Cape Town’s property market has long been one of South Africa’s most desirable, but increasingly, it’s becoming one of its least affordable. According to Frans Stander, a Cape Town property partner and practitioner at Lew Geffen Sotheby’s, rising prices in the metro are pushing buyers beyond the city limits and into smaller Western Cape towns.
Places like Tulbagh, Barrydale, Paternoster, Bonnievale, and Kleinmond are no longer just weekend getaways, they’re becoming serious lifestyle investment hotspots. This shift is driven by a growing number of middle-class buyers who are re-considering Gauteng, drawn by lower property prices, more accessible rentals, and a realistic entry point for first-time buyers.
Is Cape Town Still Affordable?
The affordability conversation is no longer just about where in Cape Town, it’s about whether Cape Town still makes financial sense at all. Regan van As, a commercial real estate professional, notes that history will repeat itself, as once upon a time, Camps Bay was a small coastal village. He adds that the Garden Route has already exploded, with George set to become a massive player, and the West Coast following suit, showing rapid growth.
Functioning municipalities, quality of life, price arbitrage, and safety will drive semigration to the Western Cape, but Cape Town is no longer for the middle-class family looking for value at a fair price. Finella Botes, the high-value property consultant at Seeff Atlantic Seaboard, says that prices in this market aren’t being set by agents, but by what buyers are willing to pay.
What’s Driving the Market?
Botes notes that the Atlantic Seaboard has always been a premium market, and that has not suddenly changed. What has changed is how selective the market has become. Buyers are now very specific about what they want, and if the price isn’t justified, they simply won’t buy. As the South African National Census shows, the country’s population is growing, and people are looking for affordable housing options.
Here are some key factors driving the Cape Town property market:
- Low interest rates
- Government incentives for first-time buyers
- Infrastructure development in surrounding towns
- Desirability of the Western Cape lifestyle
As the market continues to shift, it’s clear that Cape Town is becoming a premium lifestyle market, rather than a broadly accessible one. For those looking for affordable options, it may be time to consider other areas, such as the smaller towns in the Western Cape.
