Cape Home Prices Soar

DRAWBACK: ROCKETING PROPERTY MARKET MEANS SKY-HIGH RATES

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Over the last 15 years, the only metro that has shown real house price appreciation (when removing the impact of inflation) is the City of Cape Town.

According to an analysis by Codera Analytics, residential property in the city is up 19%. (In Joburg, by contrast, prices are down 21% in real terms since 2010.) When factoring in the impact of inflation, house prices have practically doubled since Cape Town hosted the FIFA World Cup.

The lived experience of Cape Town homeowners is, however, starkly different.

There is near-insatiable demand for residential property, with stories about double- and triple-booked viewings resulting in immediate offers and bidding wars becoming common, especially in sought-after areas.

Because of the run-up in house prices, the rental market is even worse.

A previous analysis by Moneyweb of rates and municipal charges across major metros in 2022 showed that Cape Town has the lowest rates per R1 million valuation. However, this was only half the equation, as the value of properties in the Cape is structurally higher than in Joburg.