PROPERTY MARKET: ANNUAL REVIEW 2022

PROPERTY MARKET: ANNUAL REVIEW 2022

Category Property Investment

In looking back at 2022, the aim of this review is to look at broad trends and patterns in the sectional title property market in the six residential property nodes. This review excludes sectional title offices, parking bays (sold independently of apartments) and retail spaces. All data is from CMA Info (as at 30th January 2023), which in turn, is data drawn from the Cape Town Deeds Office. In order to gain some context, this review compares like-for-like CMA Info data for 2021 and 2022 of properties sold up to R15m (with the exception of the V&A Waterfront, where we look at sales up to R20m), that helps in understanding where we might be at in the property cycle. CMA Info data reflects actual property transfers in the Deeds Office, and therefore most sales agreed and signed in the last quarter of 2022 will register and reflect in the Deeds Office in the first quarter of 2023. That data will form the basis of my next quarterly review, due out in early April.

Analysis and commentary of the City Centre residential market is relatively more in depth as it accounts for some 60% of the total number of sales over the six property nodes. Detailed data on specific residential complexes is available on request for owners that would like to understand the values of the sectional title schemes they are invested in. As always, there are a range of opinions in the marketplace on where the property market is at, or may be heading. This review reflects my views as a specialist in residential sectional title property sales based on the data and my knowledge of the market.

Very best wishes for 2023!

Richard

Cape Town City Centre

The City Centre residential property market for 2022 was broadly similar to 2021 based on the key indicators. There is very little variance between the two years, based on data available, suggesting a plateau in the bottom of the property cycle. The market is no longer heading downwards, as it was between 2019 and 2021, but is steady and in recovery. Properties selling under R2m continue to represent two thirds of the City Centre residential property market, reflecting the appetite of both investors and first time buyers for the city centre. As I write, the City Centre is well and truly alive once more, with building cranes hard at work in every direction, and overseas visitor  numbers back at 2019 levels. There is a real buzz in the city centre, and a confidence reflected in the significant investment in new mixed use buildings.

De Waterkant

De Waterkant broadly saw a similar stabilising in the market to the City Centre in 2022. Whilst the average R/m2 dropped slightly compared with 2021, the average selling price increased and there was a shift in the balance between properties selling under R3m and those selling over R3m, with more movement in the over R3m segment of the market. This would suggest a greater confidence and interest from buyers looking at De Waterkant as a residential area.

The Foreshore

The Foreshore is the smallest of the six residential nodes, with significantly less residential stock. 2022 saw an increase in the number of sales, along with an upturn in average R/m2 values. Sales of properties under R3m increased compared with 2021, representing two thirds of the properties selling in the Foreshore precinct. This would indicate maybe more investors and first time buyers in the marketplace, rather than those buying larger apartments as homes. The Foreshore remains popular for short stay letting, given its proximity to the V&A Waterfront. At present the new commercial office/mixed use development between the Foreshore residential and Silo Precinct is making good progress, and will undoubtedly improve the flow and connectivity of this precinct to the Waterfront.

V&A Waterfront

Some of the key indicators for the V&A Waterfront were down in 2022, based on the data available. However, the average R/m2 was up, and sales of properties over the R10m mark increased as a percentage of overall sales. The V&A Waterfront remains one of the most niche  property markets in Cape Town, with relatively low turnover of the available residential stock.

Woodstock

The number of sales in Woodstock in 2022 was over 50% down on those of 2021, based on the available data. It remains to be seen if there was an increase in sales in the last quarter of 2022. However, the good news is that those properties that did sell in 2022 were selling at higher average values and higher average R/m2. Additionally, the number of sales taking place in the R2m and over segment of the market almost doubled.

Zonnebloem

Zonnebloem, like its neighbour, saw a decrease in the overall number of residential sectional title apartments selling in 2022. However, average selling prices for those properties that did sell, increased significantly and there were more properties selling in the over R2m segment of the market.

Here to assist.......

2023 will mark twenty years since I first became an Estate Agent in Cape Town. I have been selling residential property for nearly fifteen of those twenty years, and bring a wealth of experience and knowledge to my work with clients. I'm here to assist, advise and provide the very best professional service to my clients. Please do not hesitate to contact me at anytime to discuss your property requirements, including a free, no-obligation valuation. Or, if your property is already on the market, it's current pricing and advice on selling at the best price. I am available by appointment seven days a week between 8am and 8pm to assist with all your property requirements. I can be reached via Whatsapp on +27 (0) 81 063 1871, or email at: richard@kinesisproperty.co.za

Author: Richard Boxford