{"id":243571,"date":"2018-05-10T12:25:46","date_gmt":"2018-05-10T10:25:46","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=243571"},"modified":"2018-05-10T12:25:46","modified_gmt":"2018-05-10T10:25:46","slug":"the-best-and-worst-areas-in-cape-town-for-property-growth","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/243571\/the-best-and-worst-areas-in-cape-town-for-property-growth\/","title":{"rendered":"The best and worst areas in Cape Town for property growth"},"content":{"rendered":"

FNB has released its Cape Town property barometer for the first quarter of 2018, looking at which suburbs have seen the most growth.<\/p>\n

It found that while the majority of regions still show relatively strong growth, 8 of the 12 defined sub-regions saw their year-on-year growth slow in the first quarter of 2018 – with the slowest growth rate now recorded in the City\u2019s most expensive region, the Atlantic Seaboard.<\/p>\n

“However, in the more affordable regions the slowing trend is less apparent than the higher priced end, with certain of these sub-regions even showing recent price growth accelerations,” said FNB’s property sector strategist, John Loos.<\/p>\n

“This, we believe, continues to be the result of the relative unaffordability in higher end sub-regions after recent years of strong price growth, encouraging a search for relative affordability lower down the price ladder in the more affordable sub-regions,” he said.<\/p>\n

Mountain and the City Bowl<\/strong><\/p>\n

In the first quarter of 2018, Loos said that FNB saw further slowing in house price growth in the City Bowl and the other major 3 sub-regions closest to the City Bowl (in and around the Cape Peninsula).<\/p>\n

“These sub-regions near to the city and the mountain have shown some of the strongest house price inflation of all of the Cape Town subregions over the past 5 years, and this prior deterioration in home affordability appears to have led to slowing demand, and thus price growth, in recent quarters,” he said.<\/p>\n

He added that the most expensive sub-region in the City of Cape Town Metro, the Atlantic Seaboard, has seen its average house price growth slow the most sharply off the highest base – from a revised multi-year high of 27.5% year-on-year<\/strong> in the final quarter of 2016 to 2.3%<\/strong> by the first quarter of 2018.<\/p>\n

“This does not surprise us, as this sub-region has experienced the most rapid cumulative growth of all the sub-regions over the past 5 years, to the tune of 111%,” he said.<\/p>\n

“The City Bowl started its price growth slowdown a little earlier than the Atlantic Seaboard, and has gone from its revised multi-year year-on-year growth high of 23.6% in the 2nd quarter of 2016 to 10.0% by the 1st quarter of 2018.<\/p>\n

“The Southern Suburbs, the other one of the \u201cmost expensive 3\u201d sub-regions, saw further slowdown from 10.1% in the prior quarter to 8.4% in the 1st quarter of 2018, having gradually slowed from a multi-year high of 16.1% in the second quarter of 2015,” he said.<\/p>\n

Reflective of this heightened search for relative affordability, Loos said that FNB had found that the most affordable sub-region within close proximity to the City Bowl, the Near Eastern Suburbs sub-region (including amongst others Salt River, Woodstock and Pinelands), shows the fastest house price growth of these \u201cMajor 4\u201d sub-regions in or near to the Cape Peninsula.<\/p>\n

“Proximity to the City Bowl (and for that matter to Claremont Business Node) is becoming increasingly important as the city\u2019s traffic congestion deteriorates,” he said.<\/p>\n

This rapid price inflation has been seen in other areas further outside of the city including the northern suburbs, Western Seaboard Sub-Region (including Blouberg, Milnerton and Melkbosstrand) as well as the Cape Flats, Loos said.<\/p>\n

\"\"<\/a><\/p>\n

\n

Read: The cities where South Africans are buying and selling homes the fastest<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

FNB has released its Cape Town property barometer, looking at which suburbs have seen the most growth.<\/p>\n","protected":false},"author":10,"featured_media":135767,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[76,26],"class_list":["post-243571","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-fnb","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/243571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=243571"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/243571\/revisions"}],"predecessor-version":[{"id":243585,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/243571\/revisions\/243585"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/135767"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=243571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=243571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=243571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}