Super luxury home-sales boom, Joburg buyers pay more for Cape Town houses

Source: Supplied. Fresnaye (Head Road) - luxury villa on the market for R75m.

This is according to the Seeff Property Group which has sold 20 properties over the exclusive R20m price mark in Cape Town this year. Notably, wealthy Gauteng/Joburg buyers have bought more homes priced over R20m in Cape Town this year compared to the wealthy suburbs of Johannesburg/Sandton.

Three of these were over R50m, and among the 10 highest prices paid, says Ross Levin, licensee for Seeff Atlantic Seaboard, Waterfront and City Bowl.

Almost 120 properties have sold over the R20m price mark in Cape Town to the total value of over R3.6bn according to data from Propstats. At least 10 were over R50m each, mostly in Clifton, Camps Bay, Bantry Bay, The Waterfront, and Constantia Upper.

Levin says the Atlantic Seaboard and City Bowl has enjoyed a strong year, with activity across all price bands, and a significant number of sales over R20m. Camps Bay already stands on over R1bn in sales with three houses sold over R50m. In Clifton, Gauteng buyers have paid up to R66m for a luxury home.

Even the City Bowl suburbs of Higgovale, Oranjezicht and Tamboerskloof have seen sales over R20m, mostly to local buyers with one Gauteng buyer paying R30m for a house in Higgovale, and a UK buyer paying R43m for a house in Oranjezicht.

Based on this year’s sales data, Cape Town’s top 10 suburbs all boast an average house price of over R10m with four suburbs, being Clifton (R43m), Llandudno (R27m), Camps Bay (R21m), Higgovale (R20m), topping the R20m average price mark.

Top 10 Cape Town Suburbs by Highest Ave Price (2024):
Clifton (ave price R43m) - 11 sales from R20m to R66m (Gauteng buyer)
Llandudno (ave price R27m) - 5 sales from R20m to R45m (Dutch buyer)
Camps Bay (ave price R21m) - 16 sales from R20m to R68.25m (Dutch buyer)
Higgovale (ave price R20m) - 7 sales from R20m to R32.5m (Cape buyer)<
Bishopscourt (ave price R19m) - 11 sales from R20m to R43.5m (Cape buyer)
Constantia Upper (ave price R18m) - 20 sales from R20m to R48m (Polish buyer)
Bantry Bay (ave price R17m) - 5 sales from R20m to R51m (Gauteng buyer)
Fresnaye (ave price R15m) - 4 sales from R20m to R45.9m (Cape buyer)
Waterfront (ave price R15m) - 9 sales from R20m to R50.4m (Cape buyer)
Oranjezicht (ave price R10m) 1 sale at R43m (UK buyer)
(Source: Seeff/Propstats)

Francois Venter, lead agent for Seeff “The Uppers” says it’s no surprise that Constantia Upper and Bishopscourt rank in the top suburbs in Cape Town. Constantia Upper already stands on over R1.4bn in sales (excluding developments) this year with a significant 22 sales priced at over R20m each this year with the Seeff team selling six of these, mostly to local buyers.

Source: Supplied. Constantia Upper (Brommaert Avenue) - luxury home listed at R25.45m sold by Seeff to a local Cape buyer.

In Bishopscourt, a notable 11 homes sold for over R20m in Bishopscourt, two sold by Seeff. The estates also continue seeing strong prices with sales of R35m and R39m in Silverhurst Estate.

He says the “Uppers” have seen some of the highest volume of luxury sales in recent years. There are also many sales which take place “off the market”, meaning they are not listed publicly. Access to top schools and UCT, a private, suburban lifestyle with secure and well-maintained green neighbourhoods, and excellent property value growth are drivers of the demand.

By way of example, a luxury property in Bishopscourt, which Seeff sold for R14m about 10 years ago, is now on the market for R26m, thus almost doubling in value.

A recent StatsSA House Price Index shows Cape Town property growth outstrips the country by some margin with prices surging by 30% over the last five years, significantly higher than Johannesburg's 8.6% growth. Cape Town recorded growth of 6% on average last year while Johannesburg experienced a 1.3% decline.

Good service delivery and well-managed infrastructure combined with the lifestyle and excellent capital value growth underscore the strong property market and its potential for significant capital appreciation.