Ten years ago, the average house price in Claremont, Cape Town was R1,9m; today it is R3,58m – an increase of 88.4 percent.
Other southern suburb areas to have experienced huge price growth since 2013 are Kenilworth, Newlands, and Rondebosch.
Known for their leafy streets, excellent schools, stunning views, and convenient proximity to the city centre, Cape Town's southern suburbs have long been regarded as jewels in South Africa's real estate crown.
They have also weathered a decade of significant disruptions to emerge as one of the country’s strongest markets, says Claude McKirby, co-principal for Lew Geffen Sotheby’s International Realty in the region.
“The real estate market in the southern suburbs has proven its resilience time and again. Even amidst global uncertainties such as the Covid-19 pandemic, political turmoil, and economic floundering, this area has maintained its allure to both local and international buyers.”
Citing Lightstone data, he says that, despite the challenges of the past decade, median house prices in some suburbs have almost doubled since 2013 with excellent price growth seen across the board:
- Claremont: 88.4 percent increase, from R1.9m to R3.58m
- Kenilworth: 85.7 percent increase, from R1.4m to R2.6m
- Newlands: 70 percent increase, from R3.7m to R6.3m
- Rondebosch: 69.9 percent increase, from R2.9m to R4.9m
“That said, with demand currently high and stock levels low, you’d be hard-pressed to find a property at the average selling price in these areas as they are generally snapped up soon after listing.”
Not only have property values increased exponentially during the past decade, median sale price records have also been broken in most suburbs during the past two years, and record sale prices have been achieved in several areas.
During the past year, McKirby says the agency’s two Constantia teams and its security estates teams have been inundated with queries from buyers and sellers. Their sales volume and prices are a clear indication of the region’s popularity and market strength.
“And it’s not only family homes that are being snapped up, the top end of the market is also faring well. We’ve had a number of big-ticket sales recently.”
Propstats data shows that the highest selling price in the southern suburbs during the first half of 2022 was R39m, while Constantiaberg achieved a record sale of R100 million during that period.
“A year later, for the same period, the highest selling prices achieved were R56 million and R70 million for the southern suburbs and Constantiaberg respectively, indicating continued appetite and demand for high-end properties in these areas.”
Over and above the area’s excellent amenities, scenic surrounds and good schools, McKirby attributes the region’s notable market strength and resilience to its diverse range of property offerings that attract various demographics of buyers, as well as the limited supply of homes available.
“The scarcity of available land for development in these established suburbs has created a controlled supply of properties which has contributed to sustained demand. Buyers vie for a spot in these highly sought-after communities.
“And even though densification in recent years has increased the property offering, in some suburbs like Constantia, there are strict regulations in place.”
The southern suburbs also offer a very balanced lifestyle, combining the convenience of urban amenities with the tranquillity of suburban – and sometimes even rural, living.
“With a mix of excellent schools, parks, cultural attractions, leisure and sport activities and easy access to the city centre, this area appeals to families, professionals, and retirees alike.”
How to increase your home’s value
While a number of factors that influence a property’s value may be out of homeowners’ hands, there are still things within their control. The Seeff Property Group says the condition of a neighbourhood, street, or estate is a key factor influencing both the interest of the buyer in making an offer on the property, and the price they are willing to pay. Well maintained neighbourhoods and areas attract more buyers and achieve higher prices on average. There is a direct correlation between the condition of the area or estate and the perceived value of a property.
“Regardless of how appealing the property is, the initial impression formed by the buyer when seeing the surroundings influences their overall perception of the property's value. If the area is not neat, buyers will likely be put off before they have even seen the property or look for a discount on the price.”
Desirability and security, Seeff says, are affected by poor maintenance. In terms of the so-called ‘broken window theory’, poorly maintained areas send a message of a lack of care and vigilance, creating an environment more conducive to criminal activities.
As an area deteriorates and crime rates increase, it inevitably leads to a decrease in demand for properties and a decline in property values. In contrast, a clean neighbourhood conveys a sense of security and liveability which drives up prices due to demand for the area.
To take control of the maintenance of their areas, homeowners and residents can:
- Keep pavements and vacant plots neat and clean
- Keep your property neat and regularly painted. Poorly maintained properties do not only affect their own sellability, but also those of neighbouring properties
- Get involved with neighbourhood organisations and clean-up activities
If there are infrastructure issues, get hold of your local councillor or use local lobby groups to drive improvement and service delivery. You can also organise your own street or area clean-up.
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