most residential properties (in volume and value) is in the two provinces of Western Cape (27,7%) and Gauteng (38,6%) with a total value of 56,3% of the national market value captured in these two provinces.
In a municipal breakdown, the following list includes the top five South African municipalities in terms of value;
In Johannesburg the suburbs of Bryanston, Morningside and Midstream are the highest valued suburbs, and in Cape Town; Sea Point, Rondebosch and Fresnaye are the areas that captures the most value. In an interesting finding, Umhlanga in Kwazulu-Natal also features amongst the top ten suburbs with the highest value.
Additionally, Lightstone data reveals the most expensive streets and suburbs in Cape Town, with the highest valued street being Beauvais Road in Bel Ombre with an average value of R43, 7 million per property.
Llandudno is the suburb with the highest value of R 19,3 million per property on average. The other top 6 suburbs in the Cape Town area are: De Bosch / Stellenbosch (R17,3 million), Constantia (R15,1 million), Bel Ombre (R14,8 million), Cape Town Waterfront (R14 million) and Higgovale (R13,7 million).
Like previous years, the Cape Town's property capital or house price inflation growth remains above the national average. The top ten inflationary growth suburbs in the Western Cape over the last 12 months are Sillwood Heights (13%), Voëlklip (12%), Hospital Hill (11%), Eikendal (11%), Hopefield (10%), Matroosfontein (10%), Schaap Kraal (10%), L'Agulhas (9%), Welcom (9%) and Pringle bay (9%).
One of the most encouraging findings in the Lightstone analysis is that the number of single female buyers has increased to over 71 727 in 2018; a figure which is almost 10 000 more than their male counterparts whom only account for 62 032 of homes purchased over the last 12 months. Male buyers do however still on average buy properties with a higher value than female buyers.
As a bustling cosmopolitan province, Cape Town should continue to show steadfast and reliable growth in the years to come.