Prime Cape Town properties attract multiple offers despite winter recession

According to Andrew Golding, chief executive of Palm Golding Property Group, sought-after properties in the Atlantic Seaboard, City Bowl and southern suburbs are attracting strong interest from both local and international buyers. The lack of quality listings is driving competition, driving fast sales and cementing Cape Town's position as South Africa's leading high-end residential property market.

Golding says: “What began as a post-pandemic shift in buyer behavior has evolved into a prolonged high-demand trend, characterized by severe stock shortages, strong local and international interest and increasingly competitive bidding for prime, high-end properties. In many instances, well-located homes are being sold within days of listing, with multiple offers and, in some instances, transactions concluded above the asking price.

“The strength of demand and strong confidence in Cape Town’s residential market was recently underlined when we sold a Constantia home for its full R48m to an international buyer who purchased the property ‘on sight’ – without seeing it in person.

“The Cape Town residential market is now effectively operating at capacity all year round, with little evidence of a meaningful seasonal slowdown. Instead, transaction volumes are dictated by the availability of stock rather than fluctuations in demand.”

Basil Moraitis, regional head of Pam Golding Properties in the Western Cape, says: “We are seeing particularly strong activity in the R20m to R70m-plus segment, where competition for quality stock remains intense and buyer urgency is driving rapid sales cycles.

“Trophy property prices and unique locations with sweeping views are particularly strengthening the value proposition of prime properties, as well as driving up property prices in well-located, accessible suburbs across the Cape Metro.”

Waterfront remains in demand

Moraitis says demand remains significantly higher than supply in Atlantic Beach and the City Bowl, particularly in suburbs such as Clifton, Camps Bay, Fresnay and Bantry Bay. The market includes everything from quaint Victorian cottages to modern state-of-the-art, exclusive architect-designed homes.

Typically, City Bowl has a mix of both, while in Clifton and Camps Bay, beach bungalows, luxury villas are highly sought after. Clifton also has some of the most desirable sectional-title apartments on the seafront, priced from more than R200,000 per square metre.

Source:Supplied. Camps Bay home sold for R38.9m by Pam Golding Properties

“Beach homes and luxury villas are holding strong, while sectional-title apartment prices in Clifton are rising to more than R200,000 per square metre,” says Moraitis. Interestingly, over the five months from January to May 2026, the sectional-title average sale price in Clifton was R31.17m – a record high and representing a 64.1% increase from the previous average high of R19m in 2020. (Source: Lightstone Statistics)

The V&A Waterfront and the remainder of the beach remain in high demand amid low supply levels. The traditional part of the waterfront, that is the peninsula and yacht basin, is now tightly held with very few houses changing hands.

Buyer beware: Bishopscourt average hits R30m as stock halved in first quarter

Moraitis says another emerging trend is the acquisition of older, larger properties for redevelopment into boutique multi-unit schemes or exclusive luxury developments, further strengthening the supply of standalone homes in prime locations.

The same high-demand price pressure applies at City Bowl. Moraitis says: “In Higgovale, a contemporary three-bedroom double-storey house with Table Mountain views recently sold to a local buyer for R15.75m cash within days of being listed – above its R15.5m asking price, after competitive bidding from multiple buyers.

“While the Atlantic Seaboard attracts buyers who want to live in a more metropolitan environment – enjoying an increasingly popular ‘15-minute city’ lifestyle where you can live, work and play in one centre, the lush, upmarket Constantia and Bishopscourt areas in the southern suburbs attract family buyers with children attending top-end schools, or who want the peace and quiet of a beautiful mountain close to world-class wine farms. Seek solitude.”

In general, properties that successfully combine privacy, generous ERF sizes and security features achieve the strongest demand and premium pricing. Ready-to-move-in homes that incorporate modern comfort with timeless design are attracting the highest level of interest.

Constantia sees strong international and returning buyer demand: Supported by favorable exchange rates, strong lifestyle appeal and Cape Town's growing global profile as a premium destination, Constantia continues to attract a broad mix of local and international buyers.

The suburb's attractions lie in its combination of location, privacy, vineyard surroundings and proximity to major schools and the city. Many international buyers already have ties to South Africa, while others are attracted by lifestyle considerations and relative value compared to other global luxury markets.

International buyers are generally attracted to properties offering location, privacy, mature gardens, proximity to vineyards and lifestyle amenities rather than density or stand-alone properties.

Sam Nel and Shelley Keyes, Western Cape area managers of Pam Golding Properties, report that at current levels, R20m has effectively become the entry point for a quality family home in Constantia, which is in demand among both South African and international buyers. European buyers remain particularly active, along with increasing interest from the United States.

Source:Supplied. A four-bedroom house in Steinberg Golf Estate has been sold by Pam Golding Properties for R24m.

Keys says: “A notable feature of recent activity has been the increasing prevalence of cash buyers and ‘unseen’ transactions, particularly in tightly contested areas of the market.

“There has also been a marked change in the buyer profile, with younger buyers in their late 30s to early 40s entering the market and showing a strong preference for renovated character homes that combine traditional Cape architecture with modern interiors and open-plan living.”

Bishopscourt operates at the very high end of the market: Bishopscourt continues to serve as one of Cape Town's most exclusive residential enclaves, with demand consistently exceeding supply in all price bands, and well-priced homes selling out within weeks or even before they are publicly launched.

Is Atlantic Seaboard still a smart investment, or are we nearing a pricing ceiling?

Nel says: “Entry level prices for quality homes in Bishopscourt now typically start in the R30m to R35m range, while activity above R50m remains strong for exceptional properties. At the top end, interest in properties over R100m is increasingly being driven by both local and international buyers and ultra-high-net-worth individuals.

“Buyers in Bishopscourt are highly specific in their requirements, placing particular emphasis on privacy, north-facing orientation, land size, architectural quality and redevelopment potential. Well-located properties, particularly those offering renovation opportunities, are attracting strong competition from both investors and end-users.”

Due to stock shortage, competition among buyers continues: In both Constantia and Bishopscourt, shortage of stock remains a defining feature of the market. Quality homes often sell before or immediately after listing, while well-priced properties often attract multiple offers within a short period.

“This shortfall is being driven by continued demand, limited new supply and an increasing tendency among existing homeowners to retain properties due to long-term capital growth and the appeal of the lifestyle,” says Nel.

“As a result, entry-price points in both suburbs have risen significantly in recent years, with what was previously considered premium pricing now effectively creating new baselines in many sub-segments.”

Outlook remains positive despite price sensitivity: Moraitis concludes: “Looking ahead, demand in Cape Town’s high-end residential market is expected to remain resilient during the winter months. However, conditions are becoming increasingly price sensitive, with right-priced properties continuing to transact quickly while overpriced stock remains on the market longer.

“Winter has become a period of low demand and more of a phase of low supply, as fewer homeowners choose to list during the season. This dynamic can, in some cases, benefit well-prepared sellers by reducing competition.”

Overall, Cape Town's luxury residential sector continues to build on strong lifestyle demand, local as well as international interest and a continued perception of long-term value, cementing its position as one of the most sought-after key property markets globally.