Cape Town Housing Market Report - 2020

With support from the Cities Support Programme of National Treasury, the Citymark project undertakes analysis of South Africa’s residential property markets, with a particular focus on the lower end of the market. Utilising title deeds data obtained from Lightstone Pty Ltd, the analysis separates the market into five segments, allowing the careful examination of the differentiated performance of the entry level (under R300 000), affordable (R300 000 – R600 000), conventional (R600 000 – R900 000), high-end (R900 000 – R1.2m) and luxury (over R1.2m) markets.

As part of our series of reports on the eight metros in South Africa, this report on the residential property market in Cape Town, Western Cape, provides a detailed analysis of government-sponsored properties, freehold and sectional title homes, new and resale transactions, lending, and first-time homeowners. Given the COVID-19 pandemic, the report includes a high-level analysis of the impact of COVID-19 on the property market.

Cape Town’s residential property market was valued at R1.161 billion in 2019. The market was less affordable, with only 37% of all residential properties valued below R600 000. 87% of properties valued under R300 000 and 41% in the affordable segment (R300 000 – R600 000) were government-subsidised. In 2019, the number of new transactions increased by 2.7%. As a result of COVID-19, new transactions are anticipated to drop as 2020 ensues. In the resale market, activity has been declining steadily since 2014. In both the new and resale markets, banks issued more bonds at the upper end of the market.

CAHF’s work in South Africa is supported by:

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