It’s not all ‘doom and gloom’ for Cape Town’s Atlantic Seaboard

Category Market News

It’s not all ‘doom and gloom’ for Cape Town’s Atlantic Seaboard

03 Sep 2018

After a four-year high of unprecedented growth, South Africa’s strongest market took a knock in 2017 with a significant drop in sales volumes and price growth and, although this year got off to a promising start with renewed investor interest, market activity on the Atlantic Seaboard is still subdued.

This one bedroom, one bathroom apartment in Green Point, Cape Town, offers access to a communal pool and is close to all amenities. It is on the market for R3.795 million - click here to view.

However, Brendan Miller, CEO of Lew Geffen Sotheby’s International Realty on the Atlantic Seaboard, says he remains upbeat.

“Although there have certainly been extenuating influential factors like the water crisis and political instability, and the land expropriation issue certainly hasn’t stimulated the market, we mustn’t forget that the property industry always works in cycles,” he says.

“There are upswings and there are price correction phases, and right now we are in the latter - it was inevitable, after such a growth period. And, as Cape Town’s growth was considerably higher than in other metros, our recovery is bound to be slower.”

Miller says he is optimistic that the market will pick up again in the fourth quarter as it usually does, and says that despite the downturn, it hasn’t been all doom and gloom on the Atlantic Seaboard.

“The year got off to a promising start when an agent in our office brokered a record apartment sale price of R30 million, as well as three sales within 24 hours of listing during the first quarter. During this period we also saw the difference between asking and selling price drop from 5.8% in 2017 to 3.5%,” says Miller.