The latest FNB Cape Town property report focuses on which suburbs have seen the most growth so far in 2018. It revealed that three-quarters of the sub-regions in Cape Town have grown slowly, with the slowest growth recorded on the Atlantic Seaboard.
The more affordable suburbs tend to be growing more quickly than the upmarket ones. In recent years, these high-end suburbs (such as Clifton and Bantry Bay) saw strong price growth, but this year the trend has slowed right down as a result of buyers searching for more affordable options elsewhere.
Mitchells Plain is showing the most growth this year at 25%, up from 2017's mid-year growth of 17,1%. The Atlantic Seaboard has only grown 2,3% in 2018, right down from last year's mid-year growth of 22%.
City of Cape Town Metro average property price growth
| Sub-region | 2018 Q1 | 2017 Q2 | Cumulative Five Year Growth |
| Atlantic Seaboard | 2,3% | 22,0% | 111,0% |
| Atlantis-Mamre | 13,3% | 13,7% | 83,1% |
| Bellville | 10,8% | 10,6% | 61,3% |
| Cape Flats | 11,6% | 10,9% | 61,5% |
| City Bowl | 10,0% | 16,6% | 109,2% |
| City Eastern Suburbs | 13,4% | 16,3% | 102,0% |
| Hottentots Holland | 11,4% | 10,2% | 60,5% |
| Mitchells Plain | 25,0% | 17,1% | 79,5% |
| North Eastern Suburbs | 10,1% | 8,8% | 68,3% |
| Southern Peninsula | 10,1% | 11,9% | 74,4% |
| Southern Suburbs | 8,4% | 12,7% | 81,5% |
| Western Seaboard | 14,4% | 14,4% | 77,7% |
| City of Cape Town Metro | 10,0% | 13,1% | 79,2% |
Three best sub-regions
Mitchells Plain, Western Seaboard and City Eastern Suburbs have shown the biggest growth in the first quarter of 2018. These are areas that offer affordable housing, which shows that there is a need for such accommodation among potential buyers in the City of Cape Town Metro.
The City Eastern Suburbs have seen one of the highest cumulative five-year growths of the entire region. Suburbs in this sub-region include Salt River, Woodstock and Pinelands. This rapid house price growth over the past five years is due to the relative affordability of property in such close proximity to the city centre.
Buyers place importance on the location as much as on the price of a house. Therefore, being close to the city centre plays a big role as Cape Town's traffic congestion worsens. The Western Seaboard (Milnerton, Blouberg and Melkbosstrand) has the second highest growth in 2018 due to demand.
Three worst sub-regions
The three lowest performing sub-regions for the first quarter of 2018 include the Atlantic Seaboard, Southern Suburbs and the City Bowl. Due to the vast expense of the average property on the Atlantic Seaboard (Sea Point, Bantry Bay, Clifton, Camps Bay etc.), this sub-region is growing very slowly; far below its previous performance.
The Southern Suburbs (Rondebosch, Newlands, Claremont, Kenilworth etc.) are among the most expensive sub-regions in the metro. House prices are relatively high in these suburbs, aimed at more affluent buyers, which has slowed the growth slightly. The multi-year high for the Southern Suburbs was 16,1% in mid-2015.
So far in 2018, house price growth in the City Bowl and surrounding suburbs has been quite stagnant. The sub-regions near to the mountain and the city centre have previously been some of the best areas for price growth over the past five years, but this has been reduced due to rapid property expansion in the area.
The City Bowl has grown 10% in the first few months of 2018 - still down from it's revised multi-year annual growth high of 23.6% halfway through 2016. This region is the closest to the city centre and as such is one of the fastest developing regions alongside the Atlantic Seaboard.
All-in-all, Cape Town's property prices are still growing, even though more slowly than last year in most of the sub-regions. Affordability has proven to be the focus for most buyers, along with proximity to the city. Affordable suburbs will continue to show the most growth in the next quarter of 2018 as well.
Image credit: © Joshua Oates