According to Knight Frank’s recently published Prime Global Cities Index, Cape Town was a top performer for the second quarter of the year, with the city’s annual property price growth reaching double figures in the year to June.
This puts Cape Town in third place for prime price performance by city, with Shanghai in second and Vancouver in first.
“Many prime cities are seen to be curbing foreign investment with cooling measures in place,” says Richard Hardie, Knight Frank’s manager for the Atlantic seaboard.
“London is a prime example of this with measures including higher taxes and rate hikes, especially on the buy to let market, which has become a growing market for buyers with the available cash to purchase properties that appeal to the professional rental market or holiday rentals.”
Hardie says the Cape Town property market is buoyant with interest from locals and foreigners.
“Cape Town is benefiting from a number of factors. These include people living in Cape Town and commuting to Joburg for business and a university providing too few rooms for its 27 000 students. There is also progressive CBD with increasing residential units and lifestyle options to match including restaurants, bars, art galleries and gyms. Foreign buyers also took advantage of the weaker rand in the latter part of 2015 and early 2016,” says Hardie.