Sales soar in Cape Town's sizzling CBD

The desire to live in a trendy spot in the heart of Cape Town is driving sales like never before

According to the most recent State of Cape Town Central City Report, the demand for residential property in the CBD is still high and, perhaps more importantly, 91,3% of those already living in the area are extremely happy with their choice of location. To highlight the appeal of the area, 89% believe that the Cape Town CBD is the best in South Africa.

Its desirability has had a direct impact on property values. Alisdair Crofton, Rawson Property Group Cape Town CBD’s franchisee, says that the total residential market value of properties in the CBD was R6,12bn in 2005, and this has skyrocketed to R23,72bn. He maintains that the value of the 191 residential properties sold in 2014 was just under R300m.

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So what makes this area so alluring? One of the main attractions appears to be the commute – or rather the lack of one – for residents living in this part of the city.

Crofton notes: “The history of any city anywhere will always show that people simply will not put up with time-wasting commuting for more than a decade or two – which is one of the reasons why the London and New York central city residential property prices have reached such incredible levels. The same aversion to commuting is very obvious among those who live in the Cape Town CBD, many reporting that moving to this area has freed up two to three hours a day, giving them additional time for both work and recreational activities.”

Seeff CBD agents Jason Paans and Warren Emett say that Cape Town’s CBD, in addition to being the market leader in terms of urban residential property, has become one of the most dynamic property markets in the country, with demand consistently exceeding supply.

“Five years ago, almost nothing sold above the R1,5m price mark, whereas now there is almost nothing on offer below this price mark. Apartments are still selling twice as fast compared to five years ago, and while the average sales cycle is now sitting at around 47 days, well-priced units can sell within a week of coming onto the market. Sellers are now getting on average just 5% less than their asking price and about half of all recent sellers have achieved just about or full asking price.”

This article was originally published in Sunday Times Neighbourhood: Property & lifestyle guides. Visit yourneighbourhood.co.za, like YourNeighbourhoodZA on Facebook and follow YourHoodZA on Twitter.