Joburg and foreign buyers are flocking to these areas in South Africa

While 2021 has been a great year for property, the story of the year is the significant uptick in the R20 million-plus sector and sales to foreign buyers which is at the highest level in over three years, says Samuel Seeff, chairman of the Seeff Property Group.

This, despite the challenges resulting from the Covid-19 lockdowns, July-riots and lack of GDP growth.

The Seeff Property Group ends 2021 with the highest sales in its 57-year history, 36% higher up on 2020, he said. Aside from strong performances across the urban, country and coastal markets, the notable uptick in sales to foreign buyers and high-value R20 million-plus sales have been a boon.

Seeff said it has made over 10 high-value sales including R55 million and R60 million in Plettenberg Bay (both record prices), R55 million and R45 million at the Waterfront (both the highest prices in eight years), R52 million in Camps Bay (the highest record for an agency) along with sales of R32,38 million and R28 million in the suburb, R40 million in Fresnaye, R23.5 million and R26 million in Bishopscourt, R20 million in Constantia and R62.5 million in Franschhoek.

Deeds data from Lightstone indicates that property sales in Franschhoek over the past twelve months (October 2020-November 2021) total R496 million, noted Aimee Campbell, who heads up the Franschhoek office for Greeff Christie’sInternational Real Estate.

“The growth in sales for the area has been phenomenal – it’s more than double the sales figures achieved during the previous 12 months,” she said.

Lightstone reveals that the majority of recent buyers in Franschhoek are aged between 36 and 64, with a growing number (almost 40%) in the 36 to 49 bracket.

“It’s clear Franschhoek is no longer just a weekend destination or a haven for the retired,” said Campbell. “An increasing number of recent buyers who have actually relocated their families to Franschhoek have made the move because they are now able to earn a living remotely,” she said.

“We’ve seen an influx of buyers from Cape Town, Durban and Johannesburg.”

She said that foreign buyers have also been among those who have chosen to live in Franschhoek and work from their homes.

“Our sales to foreign buyers are largely due to our prestigious affiliation with global property giant Christie’s International Real Estate. Their worldwide network comprises approximately 138 affiliates, hand-selected for their success in luxury property sales and their ability to meet strict standards of excellence.”

Atlantic Seaboard and City Bowl market makes a strong bounce-back

Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl, said the market looks set to end on around R5.6 billion, the highest sales since the 2017/8 peak years.

There has been massive interest and purchasing power in the luxury housing markets of Fresnaye, Bantry Bay and Camps Bay. Camps Bay in particular has had a massive year with sales 40% higher than last year and almost 50% up on 2018.

The R10 million to R20 million-plus price bands have enjoyed a boom year, said Seeff. On the Atlantic Seaboard alone, over R1.3 billion in sales were concluded above the R20 million price mark at an average price of R35 million, the highest since 2017. There has also been a handful of high value above R20 million in the City Bowl.

The Waterfront Marina has been one of the most popular sectional title markets with sales heading towards the R400 million mark, the highest in three years with Seeff concluding the two highest prices of R45 million and R55 million, said Seeff.

Levin said that with the pandemic showing no signs of leaving us just yet, people will continue reviewing their living arrangements with trends such as working from home and the need for more space dominating the marketplace.

“This will continue to support luxury markets such as the Atlantic Seaboard and City Bowl and he expects the market strength to continue into 2022.”

More overseas buyers and SA expats have invested this year

The Seeff Group said it has seen a high volume of international buyers. Given the excellent infrastructure and technology, it is easy to now work from anywhere. Seeff said that with the Covid-pandemic, foreign visitors and SA expats are spending longer periods in the country and more are opting to invest in second homes, especially in coastal locations.

Sales to international buyers for Cape Town as a whole already amount to over R2 billion, 25% up on last year and almost double what it was in 2019. Seeff said it could have been even higher had it not been for the border closures and Red List scenarios since the weak rand makes it a favourable time to invest.

“We have seen buyers from across the globe, from the UK, Germany and other Northern European countries to the USA and UAE along with many more from Africa including Angola, eSwatini, Nigeria, Zimbabwe, Congo, Zambia and Malawi.”

Seeff has made a number of high-value sales to foreign buyers, the most recent being a R55 million sale in Pinnmore at the Waterfront. The Swiss buyer (family of four) initially came to SA for a long holiday and despite Covid, fell in love with Cape Town and proceeded to purchase the property as a holiday home, said Levin.

Read: Buyers into estate living in this Cape Town harbour village are from Joburg and abroad