The Western Cape’s housing market is characterised by a diverse range of housing options with a significant portion falling into the subsidised and mid-level categories.
According to Lightstone, nearly 510 000 housing units in the province are valued at under R750 000 which accounts for 40% of the total housing stock (1.277 million).
Three out of four properties are subsidised units which includes RDP and Breaking New Ground (BNG) houses, state-subsidised units, and old municipal stock. Mid-level properties, valued at between R250 000 and R750 000 account for 22%. Affordable houses, valued at under R250 000, make up 4%.
Hayley Ivins-Downes, Managing Executive Real Estate at Lightstone says new stock coming to market demonstrates the dominance of subsidised housing with limited affordable stock coming onto the market from 2019 – 2022, accelerating in 2023 and into 2024.
New stock added (2019 – 2024)
Half the stock is concentrated in seven areas namely Cape Town (16%), Khayelitsha (9%), Mitchells Plain (8%), Blue Downs (8%), Gugulethu (6%), George (3%), and Strand (2%).
The top five places remain the same (although Blue Downs and Mitchells Plain swop places) when reviewing the top 20 areas in terms of volume of sales in 2023 to date – Eerste Rivier, City of Cape Town NU, and Atlantis recording more sales than Strand or George.
Sales per town (2023 to date)
The average sales price is the highest in Mitchells Plain, Strand, Brackenfell, Milnerton, and Parow with the lowest in Swartland NU and Grabouw with average sales prices the highest in Mitchells Plain, Strand, Brackenfell, Milnerton, and Parow and the lowest in Swartland NU and Grabouw.
The value of mid-level and subsidised sales in the Western Cape have been steadily rising over the past ten years while the average sales price of affordable homes has shown marginal improvement over the period.
Average sales prices in the Western Cape
“The average sales price of mid-level and subsidised houses in Cape Town mirrors the trajectory in the Western Cape, while movements in the affordable category have been erratic, and the affordable average sales price is the same in nominal terms over ten years,” she concludes.
Average sales prices in Cape Town
Cape Town average sales price per classification
