A picturesque view of Cape Town.
The recent publication by the London headquartered Knight Frank Property Group of the 2014 price rises in the areas favoured by global wealthy buyers, has placed Cape Town 8th in the line-up of 30 cities with a 9.2 percent increase in prices in 2014.
Bill Rawson, chairman of the Rawson Property Group, says the report confirms what many Cape Town estate agents have been saying for a decade or more, and that is that rich people should be seeing Cape Town as a prime investment venue.
“These people generally choose to have 15 to 30 percent of their assets in residential property and tend to invest worldwide, but so far have shown too little interest in Cape Town.
“Knight Frank have shown us that they often have as many as six properties worldwide, many of which are in popular destinations like ski resorts, wine estates, equestrian friendly areas and sailing, boating, swimming and diving regions on the coast or at inland waters. Although Cape Town’s 2014 residential property price increases are unlikely to be as high this year, significant value rises probably in the region of 8 percent should be achieved by the year end.”
He says the price performance of Cape Town property over the last decade or more has been less prone to fluctuations and in general better than those of other South African cities. Johannesburg, for example, in 2014 achieved an 8.7 percent rise and in Durban, the average increase was 6.8 percent – despite far higher rises in certain high density areas such as Berea and the Bluff.
“According to Knight Frank, Cape Town’s property performance in 2014 put it ahead of many international cities recognised as being safe havens for property investors. Among those with less impressive price rise performances than Cape Town were Los Angeles, Sydney, Washington DC, Tokyo and Seoul.
“What should make Cape Town residential property even more appealing to foreign buyers are that, first, the environment is particularly beautiful with a 1 000m mountain and beaches within 10-15 minutes of at least half the population – and, more important the superb value for money obtainable here,” says Rawson
“The Knight Frank report says that US $1 million will buy 21 m² of floor space in Central London and 17 m² in Monaco. In Cape Town, the same investment would buy 204 m² in prestigious property areas such as Constantia, Bishopscourt or Fresnaye. As the values in SA are coming off such a low base, the chances of price appreciation are excellent and it is simply illogical that foreign buyers for political or other reasons are still hesitant to become fully involved here. However, I hope the situation will change radically in the coming year – and there are signs that this is already happening along with big rises in tourists.”
Posted in Western Cape Residential News
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