‘Trophy home’ sales in Cape Town are rocking

·16 Jun 2024

Trophy home sales in Constantia are soaring, with the luxury market continuing to see strong demand.

According to Rouvaun McKirby and Joanna Thomas from Lew Geffen Sotheby’s International Realty, there has been a large uptick in high-end sales during the past three years.

“There has been a lot more interest from wealthy upcountry buyers as well as UK and European investors, mainly HNW and UHNW individuals, and the R20 million plus price band has been very active, with a few of these sales exceeding R40m.”

“Although Constantia has always been popular with swallows, historically, high-net-worth individuals, particularly those from Europe, favoured investing in luxury properties within their own continent, and renowned cities like London, Paris, and Monaco have held a timeless appeal.”

“However, recent geopolitical uncertainties, economic fluctuations, and shifts in global dynamics have compelled investors to rethink their real estate portfolios, and many are now looking at Cape Town.”

This is shown in Propstats latest data, which shows that only seven of the 72 (9.72%) of the houses sold in Upper Constantia in 2018 were above R20 million.

However, in 2021, when lockdown eased and pent-up demand drove the market, 13 of the 102 homes for sale cost over R20 million (12.62%).

“In 2022, we really began to see the shifting trend with a significant spike in high ticket sales. Of the 85 house sales in Upper Constantia that year, 20 were priced above R20 million, with the highest sale price being R100m for one of the last remaining farms.:

“And this year, by the end of May, 31 houses had been sold with 11 (35.48%) properties being in the R20 million plus price band.”

The realtors said that the historic stability of residential property is attractive for investors during economic uncertainty. This is especially true for the more resilient luxury market, which tends to operate independently of general market trends.

In Constantia, growing demand from local and international buyers has skyrocketed the sale of trophy homes.

“The favourable exchange rate and Constantia’s unique blend of rural tranquillity and urban convenience, with world-class restaurants, wineries, golf courses and outdoor activities right on the doorstep, make Constantia an attractive investment for these buyers,” said the partners.

However, not all luxury markets are equal, and, as a general rule of thumb, a solid market with continued growth is where development continues regardless of the economic climate.

Below are several trophy homes available in Constantia for over R20 million: