The real estate industry took heart last year when the property industry rallied, despite the onslaught of Covid-19 and lock down. Now, over halfway through 2021 the housing market continues to enjoy robust sales figures, despite the many financial challenges created by the pandemic.
“The decision to maintain interest rates at the lowest offered in over five decades, coupled with the many well-priced properties currently on the market, has resulted in a surge of buyer activity,” says Alexa Horne, MD of Dogon Group Properties. “Initially we were seeing many first-time home buyers taking advantage of the favourable lending conditions, however, of late we are seeing a steady increase of buyers across the board in all price brackets.”
According to Horne, Dogon have experienced strong demand over the last few months. Areas in the Atlantic Seaboard, such as Oranjezicht, Sea Point, Fresnaye, Bantry Bay and Green Point (to name a few) remain a firm favourite amongst buyers, with the Southern Suburbs following hot on its heels as one of the most popular suburbs in Cape Town. Places such as Newlands, Constantia, Rondebosch, Bishopscourt and Kenilworth Upper continue to attract buyers who are drawn to the area for its myriad of offerings.
“Interesting to note is that the semigration trend continues to gain momentum, with many buyers coming from Gauteng. This is a movement that we anticipate will gain traction in the coming months as more families relocate to the Cape from Gauteng and Kwazulu Natal following the unrest that has been taking place in these provinces,” says Horne.
“Excitingly, there are many foreign buyers purchasing property in Cape Town, with particular interest from German and Austrian nationals. It is wonderful to see international investment returning to the South African property market, and indicates the value offered by our local real estate, together with the quality of life to be experienced in the Cape.”
Amongst the sales made in recent months by the Dogon team are some stand-out deals such as a home in Kloof Road that sold for R72 500. Two homes sold in Ocean View Drive for R62 million and R30 million respectively, and an apartment at the V&A Waterfront sold for R31.2 million. In the Southern Suburbs a home in Constantia sold for R26 million and one in Constantia upper sold for R24 million.
And it is not just sales that are booming. According to Horne high-end rentals are also experiencing a surge in Cape Town with the rental team having recently concluded deals such as two houses in Camps Bay for R180k and R85k per month, two rentals in Fresnaye for R130k and R75k respectively, an apartment at Bantry Hills for R70k per month, another nearby in Bantry Bay for R45k, and two rentals in Upper Constantia for R87k and R80k per month. “People looking to rent in Cape Town, such as professionals relocating from Gauteng and foreigners, often have large monthly budgets to spend on rental and are looking for family homes in upmarket areas,” says Horne.
The relocation of people from other countries and provinces to Cape Town is a trend that does not look set to die out any time soon and it has shaped, and will continue to shape, the real-estate landscape in the province as more developments and offerings are tailored to suite the wants and needs of these new residents.