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Foreign buyers snap up property in this conservation village in Cape Town

The Western Cape remains the top destination for foreign property buyers in South Africa, with demand particularly strong in the luxury segment.

According to property data released by Lightstone in May 2025, foreign buyers accounted for 40% of all residential transactions over R10 million in 2024.

This trend is most evident in the small coastal village of Scarborough, located on the Cape Peninsula near the Cape Point Nature Reserve. In 2024, over half of all property sales in Scarborough were to foreign buyers—the highest proportion in the country.

The area has seen dramatic price growth, with average property values rising from R2.3 million in 2016 to R7.85 million in 2025 – a 241% increase, according to data from Property24 and the Deeds Office.

Scarborough’s popularity is not an outlier. Lightstone data shows that all 22 of the top suburbs with the highest proportion of foreign buyers are located in the Western Cape. Following Scarborough are Chapmans Peak, Bakoven, De Waterkant, and Cape Town Central.

Lightstone’s analysis – focused on residential properties purchased by individual buyers with single-title deeds – also tracks whether foreign buyers hold South African residency.

Since 2019, the share of buyers without residency has steadily increased, overtaking those with residency.

In 2024, non-resident foreign buyers made up 3.7% of total transactions, up from 2.9% in 2019. Meanwhile, the share of foreign buyers with residency declined from 3.8% to 3.3% over the same period.

Non-resident foreigners also tend to spend more. In 2024, they paid an average of just over R2.7 million per property – more than double the R1.2 million average paid by local buyers.

Across all high-value property brackets, the Western Cape leads. Foreign buyers accounted for just over 40% of transactions above R10 million, about 25% in the R5 million–R10 million range, and roughly 15% between R3 million and R5 million.

The data clearly shows: the higher the property value, the more likely it is to be purchased by a foreigner – most often in the Western Cape.

Housing market shift for South Africa’s Garden of Eden

While freestanding homes still dominate the residential landscape across Garden Route towns, demand for apartments is growing steadily, with new developments finally entering the market, says Gail Rimbault, licensee for Seeff Knysna.

Sectional title complexes offer more accessible price points for buyers and investors, she said.

“They’re particularly attractive for their lock-up-and-go convenience and low maintenance, usually managed by a Body Corporate. This makes them ideal for holiday homes or for buyers downsizing to the coast.

Rimbault noted that while retirees and holiday home buyers continue to make up a significant portion of the market, rental demand – both long-term and short-term – is also rising sharply.

Many investors are purchasing holiday units with the intent of generating rental income when not in use, leveraging the region’s strong seasonal tourism.

The Garden Route remains one of South Africa’s top holiday destinations, drawing heavy foot traffic over weekends, school holidays, and especially during the summer season.

Despite this, sectional title properties still make up a small portion of overall housing stock in most Garden Route towns.

According to Lightstone data, Mossel Bay and Plettenberg Bay lead with 15% each, followed by Knysna at 10% and George at just 6%.

Prices for apartments typically start above R2 million, with luxury units commanding even higher premiums.

Sectional Title Property Snapshot – Garden Route

TownST Stock %Avg. ST PriceAvg. Luxury ST Price
Mossel Bay15%R2 millionR3.6m – R3.8m
Plettenberg Bay15%R2.9 millionR5 million
Knysna10%R1.5m – R2mR4 million
George6%R1.6 millionR3.9 million

Source: Seeff / Lightstone

Although sectional title accounts for just 10% of Knysna’s housing stock, it made up around 20% of total sales in the past year-highlighting the high demand for compact, low-maintenance units in the town.

Apartments are increasingly popular for both primary living and holiday rentals, including Airbnb.

Developers are responding to this trend with new offerings like the Seahorse development in Knysna, which Rimbault says is a welcome addition to the market.

The Seahorse offers 35 modern units with one or two bedrooms, private braai balconies, secure parking, inverters, and Wi-Fi.

The complex includes a heated swimming pool and sun deck, with prices starting at R1.75 million for one-bedroom units and R2.325 million for two-bedrooms. No transfer duty is payable.

These apartments are drawing interest from a diverse range of buyers—from retirees and downscalers to investors looking for holiday homes or short-term rental income.

Big shift in Cape Town’s property market

More than half of all property sales in most Cape Town suburbs are now sectional title, a trend driven by the city’s sharply rising real estate prices.

Now Africa’s most expensive city for real estate, Cape Town’s housing market has surged in recent years. According to Lightstone data, it is also outperforming Johannesburg in both price and volume of sales. In 2024, Cape Town recorded R81 billion in property sales, up from R74 billion in 2021.

Meanwhile, Johannesburg’s figures declined from R59 billion to just over R47 billion in the same period.

Despite escalating prices, Lew Geffen Sotheby’s International Realty’s Brent Townes believes the sectional title segment still offers value.

These properties—typically apartments or townhouses in shared developments—allow individuals to own a defined section of a building along with a stake in the common property. They’re increasingly popular among first-time buyers, who now account for 40% of purchases in this segment.

Forty percent of sectional title purchasers are first-time buyers looking to get a foot on the ladder of Cape Town’s buoyant property market, said Townes.

First-time buyers now account for 72.71% of the market—up from 71.34% a year ago—indicating growing confidence among new entrants, according to MyProperty Home Loans’ latest data comparing March 2024 to March 2025.

Despite financial pressures from the March Budget, several positive shifts have improved conditions for buyers, including a reduced prime lending rate (from 11.75% to 11%), a higher transfer duty exemption threshold, and zero transfer duty on homes under R1.2 million.

The average first-time buyer purchase price rose slightly to R1,215,522, while the average approved bond amount jumped from R1,029,192 to R1,567,694.

Among the city’s most desirable areas for sectional title are the Southern Suburbs, where proximity to top schools, the University of Cape Town, commercial hubs and green spaces has pushed demand—and prices—higher.

However, for those looking for more accessible pricing or lock-up-and-go convenience, there’s a multitude of sectional title options, especially in Observatory, Salt River, Claremont, Wynberg and Wynberg Upper, Rondebosch and Plumstead, said Townes.

While average property prices in these suburbs sit around R2.25 million, sectional title units can range from R800,000 to R1.3 million.

Thanks to rampant development in recent years, which has seen the number of sectional title properties soar, coupled with rising freehold prices and lifestyle choices, more than 50% of the properties sold are now sectional title with options to suit all budgets and lifestyle needs, said Townes.

Townes also highlighted robust interest from investors—many purchasing for rental income or for their children attending university:

These buyers tend to either buy for their children attending university, for third-party tenants in the rental sector, and also for the purposes of having a diversified investment outside of their current metro where they reside.

He cautioned buyers to prepare for costs beyond the purchase price. While the purchase price is certainly the largest expense, additional costs can quickly add up, and they aren’t always factored in when buyers set their budgets.

For a R2.25 million apartment, additional upfront costs can exceed R200,000, including:

  • Bond registration: R52,603
  • Transfer fees: R97,634
  • Moving expenses: R10,000+
  • Utility deposits: R2,000+
  • Wi-Fi/fibre setup: R1,500–R5,000
  • Insurance: R500–R2,500/month
  • School fees/uniforms: R5,000+

Beyond the purchase price, buyers should budget for at least R200,000 to R250,000 in additional upfront costs, Townes explained.

Monthly levies are another key consideration, especially in complexes offering premium amenities.

R3 million the new sweet spot for upper middle class home buyers

South Africa’s residential property market showed continued signs of recovery in the first quarter of 2025, with the national average purchase price climbing 2.2% year-on-year and 2% quarter-on-quarter to R1,661,519, according to ooba Home Loans.

Properties priced above R3 million accounted for 28% of applications, driven by semigration and a more affluent buyer profile. “These buyers tend to be older and more affluent, contributing to increased activity in the upper market,” said Rhys Dyer, CEO of ooba Home Loans.

Data from Lightstone for the first quarter 2024 showed that the majority of property transactions (71.4%), were below R1.5 million, while tansactions between R1.5 million and R3 million made up 19.7% of the market.

Only 9% of all property transactions were above R3 million, however, generating 36% of the total value of all transactions, equating to over R23.7 billion at an average price of around R5.5 million.

Buoyed by a stable interest rate environment and optimism around further rate cuts and improving economic conditions, home loan application volumes rose by 18%, while the total value of bonds granted jumped 22.3% compared to the same period last year.

Increased demand for home financing also intensified competition among major lenders. This led to a rise in the average approved bond size, up 2.5% for repeat buyers and 6.5% for first-time buyers.

“We’re now comfortably exceeding the R1.6 million mark – with expectations that house prices will continue to rise modestly throughout 2025,” said Dyer.

The average purchase price for first-time buyers climbed 4.5% year-on-year to R1,247,810. Regionally, Tshwane led price growth, with a 10.5% annual increase to R1.79 million, followed by the Free State at 8.8% to R1.15 million. The Western Cape maintained the highest average price at R2.33 million, despite a more modest 3.4% rise.

First-time buyer activity is rebounding, with a 1% year-on-year increase. They accounted for 46.5% of all applications in Q1—a figure supported by interest rate cuts and successive rate holds.

“First-time homebuyers accounted for 46.5% of all applications for the quarter, a promising figure underpinned by a succession of interest rate cuts over a period of six months and subsequent rate holds,” Dyer said.

Competitive lending has helped lower deposit requirements, especially for first-time buyers. However, the average national deposit remains elevated at 15.4%, translating to R255,514.

Among first-time buyers, the average deposit declined 15% year-on-year to R120,366, or 9.6%, just below the recommended 10%.

“Last year, first-time homebuyers placed greater emphasis on saving for deposits. That priority appears to have shifted, likely due to improved consumer affordability and the increasingly favourable lending terms offered by banks,” Dyer said.

Banks are offering increasingly competitive interest rates to attract borrowers. ooba Home Loans secured an average rate of prime minus 0.55% in Q1 2025—a 0.03 percentage point improvement from the previous year.

Approval rates remain strong, with 83.1% of applications nationally being approved.

Investment property demand also climbed in Q1 2025, with such applications comprising 12.9% of total volumes – up 0.5% year-on-year. The Western Cape continues to attract the lion’s share, accounting for 32% of all investment-related applications, up from 30.1% a year ago.

South African property market: Best months to sell and how long it takes

Cape Town continues to show resilience in its property market, with faster sales and closer-to-asking-price sales, while Johannesburg has experienced a slower market, signalling a shift in the regional real estate dynamics, according to Lightstone data.

In the real estate market, three key factors are crucial: time on the market, listing price, and selling price. A fourth aspect, the growth of these prices, also plays an important role.

Together, these variables help illustrate the overall health of the residential market.

Lightstone conducted an analysis of the time between property listing and sale from 2015 to 2023. One notable trend in 2023 was the widening gap between the property markets in Cape Town and Johannesburg.

The data used for time on market and listing prices in this analysis reflects about half of all residential sales, with selling price information sourced from Deeds Office records.

However, price growth has was not factored into the report.

The market faced disruptions in 2019 due to loadshedding, state-owned enterprise failures, and weaker economic conditions, resulting in the longest time on market during the period under review—ranging from 110 to 120 days.

In more stable years, such as 2017-2018 and 2020-2022, the average time on the market was about 60-80 days in Cape Town and 70-90 days in Johannesburg.

By the close of 2023, Johannesburg’s average time on market had increased to almost 100 days, while Cape Town’s had dropped below 80 days.

The national average stood at 90 days, further highlighting the stronger performance of Cape Town (and the Western Cape) compared to Johannesburg (and Gauteng).

January listings had the shortest time on the market, with an average of 75 days between listing and sale from 2015 to 2023.

Additionally, homes listed in January were most likely to sell at close to the asking price, with an average of 85% of the listed price achieved.

The second-best month for selling quickly and close to the listing price was July.

On the other hand, properties listed in November and December tended to stay on the market for longer, with an average time of nearly 90 days.

The data also highlights regional differences. In Nelson Mandela Bay, homes listed in January sold the fastest, averaging just 55 days on the market. Buffalo City followed closely at 59 days, Cape Town at 65 days, and Johannesburg at 80 days.

In 2024, approximately 63% of homes sold for 90% or more of their listed price, while 7% of homes were sold for less than 75% of the asking price.

Additionally, nearly 60% of homes sold within three months of being listed, with 30% selling within a month, 17% within two months, and 13% within three months.

In some areas, the time on market can vary significantly between suburbs. For example, in Cape Town, properties in Fish Hoek typically sold in under 53 days in 2024, while those in nearby Muizenberg took just over 100 days to sell.

Despite the differing times, both suburbs saw properties selling at close to the listing price—93% in Fish Hoek and 94% in Muizenberg.

Top 10 most expensive estates in Cape Town

The rise in property prices, coupled with the popularity of estate living, has solidified the Western Cape as the home to ten of the most expensive estates in South Africa.

In 2024, homes in the region sold for an average price of up to R27 million. The demand for high-end homes in the area is largely driven by buyers seeking secure and well-managed estate living.

In 2021, Cape Town’s residential property sales outpaced Johannesburg’s, and the trend has continued, with Cape Town leading in total sales volume and average price paid for homes.

According to Hayley Ivins-Downes, managing executive of real estate at Lightstone, Cape Town outperformed Johannesburg in terms of average property prices every year from 2019 to 2024.

The value of property sales in Cape Town was over R81 billion in 2024, while Johannesburg’s dropped to just over R47 billion from R59 billion in 2021.

Beyond physical safety, estates are often well-maintained by homeowners’ associations (HOAs), ensuring that property values remain stable.

Properties within these gated communities tend to appreciate faster than their freestanding counterparts, offering strong resale potential and reliable rental returns due to low vacancy rates.

The increasing demand for estate living, especially among affluent buyers and retirees, combined with perceptions of better service delivery and lifestyle in the Western Cape, has contributed to the rise of some of the most expensive estates in the country.

According to Lightstone, the most expensive estate in 2024 is Silverhurst Estate in Constantia, with an average sale price of R26.7 million.

Other notable estates include De Goede Hoop in Noordhoek and Waters Edge Estate in Milnerton, with average sale prices of R21 million and R20 million, respectively.

Here is a table showcasing the 10 most expensive estates in South Africa based on the average sale price in 2024:

#EstateTownTotal SalesAverage Price
1Silverhurst EstateCape TownR160 millionR27 million
2De Goede HoopNoordhoekR84 millionR21 million
3Waters Edge EstateMilnertonR60 millionR20 million
4Steenberg Golf EstateCape TownR235 millionR16 million
5St Johns EstateCape TownR74 millionR15 million
6V&A Waterfront MarinaCape TownR677 millionR15 million
7Boskloof Eco EstateSomerset WestR80 millionR13 million
8CanellunSomerset WestR39 millionR13 million
9Erinvale Golf EstateSomerset WestR329 millionR11 million
10Kenrock Country EstateHout BayR109 millionR11 million

Cape Town vs Joburg property markets

The gap between the Cape Town and Johannesburg property markets continues to widen, according to data from Lightstone.

From 2019 to 2024, Cape Town consistently outperformed Johannesburg in terms of average property prices, and since 2021, has edged ahead in outright sales volumes.

While Cape Town’s property market has surpassed pre-pandemic sales levels, Johannesburg’s volumes have fallen below 2019 figures.

The data reveals a clear trend: Cape Town’s residential property prices have consistently outpaced growth in Johannesburg over the past six years.

In Cape Town, the average residential property price has risen from approximately R1.6 million in 2019 to over R2 million in 2024.

In contrast, Johannesburg’s prices have remained largely stable, fluctuating between R1 million and R1.5 million during the same period.

A growing trend in Cape Town’s market is the increasing number of out-of-town buyers. According to Lightstone, the proportion of property buyers in Cape Town who previously owned property in the city dropped from 77% in 2021 to 72% in 2024.

Conversely, the percentage of buyers coming from other areas grew from 16% in 2021 to 20% in 2024, reflecting the city’s expanding appeal to external buyers.

In terms of high-value suburbs, Llandudno leads the pack with an average sales price of R26 million, followed by Bishopscourt at R23 million and Goedehoop Estate at R21 million.

Other top-performing areas include Clifton (R20 million), Constantia (R18 million), and Alphen (R17 million). Several areas such as Sweet Valley, Bel Ombre, Noordhoek, and Sillery also recorded average prices of R16 million.

When it comes to sales volumes, The Hague in Delft, adjacent to Cape Town International Airport, recorded the highest number of transactions, with over 1,000 properties sold at an average price of just R133,000.

Other high-volume areas included Sea Point, with an average price of R3.8 million, followed by Sandown (R1.79 million) and Cape Town’s CBD (R2.45 million).

Cape Town’s property market led the country in 2024, with homes selling faster and closer to their asking prices compared to other metros. Nationwide, sales slowed due to economic pressures, which widened the gap between listing prices and final sale prices.

High-value properties in other regions experienced significant discounts, while Cape Town suburbs, in contrast, showed resilience, outperforming Johannesburg and other areas.

The data also highlights that Cape Town’s purchase prices were the closest to asking prices compared to other municipalities, while Johannesburg and eThekwini saw the largest gaps between listing and sale prices.

International buyers, unmoved by Trump rhetoric, pour investment into Cape Town

Seeff Property Group data reveals a strong year for the Cape Town Metro in 2024, with over 144 properties sold for more than R20 million, totalling a combined value of R4.4 billion.

Notably, 14 of these properties exceeded the R50 million mark, including a R66 million villa in Fresnaye, sold by Seeff in December.

Seeff alone sold about 24 properties over R20 million, including four shared sales across the Atlantic Seaboard and Southern Suburbs.

The highest volume of R20 million-plus sales on the Atlantic Seaboard were in Camps Bay where Seeff sold at least eight such properties, said Ross Levin, licensee for Seeff Atlantic Seaboard.

Lightstone data reveals that property transactions in the Cape Town Metro reached approximately 39,437 units, with a total value of nearly R82.3 billion for 2024.

This marks an average price of R2.08 million, compared to R1.4 million in 2020, reflecting a remarkable 48% price growth over the past five years. According to StatsSA, price growth for the year was around 5%-7%.

In comparison, Lightstone data shows the average transaction price in Johannesburg is R1.36 million, in Tshwane/Pretoria R1.35 million, and in Durban R1.42 million.

At least 21 Cape neighbourhoods boasted at least 10 sales over R10 million, including those located in Somerset West (Erinvale), and Stellenbosch (De Zalze and Mostertsdrift), as well as George (Fancourt) on the Garden Route.

At least 15 Cape Town suburbs boast sales over R20 million. The growth in high value sales has been notable since 2020.

The Atlantic Seaboard boasts the highest number of suburbs with high value sales including Clifton, Camps Bay, Bantry Bay, Fresnaye, Llandudno, Mouille Point and The Waterfront on the Atlantic Seaboard as well as Tamboerskloof, Oranjezicht and Higgovale in the City Bowl.

Levin says further that sales have boomed over the summer with Seeff achieving a record sales month in December of R214.4 million for the Atlantic Seaboard and City Bowl areas.

He noted that the market has had an impressive start to 2025. Seeff is currently handling several high-value deals, anticipating another strong closing in February, with substantial interest in properties over R40 million, including transactions in the R100 million-plus range.

These buyers are predominantly international investors already in the country, undeterred by negative rhetoric surrounding South Africa. They are familiar with the country and confident in their decision to further invest in Cape Town property.

While high value buyers over R20 million have been predominantly local Cape buyers who continue showing their confidence in the metro by investing in property, but also buyers from Gauteng and KZN who are investing in property in the City.

Additionally, international buyers from the UK, Germany and northern European countries especially have bought property in the City during the last year, along with many other internationals, including the UAE, Saudi Arabia, Australia, Russia, Mauritius, Zambia and Zimbabwe.

Samuel Seeff, chairman of the Seeff Property Group believes that the Cape will again emerge as the strongest market this year.

Aside from locals, the continued influx of semigration and international buyers will continue to support the market. Stock shortages across most areas now present excellent opportunities for sellers to capitalise on the current market.

Top 15 most expensive suburbs to buy property in South Africa

The South African property market is becoming more appealing, with the repo rate declining, improving conditions for buyers.

In 2024, Llandudno in Cape Town recorded the highest average property price of R26.5 million, with a peak sale of R45 million, according to Lightstone Property’s annual report.

Despite this, the market remains under pressure, as high interest rates and a slow economy have caused a decline in transaction volumes.

However, Cape Town continues to lead in high-end real estate, with suburbs like Camps Bay, Clifton, and Constantia attracting strong demand for homes priced over R20 million.

Notably, Seeff Property Group sold 20 properties over R20 million in 2024, including multiple sales over R50 million in areas such as Clifton and Camps Bay.

Even the City Bowl, including Higgovale, Oranjezicht, and Tamboerskloof, saw significant sales, with one home in Oranjezicht fetching R43 million.

Cape Town’s top 10 suburbs now boast average house prices over R10 million, with four areas—Clifton (R43m), Llandudno (R27m), Camps Bay (R21m), and Higgovale (R20m)—surpassing R20 million.

The luxury market has also seen remarkable activity in Constantia Upper and Bishopscourt, where properties have sold for as much as R39 million.

Over the past five years, Cape Town’s property prices have surged by 30%, far outpacing Johannesburg’s 8.6% growth.

The city’s robust infrastructure, proximity to top schools and the University of Cape Town, and strong capital growth continue to drive demand in prime locations.

Foreign buyers are also increasingly drawn to South Africa, with many seeking vacation homes, retirement properties, or investment opportunities.

Recent notable purchases include a R72 million holiday home in Constantia by Austrian buyers and a British retiree relocating for year-round golf.

The country’s Retired Person’s Visa, offering easy access and low income thresholds, is a major incentive for retirees from Europe, the UK, the US, and Canada, according to Xpatweb.

The Western Cape and KwaZulu-Natal remain popular destinations, with areas like the Atlantic Seaboard, Franschhoek, Stellenbosch, and Umhlanga seeing high demand.

South Africa’s properties offer significant value for money, with homes typically 20-30% larger than in Europe. Foreign buyers accounted for 10% of sales in Cape Town in 2024, further bolstering the market.

Below is a list of the top 15 most expensive suburbs by average property price in 2024:

SuburbAverage Price Paid (R)Number of SalesMaximum Price Paid (R)
Llandudno26.5 million1545 million
Bishopscourt23 million2050 million
Clifton20.1 million2750 million
Constantia Heights18.4 million2548 million
Constantia18.2 million1034 million
Alphen17.7 million1740 million
Bel Ombre16.4 million3645.5 million
Steenberg Golf Estate15.3 million2030 million
Waterfront14.2 million5243.8 million
Higgovale13.8 million3032.5 million
Witteboomen13.6 million1121.5 million
Bakoven13.3 million7545 million
Silverhurst12.9 million3439 million
De Zalze Golf Estate12.6 million1927 million
The Links12.5 million1220.5 million
Bantry Bay12 million7250 million

Top 10 most expensive suburbs in South Africa with the highest number of sales

Data from property analytics group Lightstone reveals that the Western Cape is home to South Africa’s most expensive suburbs, with Llandudno, Bishopscourt, and Clifton leading the pack.

These high-end areas boast average property prices exceeding R20 million. However, despite their luxury status, these suburbs had fewer than 30 sales each last year, making them ultra-exclusive.

In contrast, Sea Point in Cape Town, Bryanston in Sandton, and Sandown in Milnerton saw the highest sales volumes. Sea Point led with 730 sales at an average price of R4,023,945, followed by Bryanston with 696 sales at R3,753,662 and Sandown with 584 sales at R2,041,470.

The dominance of the Western Cape in the luxury property market is driven by a combination of geographical advantages and social trends.

The region’s consistent draw for both local and international buyers—due to its scenic beauty, world-class amenities, and overall lifestyle appeal—keeps demand for premium properties high.

Property experts note that Cape Town has long been a magnet for wealthy individuals, whether they are looking for a second home, a retirement haven, or a place to invest. The supply of properties in exclusive areas is limited, but demand continues to surge, ensuring that these areas remain among the most expensive in the country.

While the Western Cape is currently the epicentre of South Africa’s luxury real estate market, other areas such as parts of Johannesburg (including Sandton) and Durban’s Umhlanga are also seeing steady growth in their upscale property markets.

Lightstone predicts that while the high-end market may cool slightly due to global economic conditions, there will still be robust demand in these iconic neighbourhoods.

Experts expect continued interest from both local buyers, who are attracted to secure and prestigious locations, and international investors, who view South Africa’s top suburbs as safe havens for capital preservation.