The Western Cape house market continues to outperform, with building plans passed in the first half of this year – which provides an indication of future residential building activity – showing the province claimed the largest share at 37.1 percent of the national total.
Gauteng was second with 28 percent and KwaZulu-Natal with 15.1 percent.
The Pam Golding Residential Property Index showed also that the province was the strongest major regional market with house price inflation of +5.9 percent in July 2022, and 6.32 percent for the year to date.
While growth in house prices in the other major regions was losing momentum, in KwaZulu-Natal house price inflation appeared stable at +5.3 percent for July and for the year to date; while in Gauteng, house price inflation slowed to +3.1 percent for July and 3.6 percent for the year to date.
Pam Golding chief executive Dr Andrew Golding said in a statement that Nelson Mandela Bay was the top performing coastal metro market with price growth accelerating and reaching +9.2 percent in April 2022 – a level last recorded in late 2007.
Among the smaller regional markets, house prices in the Northern Cape continue to soar, reaching +9.6 percent in April, while growth in house prices in the Eastern Cape accelerated to +7.9 percent in the same month, he said.
Despite the recent interest rate hikes, according to mortgage origination firm ooba, the percentage of mortgages extended to first-time buyers rose 49.9 percent in July, which was just under the 50 percent level seen prior to the temporary post-pandemic boom in first-time buyer activity.
Seeff Property Group chairman Sammuel Seeff said in a statement that the Cape Town residential market was benefiting from a shift to the suburbs, after initially struggling in 2020 and lagging behind other metros, and then bouncing back to record highs in 2021.
“Our agents are seeing a shortage of properties to sell and rent out in many suburban areas across the city,” he said.
The vast majority of sales across the Cape Metro over the past year fell below R2 million with some 40 percent below R1.5m.
Helga Clemo, a licensee for Seeff Century City, said 2021 was an excellent year and “despite this year starting off slow, demand is now strong with stock-levels steadily declining.”
Golding said the Western Cape was widely regarded to have benefited most from the surge in demand for larger, lifestyle properties triggered by the pandemic and lockdowns.
Seeff licensee Ross Levin said the strong performance of the Atlantic Seaboard and City Bowl luxury property markets seen in 2021 had escalated further this year.
Sales for the first seven months amounted to over R5 billion, “well ahead of what we have seen in recent years and for the first time in years”.
“We are now seeing property stock in short supply, even in the high-end areas such as Fresnaye, Bantry Bay and Camps Bay,” he said.
BUSINESS REPORT