Western Cape Property Market Research

By Warren Brusse, Chief Executive Officer, Zebinvest Real Estate Development

1. Executive Summary

The Western Cape continues to be South Africa's top-performing property region, with house price inflation tracking at 8–9% annually versus a 5.2% national average. Investment is buoyed by semigration from Gauteng and KZN - 92,000 working-aged adults relocated during the past two years, 68% holding tertiary qualifications. The combination of strong demographic inflows and constrained supply underpins our 10-year forecast:

• Residential capital growth: 7–10% p.a.

  
  

• Income yields: 6–8% p.a. across sectors

  
  

2. Market Outlook & Expert Commentary

• Pam Golding Properties: Dr Andrew Golding points to a robust luxury segment. He notes “sentiment has improved… boosting confidence and activity in the luxury market”.

  
  

• Seeff Property Group: Samuel Seeff underpins domestic optimism, expecting “price growth of anything up to 15% to 20% next year” in prime Western Cape nodes.

  
  

• RE/MAX Southern Africa: Adrian Goslett highlights record R4.1 billion in 2024 sales across Cape Town, with particularly strong returns along the Western Seaboard.

  
  

• Quay 1 International Realty: Quay 1 confirms strong premium coastal demand, with listings in Llandudno and Atlantic Seaboard moving within hours.

  
  

• Jawitz Properties: Jawitz notes a “surge in sectional-title estates and mixed-use projects” particularly in Cape Town’s expanding northern suburbs.

  
  

3. Capital Growth & Rental Yield Projections

Metric	Projection (2025–2035)
Capital growth	7–10% per annum
Rental yields	6–8% per annum (with peaks up to 10.5% in premium and short-term lettings)

Premium City Bowl and Atlantic Seaboard yields can reach 10–12%, with some short-stay units achieving 11.6% net.

4. Sector Breakdown & Key Insights

• Residential

  • Cape Town leads with 8.5% annual growth, small towns like Swellendam and Barrydale also show strong performance from tourism and semigration.

    
    

  • Affordable homes (<R1 million in northern suburbs) remain accessible due to sectional-title developments with high first-time buyer representation (37% under age 35).

    
    

• Retirement

  • Towns in the Boland and Garden Route attract retirees seeking lifestyle estates with healthcare proximity; Somerset West sees a 54% buyer share aged 50–65+, Stellenbosch 45%.

    
    

• Retail

  • Western Seaboard centres (Bloubergstrand, Table View) command 11% capex yields, outperforming many suburban shopping nodes.

    
    

• Office/Commercial

  • Uptake in suburban work‑live hubs in Durbanville/Kraaifontein supported by remote working, with growing investor interest in green-office conversions in CBD.

    
    

• Hospitality

  • Tourism-driven markets like George, Knysna, Overstrand benefit from strong holiday rental demand. Knysna and Plettenberg Bay lead with vacancy-constrained short-stay markets .

    
    

• Mixed‑Use

  • CBD development is shifting towards 15-minute city models, integrating residential, office, retail, and green space - driven by sustainability and liveability trends.

    
    

5. Growth Nodes of Opportunity

• Cape Winelands & Boland

  • Somerset West, Stellenbosch, and Paarl benefit from airport expansion, infrastructure upgrades, and a steady inflow of 53 new families per month in Somerset West.

    
    

• Northern Suburbs

  • Durbanville and Kraaifontein enjoy improved connectivity via R300 ring-road and N7 upgrades, providing family-friendly options at R700k to R1.2 m.

    
    

• Western Nodes

  • Bloubergstrand’s entry-level homes begin at R900k; Langebaan attracts remote workers with economy-driven coastal lifestyle.

    
    

• Tourism Coasts

  • George, Knysna, Overstrand suburbs benefit from growing international holiday influx; Knysna rental yields average 5–7% regionally.

    
    

6. Demographics & Target Markets

• Young professionals & first-time buyers: Predominantly under 35; active in segment under R1 million with transfer-duty relief increasing accessibility.

  
  

• Semigrants & Remote Workers: Cape Town attracts professionals opting for coastal/northern suburbs; 183,000 net internal movers in two years.

  
  

• Foreign & affluent investors: 67% of prime-area sales involve foreign buyers; over R1 billion foreign purchases in first five months of 2025.

  
  

• Retirees: Preference for amenity-rich retirement estates in Boland/coastal towns; significant representation in 50–65+ age bracket.

  
  

7. Demand for Property Size, Features & Amenities

• 2–3 bedroom sectional-title units remain highly sought after due to affordability and resale potential.

  
  

• Estate living: Prioritized in gated communities with schools, security, parks, and fibre.

  
  

• Work‑live‑play: Home offices, co-working, energy efficiency, and PropTech adoption are key.

  
  

• Luxury finishes: Coastal and Atlantic Seaboard homes with premium finishes consistently move within hours, often fetching R27–R66 million.

  
  

9. Conclusion & Call to Action

With strong fundamentals - capital growth of 7–10%, yields of 6–8%+, demographic trends, affordability levers, tourism tailwinds, and infrastructure investment - the Western Cape represents an era-defining opportunity. We invite landowners to explore partnership avenues with Zebinvest to unlock land potential via structured, cross-sector, mixed-use precincts that deliver sustainable returns.

Contact Zebinvest today to engage in a strategic, turnkey development partnership - unlocking land value and building the future of the Western Cape property market.

By Warren Brusse, Chief Executive Officer, Zebinvest Real Estate Development