Cape Town’s Atlantic Seaboard Sees Surge in Luxury Property Demand

The residential property market along Cape Town’s Atlantic Seaboard has seen a particularly buoyant start to the 2025 summer season, driven largely by increased demand for luxury properties and a shortage of available stock. Basil Moraitis, regional head of Pam Golding Properties in the Western Cape, reports that the market has remained strong despite the challenges faced globally.

Moraitis notes, “The fact that December 2024 trading was busy throughout the entire month is a positive indicator, underscoring the ongoing demand for Cape Town’s sought-after Atlantic Seaboard, particularly in the prime luxury property segment.” The trend has continued into January 2025, with sales activity picking up even further. February 2025 also looks promising, with a growing waiting list of qualified buyers from both local and international markets, all eager to secure a piece of Cape Town's prestigious coastline.

Properties in prime locations with desirable views, proximity to beaches, and access to amenities such as the central city and V&A Waterfront are selling quickly, indicating the return of a seller's market. The demand is especially strong in the R20 million and above category, driven by both local buyers, upcountry buyers, and international clients, notably South African expatriates looking to return and enjoy the Cape’s high-quality lifestyle and climate.

Among the high-profile sales in January 2025 were homes in Clifton, sold for R47 million to a local buyer and R46.5 million to an international buyer from Germany, as well as a property in Camps Bay purchased for R55 million by a UK buyer.

Moraitis points out that stock shortages are a significant issue in the market. “Our Camps Bay office, located in prime Victoria Road, attracts many walk-ins eager to explore prime real estate opportunities near world-class beaches and restaurants,” he says. The lack of available properties has created a shortage of stock, particularly in the highly coveted V&A Waterfront area, where no sales have occurred in the past three months due to the absence of residential property for sale.

Properties in the V&A Waterfront range from R15 million to R75 million, while three-bedroom apartments in Clifton are listed from R35 million to R50 million. Villas in Camps Bay typically range from R20 million to R55 million. A standout statistic from 2024 is the median price of R18.875 million for homes in the R10 million-plus price band in upmarket Fresnaye.

In Mouille Point and De Waterkant, properties in the R5 million to R10 million price band have seen significant growth, with median sales prices rising by 14.2% and 17.3%, respectively, compared to the previous year, according to Lightstone statistics.

Moraitis notes, “In January, we achieved strong sales in Mouille Point, with apartments selling for R6.8 million, R6.1 million, R5.8 million, R4.95 million, and R3.125 million for smaller one- or two-bedroom apartments. The lack of stock is pushing prices upward, especially in the market exceeding R5 million.”

As demand surges, properties with unique features are receiving even more attention from affluent buyers. “The more unique the property, the greater the interest from wealthy buyers looking for iconic, trophy homes. Cape Town has truly been ‘discovered,’” says Moraitis.

With rising demand and limited availability, the Atlantic Seaboard’s residential market is expected to continue thriving in the coming months, offering opportunities for both buyers and sellers in the luxury segment.