CAPE Town residential prices grew by 9.2% in the year to June, which was the ninth best in the world, according to Knight Frank Global Cities Index Q2.
Responding to these findings, Knight Frank believes there are a number of factors that lie behind the bucking of the general trend, both locally and internationally.
One of these is the city’s natural beauty; another, according to Anne Porter, chairman of Knight Frank Residential, is the Mother City’s amenities.
“It is packed with worldclass restaurants, vibey clubs and bars, a thriving, innovative music and art scene, and was even the World Design Capital in 2014,” she says.
Porter says the region is also a highly desirable destination for tourists from all over the world who, “once smitten”, are often enticed to buy a second home.
The “swallows” – mostly Britons and Europeans – tend to spend their long, wet winters at their Cape residences.
“Their strong currencies often allow them to buy properties that are twice the size of their northern homes, for a fraction of the price.”
An increase in semigration is also contributing to the growth in residential property prices, Porter says.
“People are moving for a variety of reasons. Some are scaling down, but this seldom means that they are buying cheaper properties.
“Nearly 40% of houses sold on the Atlantic seaboard in the past year were bought by people from Gauteng.
“Properties in Newlands, Claremont, Rondebosch and surrounds are in great demand from new upcountry buyers,” she says.
Porter says many younger families are choosing the area for its proximity to the plethora of excellent schools and quality housing and services.
In addition, Auditor-General Kimi Makwetu said Cape Town was the only metro that received a clean audit in the 2015/ 2016 local government audit, which was released in June.
Porter says people are voting with their feet and moving to what they perceive to be a better quality of life.
“Whatever the particular personal reasons for relocating, the choices are enticing,” she says.
“From a townhouse to an equestrian estate in Constantia or Hout Bay, a family home or wine farm in the winelands, an apartment in the City Bowl, or a historic grand old lady in Oranjezicht, Cape Town continues to offer the sort of variety to suit every palate and every pocket,” says Porter.