Why Now Could Be the Perfect Time to Sell in Cape Town
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As we take stock of the recent property market performance, the Western Cape continues to stand out as a top-performing region in South Africa. According to Lightstone, the province saw an average 8.7% year-on-year increase in property prices, significantly higher than the national average of 5.2%. South Africa’s Residential Property Price Index (RPPI) similarly shows strong Western Cape performance: as of March 2025, the province contributed 3.7 percentage points to the national inflation of 5.2%.
Looking ahead, most forecasts point to more moderate growth: 3 to 7% per year across greater Cape Town, possibly 7 to 9% in the most sought after suburbs. While that’s still positive, it’s slower than the double-digit surges many owners enjoyed in recent years.
National GDP growth is expected to be sluggish at just 1.2% in 2026, and persistent high unemployment and elevated public debt remain significant risks.
In terms of macroeconomic factors, some good news for sellers arrived this week: the SARB cut the repo rate by 0.25%, putting the current prime lending rate now at 10.25%. Lower rates improve buyer affordability and usually spark quicker sales with multiple offers, exactly what we’re already seeing in popular areas, where well priced homes now sell within the first couple of weeks of going to market.
In short, prices are near all-time highs, supply is low, buyer competition is fierce, and the rate cut is bringing new buyers off the sidelines. For owners thinking of selling, upgrading, or relocating, this combination creates an ideal window to achieve a premium price, before growth potentially slows or external shocks appear.
Interested to know what your property could achieve in this exciting market? Click the link below to connect with a Quay 1 area specialist for a confidential valuation and strategic guidance.
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