Tag Archive for: Property Market

Andrew Stegmann

Cape Town Back-yarders Urged to Register on Housing Database

An increase in urbanization is the leading factor in Cape Town’s housing crisis.

With only one in three registered on the city of Cape Town’s housing database, the city has encouraged more people in this sector to register.

The city said in a statement recently that almost 70% of informal back-yarders in the metro would not be eligible for a housing opportunity because they were not registered for subsidized housing.

The city says increased urbanization across South Africa over the past decade has resulted in a steady growth of backyard dwellings on publicly- and privately-owned land.

“The great need for affordable housing and services in and near urban centers especially means that we must ensure that we work in a planned, systematic and fair manner.

“It is really important for backyard dwellers to apply to register on the housing database. Back-yarders who are not registered on the database cannot be considered for housing opportunities created for them by the city and Western Cape Government. “

The city said that all qualifying beneficiaries and especially backyard dwellers should ensure that they were registered and that their details were correct and up to date.

“We also continue to focus on enhanced service delivery especially to back-yarders residing on council-owned properties. Cape Town was the first city in South Africa to introduce basic services to back-yarders residing on Council-owned properties.

“The back-yarder program started in 2014 and entails the provision of one-to-one water, refuse and electricity services to back-yarders residing on Council-owned property, such as rental units.

“The Municipal Finance Management Act determines that public money may not be used for enhancing private properties. Therefore, much work still needs to be done to see how back-yarder services will be rolled out to those residing on private properties within the framework of the law.

How to register on the housing database

The city said that urbanization was a challenge that all tiers of government, as well as the private sector and civil society organisations should deal with.

We “must work together and ensure that we are ahead of the curve with our plans to address rapid urbanization. We must bring our communities on board with the alternatives on offer”, the city’s member of the mayoral committee for human settlements, councilor Malusi Booi, said.

He also explained that the service was free and that there was no payment for registration.

Applicants can register on the housing database online, at city housing offices, MyEstate mobile offices that comes to various areas and at the Parow or Wale Street walk-in centers.

Applicants need a certified copy of their IDs and their spouses’ IDs, a completed housing assistance form, copies of their children’s birth certificates, marriage or divorce certificates, details of special needs where applicable, as well as supporting documents such as medical records and proof of address (FICA).

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

Cape Town is the SA Metro with the Highest Prices Paid for Residential Property This Past Year

For the 12-month period to end November, Cape Town topped R21.75bn in residential property transactions at an average transaction value of R2.2m. The metro also scooped the highest prices paid for residential property in the country this year according to Ross Levin, managing director for Seeff Atlantic Seaboard and City Bowl.

Comparatively, Pretoria metro reached around R17bn (with an average of R1.2m), Sandton R13.4bn (with an average of R2.3m), Johannesburg R13bn (with an average of R1.483m) and Durban R6.4bn (with an average of just over R1m).

The wealthy might not be buying as much as they used to, but Cape Town still tops their list of most desirable property, says Levin. Atlantic Seaboard and City Bowl sales amount to R4.3bn including 30 of the highest prices paid.

The rental market has also performed exceptionally despite the headwinds. Seeff has concluded rentals of up to R170,000 per month in Fresnaye, R130,000 at the Waterfront, R120,000 in Bantry Bay and R60,000 permonth in Tamboerskloof in the City Bowl. Holiday rentals this summer is expected to reach R100,000-R250,000 per night in Clifton.

Semigration buyers back

Semigration buyers are back and Levin says that sales are often delayed only by the slow sales cycles in Gauteng and other inland provinces. Foreign buyers too have invested over R500m in property with the highest demand from German, UK and US buyers.

Cape Town achieved about 50 high-value sales priced from R20m-R60m compared to just two in the upper end of Sandton/Johannesburg and a highest price of R23m.

The highest prices paid include: R60m in Fresnaye, R58.5m in Bantry Bay, R47m in Bishopscourt, R45m in Clifton, R39m in Higgovale, R36.5m in Llandudno, R36m in Camps Bay, R34m in Constantia Upper and R32m in Mouille Point. We are likely to see a few more high value sales over the summer, says Levin further.

Notable too, is that nine of the top 10 suburbs in the country are now in Cape Town, up from seven about three years ago. These all now boast a median price of over R10m and over R20m for Clifton, says Levin. Only Sandhurst in Sandton/Johannesburg is included in the top 10 ranking:

Southern Suburbs

The Southern Suburbs enjoyed an active year and is not just home to two of the top suburbs in the country but offers a high concentration of top performing schools which drives demand, says James Lewis, managing director for Seeff Southern Suburbs, Hout Bay and Llandudno.

Total sales of almost R4.5bn has been achieved including six high-value properties ranging to R34m in Constantia and R47.5m in Bishopscourt. Although the sub-R10m price band dominated, the ‘Uppers’ such as Claremont and Kenilworth have attracted prices of up to R20m (Claremont) while Newlands achieved eight sales above R10m, and Rondebosch achieved a further six.

The Southern Suburbs rental market has been a top achieving sector this year, says Lewis. Student rentals and young professionals kept the sectional title rental agents busy while upper-end family tenants paid up to R80,000-R100,000 per month in top-end areas such as Constantia.

Crowning another year of top accolades, Cape Town was voted best city in the world for the seventh successive year by the UK’s Telegraph Newspaper. The Cape has lost none of its sparkle says Mr Levin. It is the second wealthiest city in the country and upper-end buyers will spend 100%-200% on average more on real estate purchases on the Atlantic Seaboard compared to anywhere elsewhere.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].