Home buyers and property investors may want to check out Blouberg‚ Milnerton and Melkbos which are currently “hot” for house-price returns; as deeds data research shows, these Cape Town areas are showing good growth.
John Loos‚ the FNB Bank household and property sector strategist‚ noted: “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 Cape Town”.
While the national average estimate is that first-time home buyers amounted to 21% of total home buyers in the first half of 2017‚ Cape Town’s estimate was a far lower 6.64% — having deteriorated steadily from an average of 18.4% in 2015.
“We believe that this extremely low estimate is reflective of a significant affordability deterioration in recent years in the City of Cape Town Metro.”
Overall‚ though‚ the Atlantic Seaboard region remained the one with the strongest house-price growth in the second quarter of 2017 at 29.9% year on year. This was followed by 21% in the City Bowl.
This comes as slowing growth has taken place in seven of the 12 regions of the city in the second quarter of 2017‚ the latest FNB Property Barometer report shows.
“We believe that this extremely low estimate is reflective of a significant affordability deterioration in recent years in the City of Cape Town Metro.”
Overall‚ though‚ the Atlantic Seaboard region remained the one with the strongest house-price growth in the second quarter of 2017 at 29.9% year on year. This was followed by 21% in the City Bowl.
Commenting on the Western Seaboard‚ he said it was “a relatively affordable region for middle-to higher-income households looking for the next best thing from a lifestyle and commuter location”.
However, Cape Town maintains its prime status‚ overall. Said Loos: “Although the city has seen some mild slowing in average house-price growth over the past five quarters‚ at 13.8% year on year this market remains very strong.”