What is the average house price in Cape Town?

Authored by the expert who managed and guided the team behind the South Africa Property Pack

Yes, the analysis of Cape Town's property market is included in our pack

Who is the author of this content?

THE AFRICAN VESTOR

A team specialized in real estate investing in African countries (South Africa, Kenya, Morocco, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cape Town. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The African Vestor, we explore the Cape Town real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in areas like the City Bowl, Atlantic Seaboard, and Southern Suburbs. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What types of properties are most common in Cape Town and how do their average prices differ?

Cape Town's property market offers three main property types with distinct price ranges across different areas.

Apartments dominate the entry-level and investment market, particularly in areas like the City Bowl, Sea Point, and Green Point. These properties range from R800,000 for studio units in outlying areas to over R20 million for luxury penthouses in prime Atlantic Seaboard locations. The apartment market serves both young professionals and investors seeking rental income.

Freestanding houses remain the most popular choice for families, especially in suburban areas. Prices vary dramatically by location, starting under R2 million in northern suburbs like Bellville and Kraaifontein, rising to R5-15 million in sought-after southern suburbs such as Newlands and Constantia, and reaching upwards of R15 million in elite coastal areas like Clifton and Camps Bay.

Townhouses and cluster homes represent the middle market, commonly found in secure estates and established suburbs. These properties typically range from R1.5 million to R4 million, with luxury options in premium estates reaching R10 million or more. They offer the perfect balance between security, space, and affordability for many Cape Town buyers.

As of June 2025, apartments offer the most accessible entry point into Cape Town's property market, while freestanding houses provide the greatest variety in price ranges and locations.

Which neighborhoods are considered the most expensive, most up-and-coming, and most budget-friendly in Cape Town?

Cape Town's property landscape divides into three distinct categories based on price and investment potential.

The most expensive suburbs command premium prices due to their location and prestige. Clifton leads with average house prices of R43.9 million, with top sales exceeding R60 million. Camps Bay follows at R21.1 million average, while Bantry Bay and Fresnaye range between R16-17 million. The V&A Waterfront averages R15.1 million for sectional title properties, and exclusive areas like Bishopscourt and Constantia see luxury homes selling for R20-30+ million.

Up-and-coming neighborhoods offer strong growth potential and attractive yields. Woodstock and Salt River benefit from urban regeneration and creative industry growth, delivering rental yields over 8%. Observatory attracts students and young professionals with its vibrant, affordable character. Century City continues expanding with mixed-use developments creating strong apartment demand, while Durbanville offers affordable family homes with excellent growth prospects. Muizenberg's beachfront properties are gaining popularity among younger buyers and international tourists.

Budget-friendly areas provide entry-level opportunities for first-time buyers. Parklands, Table View, Goodwood, Parow, Bellville, Kraaifontein, and Brackenfell offer properties from R750,000 to R1.5 million. These northern and outlying suburbs provide access to Cape Town's property market without the premium prices of central and coastal areas.

It's something we develop in our Cape Town property pack.

How much does the average home cost in each area right now?

Area/Suburb	Average Home Price	Property Type Focus
Clifton	R43.9 million	Luxury beachfront homes
Camps Bay	R21.1 million	Premium coastal properties
Constantia	R20-30 million	Wine estate homes
Bantry Bay/Fresnaye	R16-17 million	Atlantic Seaboard luxury
V&A Waterfront	R15.1 million	Sectional title apartments
Southern Suburbs	R5-15 million	Family homes near schools
City Bowl	R2.5-5.5 million	Apartments and townhouses
Northern Suburbs	R1.2-2.5 million	Affordable family homes
Table View/Parklands	R850,000-1.5 million	Entry-level apartments

What's the average cost per square meter depending on area and property type?

Cape Town's property prices per square meter vary significantly based on location and property type, with coastal areas commanding the highest premiums.

The Atlantic Seaboard represents Cape Town's most expensive real estate, with apartments averaging R60,000 per square meter and houses exceeding R40,000 per square meter. This premium reflects the area's world-class beaches, mountain views, and international appeal.

The City Bowl follows as the second most expensive area, with apartments at R45,000 per square meter and houses ranging from R30,000-R40,000 per square meter. The central location, cultural attractions, and urban lifestyle justify these elevated prices.

Southern Suburbs offer more moderate pricing at R35,000 per square meter for apartments and R25,000-R30,000 for houses. These family-oriented areas provide excellent schools and suburban amenities at more accessible price points.

Table View and coastal northern suburbs average R27,000 per square meter for apartments and R18,000-R22,000 for houses, offering coastal living at significantly lower costs than premium areas. The Cape Town market average sits at R28,000-R30,000 per square meter for apartments and R17,500-R20,000 for houses, reflecting the city's diverse price spectrum.

What are some typical purchase price examples for different property types in different parts of Cape Town?

Real purchase examples across Cape Town demonstrate the wide price range available to different buyer segments.

In budget-friendly areas like Parklands and Table View, one-bedroom apartments sell for R850,000-R1.2 million, while two-bedroom townhouses range from R1.3-1.7 million. These areas offer coastal proximity without premium pricing, making them ideal for first-time buyers and investors.

Northern suburbs including Bellville and Kraaifontein feature three-bedroom family homes priced between R1.5-2 million. These established areas provide excellent value for families seeking space and affordability.

Southern suburbs like Plumstead and Wynberg command R2.2-3.5 million for three-bedroom houses, reflecting their prestigious school districts and mature suburban character. Mid-range areas such as Durbanville and Pinelands offer cluster homes from R2.5-4 million.

Premium areas show dramatic price increases, with Sea Point and Green Point two-bedroom apartments selling for R3.5-5 million, while luxury penthouses reach R10-20 million. The ultimate luxury markets of Clifton and Camps Bay see apartments from R5-15 million and houses from R20-60+ million, representing Cape Town's pinnacle properties.

How have property prices in Cape Town changed compared to 5 years ago and 1 year ago?

Cape Town's property market has shown consistent growth over both short and long-term periods, outperforming other South African cities.

Over the past five years, Cape Town property prices have increased at an average annual rate of 5%, contributing to a remarkable 141% price increase since 2010. This long-term growth significantly outpaces all other major metropolitan areas in South Africa, establishing Cape Town as the country's premier property investment destination.

The most recent 12-month period from 2024 to 2025 has seen continued growth of 5%, demonstrating the market's resilience and ongoing demand. This consistent performance reflects several key factors driving Cape Town's property market strength.

Semigration continues as a major trend, with South Africans relocating from other provinces to Cape Town for lifestyle and business opportunities. International buyers, particularly digital nomads and lifestyle migrants, add additional demand pressure. The tourism recovery following global travel restrictions has further boosted short-term rental markets and overall property demand.

As we reach mid-2025, Cape Town's property market maintains its position as South Africa's most dynamic and fastest-growing, with prices showing no signs of significant cooling despite elevated levels compared to other cities.

What are the forecasts for property prices in Cape Town over the next 1, 5, and 10 years?

Cape Town's property market outlook remains positive across all time horizons, with experts predicting continued growth driven by lifestyle demand and limited supply.

Short-term forecasts for the next 12 months through 2026 predict annual growth of 3-7%, with the market maintaining its current momentum. This range reflects potential economic variables while acknowledging Cape Town's underlying demand strength.

Medium-term projections over the next five years expect continued annual growth of 3-7%, supported by ongoing semigration trends and international buyer interest. The digital nomad phenomenon and remote work adoption are expected to sustain demand for Cape Town properties, particularly in well-connected areas with lifestyle amenities.

Long-term forecasts over the next decade remain optimistic, with the Western Cape expected to maintain premium growth rates compared to other South African provinces. Planned infrastructure investments, including transport improvements and renewable energy projects, should support continued property value appreciation.

The combination of limited developable land in prime areas, ongoing lifestyle migration, and Cape Town's established international reputation suggests the city will continue outperforming other South African property markets. However, buyers should expect growth rates to moderate slightly from the exceptional levels seen over the past decade as the market matures.

What additional fees, taxes, and costs should buyers expect on top of the purchase price?

1. **Transfer Duty**: Applied on a sliding scale starting at 3% for properties above R1 million, with exemptions for first-time buyers purchasing below R1 million.2. **Conveyancing Fees**: Legal costs for property transfer typically range from 0.5-1% of the purchase price, covering attorney fees and administrative processes.3. **Bond Registration Fees**: Additional legal fees apply when financing your purchase through a home loan, covering mortgage registration costs.4. **Municipal Rates**: Annual property taxes of 0.65% of the property's municipal value, paid monthly or annually depending on preference.5. **Homeowner's Insurance**: Mandatory insurance coverage protecting against fire, theft, and other risks, with costs varying by property value and location.6. **Sectional Title Levies**: Monthly charges for apartments and townhouses in complexes, covering common area maintenance, security, and building insurance.7. **Estate Levies**: Additional monthly fees for properties in security estates, covering gate security, common facilities, and estate management.8. **Compliance Certificates**: Electrical, plumbing, and other safety certificates required for property transfer, typically costing R5,000-15,000 total.

What mortgage options are available locally and what down payment and interest rates can buyers expect?

Cape Town's mortgage market offers various options for both residents and qualified non-residents, though terms vary significantly based on buyer status.

All major South African banks including Standard Bank, First National Bank, ABSA, and Nedbank provide home loans to qualifying applicants. These institutions offer competitive products tailored to different buyer segments and property types.

Down payment requirements typically range from 10-20% of the purchase price for South African residents with strong credit profiles. Foreign buyers face more stringent requirements, often needing deposits of 50% or more, reflecting increased lending risk and regulatory requirements.

Interest rates as of June 2025 hover around the prime lending rate of 11.75%, with some banks offering slight discounts for strong applicants or existing customers. Rates can vary by 0.5-2% based on credit scores, income stability, and deposit amounts.

Loan terms extend up to 20-30 years, subject to credit approval and borrower age. Banks assess affordability based on debt-to-income ratios and other financial commitments. Pre-approval processes help buyers understand their borrowing capacity before property hunting, providing significant advantages in competitive markets.

What are the best property choices depending on whether you plan to live there full-time, rent short-term, long-term, or resell later?

Your property strategy in Cape Town should align with your primary objective, as different areas and property types suit different goals.

For full-time living, family homes in Southern Suburbs, Northern Suburbs, Durbanville, or Pinelands offer the best combination of space, schools, and community amenities. Secure estates provide additional safety and lifestyle benefits for families with children. Proximity to quality schools, shopping centers, and medical facilities should guide your choice.

Short-term rental investments perform best in tourist-focused areas including City Bowl apartments, Sea Point properties, V&A Waterfront units, and anything near Camps Bay. These locations attract both international tourists and domestic business travelers, generating high nightly rates and strong occupancy levels throughout the year.

Long-term rental properties excel in areas with consistent tenant demand such as Observatory (students and young professionals), Woodstock and Salt River (young professionals and creatives), and Bellville (families and working professionals). These areas provide stable rental income with lower vacancy rates compared to tourist areas.

For resale potential, focus on either up-and-coming areas like Woodstock, Century City, and Muizenberg where gentrification drives value growth, or established luxury suburbs like Clifton and Constantia where international demand provides capital preservation and steady appreciation.

It's something we develop in our Cape Town property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Africa versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How do property prices and investment returns in Cape Town compare to other major South African cities and internationally?

Cape Town significantly outperforms other South African cities in both property values and investment returns, while remaining competitive internationally.

Domestically, Cape Town's average property price of R3.5 million substantially exceeds Johannesburg's R1.5 million and Durban's R1.05 million. The cost per square meter gap is even more pronounced, with Cape Town averaging R28,000-R30,000 compared to Johannesburg's R12,000-R15,000, demonstrating Cape Town's premium market position.

Cape Town's property market has delivered superior capital growth, with prices rising 141% since 2010 while other major metros lag significantly behind. This outperformance reflects Cape Town's lifestyle appeal, international recognition, and limited supply of prime real estate.

Rental yields in Cape Town average 5.2-7%, with some central areas exceeding 8%. These returns compare favorably to other South African cities while offering additional benefits of capital appreciation and international demand.

Internationally, Cape Town offers compelling value compared to global cities like London, Sydney, or New York, where similar properties cost multiples of Cape Town prices. The combination of reasonable entry costs, strong yields, favorable exchange rates for foreign buyers, and world-class lifestyle amenities positions Cape Town as an attractive international investment destination.

Given all this information, what are the smartest real estate investments in Cape Town as of 2025?

The smartest Cape Town property investments in 2025 depend on your risk tolerance, budget, and investment timeline, with several clear opportunities standing out.

Up-and-coming areas offer the highest growth potential for medium-term investors. Woodstock, Salt River, Observatory, and Century City provide strong rental yields exceeding 7% while benefiting from ongoing gentrification and urban development. These areas attract young professionals and creative industries, ensuring sustained rental demand and capital growth.

Established luxury markets in Clifton, Camps Bay, Constantia, and Bantry Bay provide capital preservation and international appeal. While yields may be lower at 4-6%, these areas offer prestige, steady appreciation, and strong resale potential to international buyers.

Budget-conscious investors should consider Parklands, Table View, Bellville, and Durbanville for affordable entry points with solid rental demand. These areas provide yields of 6-8% while offering potential for capital growth as Cape Town's development spreads outward.

Short-term rental hotspots in City Bowl, Sea Point, and V&A Waterfront capitalize on Cape Town's tourism appeal, generating premium nightly rates and strong seasonal demand. These properties benefit from the city's international profile and growing digital nomad population.

New developments in eco-estates and mixed-use precincts offer modern amenities, energy efficiency, and developer incentives, appealing to environmentally conscious buyers and tenants seeking contemporary living options.

It's something we develop in our Cape Town property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Cape Town Property Investment Guide
2. Cape Town Average Apartment Prices
3. Clifton Remains Cape Town's Most Expensive Suburb
4. Cost of Living Cape Town
5. Luxury Living Suburbs Analysis
6. Wealthiest Suburbs in Cape Town
7. Best Neighborhoods for 2025 Investments
8. Cape Town Area Analysis
9. Best Neighborhoods for Families
10. Affordable Areas in Cape Town