Cape Town's fastest growing luxury suburbs are in the City Bowl
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Cape Town already has nine of the country's top ten suburbs with the highest average prices, mostly on the Atlantic Seaboard, but the fastest growing luxury suburbs are in the City Bowl.
So says Ross Levin, managing director of Seeff Atlantic Seaboard and City Bowl, pointing out the suburbs showing good growth are Higgovale, Oranjezicht and Tamboerskloof.
Located against the lower slopes of Table Mountain, these City Bowl suburbs enjoy the same fabulous location as the Atlantic Seaboard, but offer quieter neighbourhoods ideal for families with bigger plots and spacious homes, he says. Residents are mere minutes from the beaches and amenities of the Atlantic Seaboard, Waterfront and CBD and there are excellent schools.
Location and convenience are two big drivers of the growth in luxury buyers, says Mr Levin. Over the last ten years, buyers have bought up many of the older properties and upgraded, remodelled and even completely rebuilt many of the homes. Consequently, you can find a mix of classic homes as well as ultra-modern villas, often with spectacular views over the city and harbour.
City Bowl property values have consequently increased notably over the last ten years achieving a phenomenal growth rate of 23.5% year-on-year up to 2016, demonstrating that these inner-city suburbs have become a strong investment ground for high-net-worth individuals, he says further.
Although these three suburbs - Higgovale, Oranjezicht and Tamboerskloof - are small, they account for almost 70% of the value of all houses sold in the City Bowl over the last five years, generating some R3.2 billion in value and around R560 million last year despite the subdued conditions.
The number of properties sold above R10 million has risen considerably as the price ceiling has lifted and homes can now easily breach the R15 million to R20 million price range. Higgovale, for example, now boasts a remarkable average freehold selling price of R20.8 million, about 91% up in five years and high-end houses are now priced up to R50 million to R100 million.
Oranjezicht's average price has increased by 41% over five years and now stands at just under R11 million. High- end houses in both Oranjezicht and Tamboerskloof can now easily range to R40 million and more.
Aside from local buyers, these suburbs have been popular with the wealthy from Gauteng and KZN who have paid upwards of R20 million to as much as R39 million, much more than what they would have paid in either Gauteng or KZN. The area remains in demand with European buyers, especially from Germany as there is a German School in Tamboerskloof.
Much of the rise of these suburbs can be attributed to the high prices on the Atlantic Seaboard, which has seen buyers turn to the City Bowl where they can find the same lifestyle and stunning homes, but still at lower price points compared to Clifton, Camps Bay, Bantry Bay and Fresnaye, for example. The result has been that even surrounding areas such as Vredehoek, Gardens, the CBD and De Waterkant are now all classified as high-demand areas, he says.
Levin reckons that these are probably some of the best suburbs to invest in and for the astute buyer, there is definitely good opportunities in the market. A new luxury security estate, a first of its kind for the City Bowl is also on the cards. It will be located on the slopes of Lion's Head and features architectural designs by Stefan Antoni.
Author: Gina Meintjes
