KNIGHT Frank, a global independently owned property consulting company, has published a report placing Cape Town third globally in terms of annual price growth.
The company’s Prime Global Cities Index report shows that Cape Town was a top performer for the second quarter of 2016, with the city’s annual price growth reaching double figures in the year to June 2016.
"This puts Cape Town in third place for prime price performance by city with Shanghai in second and Vancouver in first. The average annual change per world region was put at 9% for Africa, just 1% shy of North America’s 10% and 2% less than Australasia’s 11%," Knight Frank said in a statement.
"Previous price changes for Cape Town were significantly less; December 2015 to June 2016 showed a 5.6% change and March 2016 to June 2016 a 3% change. This, when compared with the 16.1% change in the 12 months from June 2015 to June 2016, can only mean extremely positive things for the local industry’s growth," the company said.
Many prime cities were seen to be curbing foreign investment with cooling measures. London was a prime example of this, with the city’s measures including higher taxes and rate hikes especially on the buy-to-let market, which had become a growing market for the wealthy who had cash available to purchase property which was ideal for the professional rental market or holiday rentals through the likes of AirBnB, said Anne Porter, the estate agency which owns Knight Frank.
Richard Hardie, Anne Porter manager for the Atlantic seaboard, said the market in Cape Town was buoyant with domestic and international interest.
"Cape Town is benefiting from a number of factors, including those commuting to Johannesburg for business but residing in Cape Town, a growing trend; a university providing little supply of 6680 residential placements with 27,000 students; an increasingly progressive central business district with increasing residential units and lifestyle options to match including restaurants, bars, art galleries and gyms; international buyers taking advantage of the weaker rand in the latter part of 2015, early 2016; as well as the weather and lifestyle that Cape Town provides."
Hospitality Property Fund (HPF), a specialised real estate investment trust and owner of hotels, this week reported strong numbers, saying that the Western Cape market had been a top performer.
"HPF’s rental income growth was bolstered by its well-located hotel properties in the Western Cape that continued to appeal to domestic and international travellers, with overall rental income growth of 31.4% compared to the prior year," the company said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.