SKY-HIGH AND RISING
Why Cape Town property prices are still shooting up
The still strong buyer demand from ‘semigrants’ and foreigners continues to drive Cape Town house prices higher, but is the city’s outperformance sustainable?
Cape Town’s house prices continue to defy gravity, with the Western Cape capital’s market seemingly left unscathed by the economic and political uncertainty that has dogged buyer confidence in the rest of the SA property sector. Latest figures released by FNB show that Cape Town has further extended its house price lead over other major metros, with an 8.4% increase in the third quarter (year on year), bringing the Mother City’s five-year house-price gain to 64%. That’s more than double the 20%-30% achieved in other cities over the same period. Demand for apartment living in Cape Town’s V&A Waterfront and the city centre appears to be particularly buoyant, with prices of new sectional title developments continuing to test new highs. The V&A recently breached R200,000/m² when a luxury penthouse spanning 400m² at the Silo 3 development fetched R84m. That translates into a staggering R210,000/m², which is believed to set a new record for SA sectional title prices on a R/m² basis.Norber...