CAPE TOWN 2022 Market predictions, trends and the end of Covid?
2022 has hit the ground sprinting which is why this article is 5 weeks late. Q4 2021 showed unprecedented levels of activity in sales and rentals including the Christmas period. There was no break for any agent worth their salt. Speaking to professionals in the industry, many predict a boom in the Cape Town property market and I would tend to agree. I believe (and I haven’t been wrong yet) that 2022 will continue to experience strong demand in rentals and sales in Cape Town. The combination of a strong rental and sales market is an unsavory thought for tenants.
Quickly jumping back to Q4 2019, the residential sales market started to move after three years of doom and gloom from politics to a drought. Then COVID hits and we are all brought to a standstill globally. However, in July 2020 when South Africans were allowed to move around and estate agents were allowed to sell and rent property, the lower end of the market exploded. People had been locked up, they needed space inside and outside, they no longer had to live in a location dictated by work as they are now working from home.
Fast forward to January 2022 and the market is busy across the board including the luxury market in Cape Town encompassing the Atlantic Seaboard, Waterfront, Bishopscourt, Newlands and Constantia Upper. Fellow agents in The Winelands are also run off their feet with demand for lifestyle properties.
South Africans were given a respite from international buyers and had the freedom of the market without the influence of strong cash buyers with Euros, Dollars and British pounds. The semigration from Johannesburg, Pretoria and KZN has really driven the Cape Town market. However, we saw a flutter of international buyers in Q4 2019 including unseen sales and I believe the next three months will see a spike in international interest. Hardie Property is experiencing strong interest from the British, Europeans, Americans and the UAE.
What makes an area a HOT SPOT for buyers? Schools are a huge drive especially in the Southern Suburbs. Lifestyle – whether it is a walk on the promenade, access to a beach, walk in a forest or access to the Cape Town wine farms. Security is very key, especially for the Johannesburg buyers. Developers can’t build enough secure estates.
Hardie Property has experienced strong demand for Constantia and surrounds with areas like Meadowridge and Bergvliet seeing demand outstripping supply. Newlands, Bishopscourt Village, Rondebosch and Claremont are very driven by schools. Family homes in Oranjezicht and Higgovale are also in strong demand due to the central location but also schooling in the area. The Atlantic Seaboard is a plethora of areas with buyers and tenants chasing the views or the convenience and village feel of Green Point and De Waterkant. Luxury homes in Fresnaye, Bantry Bay and Clifton have really seen a surge in sales. The Camps Bay market has had a revival after being one of the worst hit suburbs in Cape Town during the doom and gloom years of 2017-2019. Llandudno is becoming increasingly attractive and is considerd to be one of the safest neighbourhoods in South Africa.
THE LESS KNOWN NEIGHBOURHOODS AND AREAS
As an agent I have discovered that buyers are completely unaware of certain neighbourhoods and estates which are highly desirable. Property portals restrict agents from listing in the more well known neighbourhoods and the likes of Steenberg Golf Estate, High Steenberg, Silwersteen, Nieuwe Steenberg, Silvertree, Zwaanswyk and Stonehurst are often by-passed in a buyers search. These areas include prime real estate and in particular security estates with magnificent views and amenities.
IS IT THE END OF COVID RESTRICTIONS?
It certainly feels like we are heading in that direction. Denmark has just lifted all restrictions and I am sure many other countries will follow. In Cape Town it feels like life has returned to normal apart from compulsory mask wearing. The peak traffic is back to normal, kids are all back at school and the property market is booming.