Semigration is fueling the rise in demand in Cape Town’s southern suburbs.
Since the revival of semigration in 2021, there has been a surge in market activity in the Southern Suburbs, with the time properties spend on the market dropping and a drop in asking and selling prices.
Agencies have been inundated by enquiries for both sales and rental properties as people looking to buy will often rent first whilst they search for a home to purchase, and well-priced family homes are often snapped up as soon as they’re listed.
Due to their proximity to good schools and other major amenities, three popular areas are Newlands, Rondebosch, and Claremont.
In 2021, Newlands houses were selling at an average price of R6.5 million, an asking price after 176 days on the market. In November 2023, the average selling price was R8.15 million, 7.5% below the asking price, with listing days decreasing to 76. The situation is similar in Rondebosch and Claremont.
“Stock has become an issue, though,” was the agency's comment, “and there are few houses available at the current average selling prices and almost none at the entry-level”
“The rental market is equally competitive throughout the whole Southern Suburbs region and, with the current stock shortages, we are finding that free-standing houses in the broad price range of R15 000 to R55 000 do not stay on the market for long.”
“Properties have barely been listed, and the enquiries literally pour in, with some properties even being taken without viewings. Generally, these are potential tenants from Gauteng or KZN or abroad.”
