In my 22 years working in real estate internationally, I have never experienced such a tough market for available stock. This also applies to the rental market.
I have worked in London, Guernsey, and Cape Town. I came to Cape Town in late 2016 and experienced the peaks and troughs until Covid. Post-COVID and the launch of Hardie Property, the market over a five-year period has gained momentum to the point that buyers and agents are scratching around to find properties.
As an agent, I have a list of buyers and tenants that I review daily. I have buyers/tenants messaging sometimes, once or twice a week, just to check in. Isn’t it meant to be the other way around?
These are not buyers or tenants with unrealistic budgets. Examples are R25,000,000 in Constantia, R15,000,000 in Newlands, R100k rental in Fresnaye, R11,000,000 in Claremont Upper. I currently have 17 core buyers and tenants on my list.
I said to a buyer only yesterday, ‘It is crazy how hard it is to find a house. ’ Another buyer said ‘dire’.
Properties are either being sold off-market or will be sold in a matter of days. Rentals go online for an afternoon and then get taken off due to the high level of interest.
Why is the market like this?
Cape Town, for decades, has been popular with the European markets. Those buyers were always prepared to take the risk when buying, taking into account the unstable political situation. From 2017 to late 2019, the market took a hard knock with further discomfort around the political landscape and a water drought, known as Day Zero.
Amongst this in 2018, Cyril Ramaphosa was sworn in as President and by the end of 2019 there were green shoots in the market as Cape Town overcame Day Zero and we headed into a new summer season filled with hope.
Cape Town has always been on the edge of greatness. It has always been known for its scenery, great food and friendly locals.
Cape Town has now tipped into greatness, and what contributes to this success?
Social media plays a huge role, whether it is an everyday traveller to Cape Town or an influencer. Our social media platforms in December 2024 were filled with every young influencer from around the globe. The awards and accolades received for being the best city in the world, the friendliest city in the world, and the most recent articles by James Edition and Savills. 4th for lifestyle globally and 6th for property growth globally.
Align the above with increased routes from the United States and more airlines choosing Cape Town as a favoured route. Never mind that Cape Town Airport recently won the best airport in the world. Article here.
What does the next 6 months hold for the Cape Town property market? There are rumours of tighter laws/taxes around Airbnb, which will help the long-term rental market.
Unfortunately, and this is only my opinion, stock availability is only going to lessen as we head into the summer season. We have only just tipped into Spring, and already we are awash with international buyers looking to buy on the Atlantic Seaboard, Constantia, Bishopscourt, and the Winelands specifically.
We aren’t the type of agency to call you or knock on your door so if you are thinking of selling, get in touch with us and we will get a Hardie Property team member to carry out a market assessment for you. (info@hardieproperty.com)
Richard Hardie
Managing Director & Founder