German investors are the highest property bidders in the Western Cape, according to property experts.
Property experts and real estate agents have largely agreed with a property report that found there was a general increase in property and real estate in the Western Cape.
The South African Real Estate Investment Review and Outlook report for 2022/23, which was released this month ,said a key trend emerged from the pandemic that benefited the commercial real estate (CRE) market.
“Debt became more affordable, as prime lending rates were lowered initially to encourage economic growth and a faster recovery. Investors started to take the opportunity to acquire investment property at discounted rate,” the report said.
The report also found that the Western Cape was the second largest investment contributor in property investment in South Africa.
Jen Wilkins, Ronak Spamer and Matt Mercer from Keller Williams Explore Atlantic said there had been an increase in property sales in the Western Cape.
“There has been quite a significant increase in property sales in the Western Cape. Quite often, we are selling properties without advertising or officially going to market, as we have direct buyers, and we usually achieve multiple offers on these properties.
“German buyers are still very attracted to Cape Town. We have seen several Belgian, Dutch and French buyers, most of whom national airlines have direct flights to Cape Town. In our opinion, the Atlantic Seaboard always does very well, particularly Camps Bay and surrounds with a high ROI, and at the Hout Bay is being discovered for more spacious properties at a more reasonable price point.
“Constantia and Cape Town City Bowl for excellent investment opportunities and new developments and Blouberg being very popular with local semigrants, too,” they said.
Leon Adams, building manager at Senator Park in Cape Town CBD, said that there was an increase in investors investing in building units.
“We recently had an international investor buy four units of apartments. We are seeing more apartments being bought and sold. Generally, buildings and warehouses are being turned into student accommodations, too,” he said.
Susan Watts,a broker owner at RE/MAX Living, said the market is certainly tightening, given the continued rise in the interest rate.
“The onset of winter and the load shedding that affects all South Africans nationwide. These factors are most certainly affecting affordability, which has a direct impact on our property market.
“In the Western Cape, we have been somewhat sheltered due to our demand as a holiday destination, which has also influenced the number of investors buying property on the Atlantic Seaboard and in the City Bowl.
“Most foreign buyers are from Europe, with the largest number of those being from Germany. In addition we have significant numbers buying from America and the UK, she said.
The report additionally found that there was a decline in the retail and office sector in the Western Cape.