Foreigners increasingly attracted to Cape Town’s buoyant property market

Foreigners increasingly attracted to Cape Town’s buoyant property market

Annually, Cape Town receives droves of foreign tourists excited to experience the city’s natural beauty and authentic culture. Statistics SA revealed that for the first time, the city attracted 1 012 641 tourists in the month of January 2016, representing a 15 percent increase compared to January 2015. These tourists have started a new trend, one that speaks of the innate appeal of Cape Town.

Our city is fortunate in that many visitors coming purely for a holiday experience, fall in love and decide to buy residential property, either as an investment or for living purposes. Various factors have contributed to this trend, from a depreciating Rand resulting in greater affordability for local property on the international market, to the city’s appeal, defined by unparalleled natural attractions and good city management. Coupled with this, the properties available are well-sized and offer a good quality of life, with many high-end homes available for less than $1 million.

Cape Town is most popular among buyers from Europe and the wider Africa, with 20-30 percent of these comprising of South African expatriates. According to PropStats, in the Cape Peninsula sales to foreigners increased by 28 percent over the November and December 2015 holiday period in comparison to 2014. Whilst sales in January and February 2015 increased by 21 percent.

The Southern Suburbs – Bishopscourt; Constantia; Claremont; Kenilworth and Newlands – have also experienced a general upward trend. Last year, UK buyers were most popular, followed by Kenyan, Cypriot, Chinese and French buyers.

This has resulted in much of the stock being cleared, with many areas experiencing stock shortages. As demand increases and available stock decreases, the market is leaning favourably toward sellers. The increased demand makes it an ideal time for sellers to put their properties up for sale as they are likely to receive a higher return on investment.

Amid a new holiday season, sellers looking to take advantage of the favourable conditions can list their residential properties with Pam Sorel Properties. With 30 years’ experience specialising in Cape Town’s Central Southern Suburbs, Pam Sorel takes pride in showcasing properties in the best possible light – from descriptive advertisements and brochures to high-quality images.

Across the City Bowl, Northern Suburbs and Southern Suburbs, through to the South Peninsula, Helderberg and West Coast, Cape Town’s suburbs are more than just a place to spend time off, it has grown into a place to call home as foreigners flock to buy property. During this period, those considering placing their home on the market are encouraged to do so, as this year’s holiday season is expected to draw in even more foreign buyers eager to tap into the undersupplied and highly-demanded Cape Town residential property market.