{"id":788385,"date":"2024-08-27T14:00:00","date_gmt":"2024-08-27T12:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=788385"},"modified":"2024-08-27T14:06:10","modified_gmt":"2024-08-27T12:06:10","slug":"six-homes-in-cape-town-sold-for-between-r26-million-and-r66-million","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/788385\/six-homes-in-cape-town-sold-for-between-r26-million-and-r66-million\/","title":{"rendered":"Six homes in Cape Town sold for between R26 million and R66 million"},"content":{"rendered":"\n
Pam Golding Property CEO Andrew Golding says the luxury end of the South African housing market has seen remarkable strength with numerous multi-million-rand house sales.<\/p>\n\n\n\n
This comes as the outlook for South Africa\u2019s housing market is looking increasingly optimistic with several positive indicators.<\/p>\n\n\n\n
The positive developments include petrol price cuts, an imminent interest rate cut, improved confidence, and the prolonged load-shedding reprieve.<\/p>\n\n\n\n
Golding said sellers and buyers, including investors, who had previously been hesitant about property transactions are now committing to them.<\/p>\n\n\n\n
The Pam Golding Residential Property Index confirms this trend. National house price inflation rose to 4.7% in July 2024, the highest level since February 2022.<\/p>\n\n\n\n
The luxury end of the market has been particularly strong with a significant reduction in stock levels, driving up prices.<\/p>\n\n\n\n
\u201cConfidence has returned to the luxury property market, driven by positive sentiment, improved financial conditions, local stock markets, and stable government,\u201d Golding said.<\/p>\n\n\n\n
There are significant stock shortages in the Cape\u2019s luxury market, and due to limited stock, pressure is building in pricing.<\/p>\n\n\n\n
In the market’s high-end or R20-million-plus bracket, Pam Golding Properties has concluded some notable sales on the Atlantic Seaboard.<\/p>\n\n\n\n
The sales include a house in Clifton which sold to a Gauteng-based businessman for R66 million.<\/p>\n\n\n\n
The company also sold a house in Camps Bay for R33.8 million and an apartment in Mouille Point for R27 million.<\/p>\n\n\n\n
\u201cIn sought-after Constantia Upper in Cape Town\u2019s Southern Suburbs, we have concluded notable home sales for R54 million, R45.5 million, and R26 million,\u201d he said.<\/p>\n\n\n\n
In the Boland and Overberg regions, the company has successfully concluded individual sales of homes for R20 million plus.<\/p>\n\n\n\n
Somerset West has become a popular destination for rich South Africans, while areas such as Paarl, Hermanus and Durbanville also attract new buyers.<\/p>\n\n\n\n
Golding said the expansion of the Cape Winelands Airport into an international commercial airport is significant for this region.<\/p>\n\n\n\n
The airport is set to open in 2027 for domestic and international flights, adding value to properties in the region.<\/p>\n\n\n\n
Another positive development is road infrastructure upgrades, including extending the R300 from the N1 to the urban edge north of Wellington Road in Durbanville.<\/p>\n\n\n\n
\u201cIt will form a ring road around the Cape metropole and accommodate increasing traffic volumes,\u201d Golding said.<\/p>\n\n\n\n
It is not only the high-end of the South African property market which is improving. The lower-end is set to experience a big improvement with lower interest rates.<\/p>\n\n\n\n
\u201cThe lower end of the market, including first-time home buyers, is particularly sensitive to the higher interest rates currently applicable,\u201d Golding explained.<\/p>\n\n\n\n
Green shoots are appearing in the low-end of the market with confidence that the interest rates will soon start decreasing.<\/p>\n\n\n\n
According to ooba, national applications for first-time buyers rose to 46.6% in July 2024, rebounding from a subdued 44.3% in June.<\/p>\n\n\n\n
\u201cThis anticipated rebound in first-time buyers is likely to see stronger demand for homes around the R1 million mark in urban nodes, which typically means sectional title properties,\u201d he said.<\/p>\n\n\n\n
Furthermore, mortgage applications from self-employed individuals rose to a record 13.3% in Q2 2024, and cash sales soared to a record 60.2%.<\/p>\n\n\n\n
\u201cThe recent surge in local cash buyers has seen a sharp increase in demand for investment properties, particularly in the Western Cape,\u201d Golding said.<\/p>\n\n\n\n
Golding said that overall, there are growing expectations that the GDP growth rate in 2025 may surprise on the upside, which will underpin the housing market.<\/p>\n\n\n\n
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