June 14 2024 15:40
Cape Town’s Constantia has always been one of the most popular and aspirant suburbs in South Africa, attracting both local and foreign buyers. During the past few years, it has captured the attention of upcountry high-net-worth investors and also foreign investors looking to diversify their portfolios away from other parts of the world. This has resulted in a leap in luxury home sales with the number of trophy homes more than doubling since 2018.
According to Propstats data, in 2018, only seven (9.72%) of 72 houses sold were priced above R20m and this year, by the end of May, 31 houses had changed hands with 11 (35.48%) properties being in the R20m plus price band.
The Cape Town property market remains attractive and competitively priced by international standards and, despite South Africa’s challenges, these buyers are happy to spend upwards of R25m and, with property values on the rise, Constantia represents a sound investment, according to Lew Geffen Sothebys.
Beau Glen, Constantia
The spike in demand has spurred development in the luxury sector with the latest offering a three villa estate called Beau Glen, in Upper Constantia conceptualised by South African architectural brand, SAOTA. Perched high on a hillside with panoramic views, and prices starting at R46 995 000, these are impressive properties.
According to Rouvaun McKirby and Joanna Thomas, Area Specialists in Upper Constantia for Lew Geffen Sotheby’s International Realty, there has been a notable uptick in high-end sales during the past three years.
“There has been a lot more interest from wealthy upcountry buyers as well as UK and European investors, mainly high-net-worth and ultra-high-net-worth individuals, and the R20m plus price band has been very active, with a few of these sales exceeding R40m. Although Constantia has always been popular with swallows, historically, high-net-worth individuals, particularly those from Europe, favoured investing in luxury properties within their own continent and renowned cities like London, Paris, and Monaco have held a timeless appeal,” McKirby said.
This is corroborated by Propstats data which shows that in 2018, of the 72 houses sold in Upper Constantia, only seven (9.72%) were priced above R20m. In 2021, when lockdown ended and pent-up demand was driving the market, house sales jumped to 102 with 13 of these homes being for more than R20m.
alistair@propertyflash.co.za.
