Cape Town residential properties offer good value

Razor's Kalay Maistry and NTT Data's Marian Scala named in Provoke Media’s Innovator 25 EMEA

Danette Breitenbach

Cape Town property prices at present still offer exceptionally good value and this appears to have been given credence by a report by Global Property Guide, which compares the price per square metre - and other comparative figures - of homes in the world's 60 most expensive cities.

Predictably, Monaco emerged top of the list with a figure of US$53 226 per/m². It was followed by central London (US$25 05), Hong Kong (US$23 71) and Paris (US$18 066). Residential property in Cape Town is, by comparison, rated at a low US$4 272 per/m².

"This figure puts us below half way on the international list," said Tony Clarke, managing director of the Rawson Property Group. "Our residential property is on par with such recognised glamorous spots as Andorra, Barbados and Montenegro and it is also lower than that of relatively depressed areas of Dublin and Prague."

High rental return

Equally significant, said Clarke, is the fact that residential property in Cape Town is reported in the survey to give a 5,7% rental return. This, too, is higher than what can be achieved in the top 25 cities listed in the survey. The figures are unlikely to remain quite so much in international buyers' favour in perpetuity and now would be a good time to start considering an investment in upmarket Cape Town property.

"Reports from our Constantia franchise indicate that this is already happening. They have had an influx of enquiries for R10 million plus property and our Stellenbosch franchise confirms that this is happening in their area too," Clarke concluded.