Want to know where you can still find value in Cape Town’s property market? These are the suburbs with the lowest asking prices.
In a struggling South African property market, Cape Town has been a rare success story with house price growth comfortably outstripping that of other major cities.
The city’s excellent performance has been driven by a range of factors, from the semigration of upcountry buyers, better governance, a booming tourism market and employment prospects in tech, advertising, design and other creative industries.
But rampant price growth has a downside – numerous reports have indicated that buyers, particularly first-time buyers, are struggling to get on the property ladder due to increasingly unaffordable property prices. FNB’s Property Sector Strategist, John Loos, notes, “The evidence of mounting Cape Town affordability challenges continues to come from our FNB Estate Agent Survey which‚ for the first two quarters of 2017‚ showed a very low estimate of first time buyer levels in the City of Cape Town".
Cape Town’s estimate of first time home buyers in the first half of 2017 was just 6.64%, compared to a national average of 21%.
"This affordability challenge could conceivably contribute to some strengthening in more affordable sub-regions with the metro‚" said Loos.
Private Property data shows that large numbers of property shoppers are searching the more affordable suburbs for homes.
Which suburbs are the most affordable in terms of the lowest asking prices on PrivateProperty.co.za?
20 most affordable suburbs in Cape Town
Cape Flats
Suburbs: Khayelitsha, Mitchells Plain, Blue Downs
Although the Cape Flats faces some socio-economic challenges, the area is popular with lower income first time buyers who want to get on the property ladder. With much of the property priced below the transfer duty threshold of R900 000, buyers need to have less cash in hand in order to buy property here. Increase in demand for property in the Cape Flats has seem house price growth (12.5% in Q2 2017) outperform many other areas in recent years. The Cape Flats has a CBD with shopping centres, transport infrastructure that includes taxis, busses, trains and the recently extended MyCiti service. There are also many schools that serve the area.
Median Property Prices in Khayelitsha
House: R375 000
Complex: R524 000
Median Property Prices in Mitchells Plain
House: R590 000
Complex: R575 100
Median Property Prices in Blue Downs
House: R629 000
Flat: R430 000
Complex: R619 000
Buh-Rein
This massive new development in Tygerberg is popular with first time buyers and investors. A selection of property from apartments, to freestanding homes and townhouses caters to a range of buyers and budgets. Good security, a selection of lifestyle amenities and a convenient location close to major roads increases the attraction of the suburb.
Median Property Prices in Buh-Rein
House: R1 699 900
Flat: R859 900
Complex: R1 699 900
Kuilsriver
Suburbs: Eersterivier, Kuilsriver
Property prices in most of Cape Town’s northern suburbs have increased massively, putting them out of reach of first time buyers. Kuilsriver is one of the few remaining areas that offer value for money. The area offers a good selection of property and is close to main roads to Cape Town and Stellenbosch, making it convenient for commuters. A number of excellent schools in Kuils River and nearby Bellville, Brackenfell and Stellenbosch adds to the appeal for young families.
Median Property Prices in Eersterivier
House: R675 000
Complex: R815 000
Median Property Prices in Kuilsriver
House: R1 390 000
Flat: R579 000
Complex: R960 000
Kraaifontein
Suburbs: Kraaifontein Central, Langeberg Ridge
With a good selection of reasonably-priced property, Kraaifontein, is seen as an area where middle class Capetonians can still afford to buy a home. Although the area is still affordable, demand has seen prices grow at around 13% per annum in recent years. Young buyers in particular are attracted to the area due to the excellent schools in the area, shopping centres, medical facilities and easy access to other parts of Cape Town. investors have responded to demand in the area by snapping up plots in areas like Langeberg Ridge and Langeberg Heights and developing them.
Median Property Prices in Kraaifontein Central
House: R1 199 000
Flat: R665 000
Complex: R1 005 000
Median Property Prices in Langeberg Ridge
House: R1 950 000
Flat: R1 493 036
Complex: R2 372 000
Goodwood
Goodwood has been a firm favourite with middle-class Capetonians for a number of years now. A good selection of property at different prices attracts a diverse mix of buyers – from first time buyers to retirees. The area enjoys a central location, a wide range of amenities and excellent transport links. Consistent demand has ensured excellent price growth for those who have bought property in the area.
Median Property Prices in Goodwood
House: R1 787 500
Flat: R649 997
Complex: R1 250 000
Tableview and Blouberg
Suburbs: Burgundy Estate, Parklands, Tableview, Sunningdale
Property on the Western Seaboard has grown in popularity as buyers have been squeezed out of the Southern Suburbs, Atlantic Seaboard and the City Bowl. It remains a relatively affordable region for middle to higher income buyers. Outstanding beaches, epic views and an appealing outdoor lifestyle are just some of the reasons for this area’s popularity.
Newer suburbs like Sunningdale and Parklands have been developed to cater for the increased demand in the area. Residents have a choice of public and private schools, medical facilities and a selection of retail offering, including the Bayside Mall.
Burgundy Estate is one of the affordable developments in the area. It offers modern architecture, a good mix of homes and numerous sporting facilities.
Median Property Prices in Burgundy Estate
House: R2 600 000
Flat: R1 100 000
Complex: R1 950 000
Median Property Prices in Parklands
House: R1 799 900
Flat: R767 500
Complex: R1 175 000
Median Property Prices in Tableview
House: R2 199 500
Flat: R2 300 000
Complex: R1 370 000
Median Property Prices in Sunningdale
House: R2 580 000
Complex: R2 112 000
Brackenfell
Suburbs: Brackenfell Central, Protea Heights
This area still offers great value for money, particularly for young families and first-time buyers. Its location in the Northern Suburbs means the residents have a choice of excellent schools nearby. International and local industries located in the area offer good employment prospects, while Bracken Nature Reserve and numerous sports clubs cater for active residents.
Median Property Prices in Brackenfell Central
House: R1 915 200
Flat: R875 000
Complex: R1 395 000
Median Property Prices in Protea Heights
House: R2 077 465
Flat: R920 000
Complex: R1 275 000
Durbanville
Suburb: Durbanville Central
This area is favoured by young families who enjoy living within close proximity of the Boland wineland regions. Durbanville Central is known to offer first time property buyers with a number of choices including some older, more established homes, as well as apartments and townhouses. Parks, schools, shopping centres and businesses in the area ensure a well-rounded lifestyle for those who make this area their home.
Median Property Prices in Durbanville Central
House: R3 639 500
Flat: R1 399 000
Complex: R2 562 500
Southern Suburbs
Suburbs: Wynberg, Plumstead
Property buyers who are looking for value in the Southern Suburbs are increasingly turning to areas like Wynberg and Plumstead, that they may not have previously considered.
Young professionals with families are now buying property in Wynberg due to the good schools in the areas. This new demand is stimulating new development in the suburb which has an upside for property values. Plumstead is another suburb that offers buyers excellent value for money. This small established suburb is tree-lined and neat. Young professionals are buying older homes and upgrading and modernising them, which is contributing to the upliftment of the area.
Median Property Prices in Plumstead
Houses: R2 600 000
Flats: R1 360 000
Complexes: R1 495 000
Median Property Prices in Wynberg
Houses: R2 972 500
Flats: R1 595 000
Complex: R1 495 000
False Bay
Suburb: Fish Hoek
False Bay continues to be a popular choice with Western Cape property buyers due to the attractive coastal lifestyle and affordability. Houses and apartments in Fish Hoek are still affordable compared to other Cape Town suburbs but increased demand means prices are rising. Buyers love the convenience of Fish Hoek – everything from beaches, to shops and schools are within walking distance, and it has excellent transport links to other parts of the city.
Median Property Prices in Fish Hoek
Houses: R2 575 000
Flats: R1 790 000
Complex: R1 850 000
City Bowl
Suburb: Woodstock
Property in most suburbs close to the CBD are now out of reach for the average middle-income buyer. Woodstock is one of the few areas where there is still value to be found for buyers, and the area is undergoing a revival of sorts with trendy retail stores, restaurants and nightspots opening in the area.. The upper parts of Woodstock are popular with young professionals who want easy access to the CBD, the N2 and public transport. Lower Woodstock is less popular but buyers are increasingly willing to buy older properties and renovate them, in order to get a foothold in the popular City Bowl property market.
Median Property Prices in Woodstock
House: R2 595 000
Flat: R1 947 500
Complex: R2 145 000
Background
This report is compiled using search activity and median asking prices of residential properties listings on Private Property’s website in October 2017. To maintain consistency over time and assist comparison between areas, data is only presented for areas with 100 or more listed properties and grouped by the following common attributes of residential properties in South Africa:
• type (houses, townhouses or flats)
Some effort is also made to exclude outliers from the analysis. A feature of Private Property’s Report is that it provides insights based on current asking prices rather than the eventual sale prices of property transactions. This is an important distinction, as the two measures provide slightly different insights into the property market.
Private Property’s median asking price data provides a view of all properties being offered for sale on its website. This has the advantage of including insight into many more properties than are eventually sold in each quarter. Although asking prices are usually slightly higher than sale prices, they have an advantage of being available to analyse well in advance of the eventual transactions. Care must be taken when interpreting prices of listings on Private Property’s website, as it differs from some analysis of sale prices that track individual properties as they are offered for resale over time.
