Record sales to international buyers in Cape Town hotspots this year

Correlating strongly with City of Cape Town reports of a record-breaking summer tourism season,  international property buyers have invested in record numbers in the City’s hotspots, according to the Seeff Property Group.
 
Propstats data indicates that sales amounting to almost R2.462 billion were achieved in the first five months of this year, the highest recorded in the last five years. The total value for the entirety of 2024 was R3.4 billion, which was comparable to the previous year, 2023.
 
Sales to international buyers reached a record R600 million in February and R700 million in April across the whole city. More than two-thirds (67%) of the total value were generated by sales across the Atlantic Seaboard and City Bowl.
 
Ross Levin, licensee for Seeff Atlantic Seaboard, states that sales activity has increased significantly this year. For the Atlantic Seaboard alone, sales to international buyers total approximately R530 million for April. Overall, there were transactions in nearly all of the suburbs. The highest values recorded are in Camps Bay and Bantry Bay, while the highest volumes are in Sea Point (27) and the CBD (32).
 
Buyers from over 40 countries have invested in property across the Cape this year. The highest volume can be attributed to buyers from Germany, followed by those from the UK, Netherlands, Switzerland, and other European nations. There has also been a significant increase in sales to American buyers, who predominantly purchased in Sea Point, Bantry Bay, Mouille Point, and the City Bowl.
 
Buyers from other African countries have also made a welcome return. These include approximately twelve countries: Angola, Cameroon, Congo, eSwatini, Gabon, Ghana, Mauritius, Mozambique, Namibia, Nigeria, Tanzania, and Zambia, with Nigeria standing out in terms of sales volume.
 
Levin states that the entire market along the Atlantic Seaboard and in the City Bowl has been highly active, resulting in a shortage of stock and presenting good opportunities for sellers at present. Recently notable Seeff sales to foreign buyers include two sales to German clients at R21 million in Camps Bay and R29 million at the Waterfront, along with a R29.5 million sale at the Waterfront to a buyer from eSwatini.
 
Other areas where international buyers have been active include Constantia and Bishopscourt in the Southern Suburbs, False Bay areas such as Muizenberg and Fish Hoek, Southern Peninsula suburbs like Kommetjie and Scarborough, Hout Bay, and Blouberg, where Marlene Picksley, an agent with Seeff Blouberg, concluded a record sale of R16.5 million in Sunset Beach to a buyer from the USA.
 
Hout Bay has experienced particularly strong demand from international buyers, with up to 37 sales made to purchasers from various countries, notably Germany, the Netherlands, the UK, Denmark, and other European nations, as well as the USA. According to Stephan Cross, manager for Seeff Hout Bay and Llandudno, the buyers spent between R5 million and R25 million.
 
He states that the Hout Bay market has been particularly active this year, characterised by high sales activity and a shortage of stock, creating excellent opportunities for sellers, he notes. Propstats indicates that total sales across the entire Hout Bay market have already surpassed R600 million for this year, following a record R1.3 billion last year, significantly higher than in 2023 and resembling the sales levels seen during the 2022 Covid boom.
 
Levin states that Cape Town is particularly appealing to international buyers, including those from the African continent, due to its Mediterranean climate, cosmopolitan lifestyle, and access to excellent amenities. International buyers are not only enthusiastic investors in property but also tend to spend more on a per capita basis, often investing even more in upgrades and their lifestyle, all of which contributes to a significant influx of foreign income for the local economy.