The overall value generated in Cape Town’s City Bowl reached a record-high of R2,36bn last year – double that of 2010 (R1,16bn) and 19% more than the R1,9bn generated in 2015.
According to Billy Rautenbach, sales director for Seeff’s operations across the City Bowl area, the post 2007/08 period saw the CBD and City Bowl suburbs being among the worst-performing in Cape Town, with homes sitting on the market for up to 180 to 250 days. However, by 2015 this improved to below 50 days on average and last year it dipped to 42 days on average
“Five years ago sellers were getting offers of 10% to 20% below the asking price on average,” said Rautenbach. “By last year, this had halved to around 5% to 6% despite the higher prices achieved. In reality about half of all deals are still concluded for almost full price. A notable upside surprise is the phenomenal year-on-year growth in the average selling prices of 17% to 18% measured overall for the market.”
Rautenbach said there was also a clear shift to younger buyers, not just in the CBD, but also in suburbs such as Tamboerskloof, Oranjezicht and Higgovale.
“Up to 30% of buyers over the last year fall into the millennial under-35 age bracket and a further 40% are below the 50-year age group.
Photo: New to the City Bowl market is a boutique development offering two-bedroomed units (87m² to 100m²) with high-quality finishes, including Oggie wooden flooring, parking and a communal rooftop deck with a pool and barbeque facilities. Prices start at R4,071m (including VAT). Completion in 2018