Cape Town affluent property prices falling

Latest property figures show that Cape Town's most affluent suburbs are in a slump.

CAPE TOWN - Cape Town's most affluent suburbs are feeling the pinch in a depressed economy.

Latest property figures show that the Atlantic seaboard in particular is in a slump.

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The sale of Waterfront properties is the lowest it's been in a decade but in the city's less sought-after, middle-income suburbs, there's been an uptick in sales.

Cape Town has traditionally been the city where property sales are above the national average but that's no longer the case. 

Even on one of South Africa's richest streets, where homes fetch upwards of R60-million, the past year has seen less enthusiastic multi-million rand purchases.

Property mogul Lew Geffen says foreign buying has almost all but dried up. 

He attributes this to instability within the country. 

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Geffen said, "the infighting within the ANC and the general uncertainty, and the power and that's adding fuel to the fire. Generally we've been in recession for two years. Johannesburg was first, and now it's come to Cape Town this year and therefore volumes have gone down."

On the other end of the city, property seekers are finding homes in less well-known areas like this, that that are more affordable.

Vredelust in Kuils River is more than 30 kilometres from the city centre but a local agent says the area offers a wide variety of options for a young professional at astarting price of around R1.2 million.

Grosch Properties CEO, Roslyn Grosch lauded the positive qualities of the neighbourhood.

While Geffen is not holding out much hope of improvement in 2020, Grosch says she believes the middle-income band, will keep the market ticking over.

Source
eNCA