Cape Town property booms as stock shortage drives sales

• Buyer demand remains strong, but severe stock shortages are accelerating sales and pushing prices higher across Cape Town’s most sought-after areas.
• Atlantic Seaboard and City Bowl sales hit R11.3bn as luxury and international buyers drive record transactions and premium pricing.
• New developments across Cape Town and the Garden Route are selling rapidly as investors chase quality stock amid limited supply.

Stock scarcity, not buyer hesitation is driving the market

Despite cautious national sentiment around the property market, Cape Town and the broader Western Cape continue to defy expectations. The real story unfolding in 2026 is not weak demand, it is an acute shortage of stock.

Across suburban, coastal and lifestyle markets, agents report that buyer appetite remains robust. What has changed is the difficulty buyers face in securing suitable properties as listings struggle to keep pace with demand.

Interest rate cuts since late 2025 have improved affordability, but rates are no longer the dominant driver. Semigration, lifestyle demand and simple scarcity are now shaping market outcomes.

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As Mike Greeff, CEO of Greeff Christie’s International Real Estate, explains: “Buyer confidence hasn’t disappeared, it has evolved. The defining story in the Western Cape market is scarcity, not fear. Prepared buyers who are ready to act are winning.”

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Buyers are also becoming more diligent, inspecting properties more carefully and interrogating pricing before committing. Transactions often stall not because buyers lack intent, but because sellers are unwilling to accept conditional offers in fast-moving markets.

The result is intense competition for well-priced homes, shorter negotiation windows and sellers achieving close to asking price in many instances.

Record sales underline demand strength

‍The strength of demand is most visible in Cape Town’s luxury markets. According to Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl, combined sales across these areas surged 26% year-on-year to R11.3 billion, confirming the region’s continued dominance.

High-value sales above R20 million generated R4.2 billion, with 116 transactions above this level concluded, including 16 sales exceeding R50 million and two transactions above R100 million.

International buyers are also back in force, contributing approximately R2.8 billion, or 25% of total sales value.

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Levin says: “Demand remains exceptionally strong. International buyers are drawn by lifestyle, quality and value relative to global markets, and sellers are achieving premium prices as stock remains limited.”

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New developments selling rapidly across the region

‍Scarcity is not confined to resale markets. New developments across Cape Town and the Garden Route are seeing exceptional uptake as investors seek quality stock.

David Cohen, Managing Director of Signatura, highlights the scale of demand: “Our Kingfisher launch at Riverlands achieved over R617 million in sales on launch day alone, showing strong appetite for well-located apartments across Cape Town. Demand in the Garden Route has also been exceptional, with developments in George, Knysna and Mossel Bay selling rapidly due to limited quality supply.”

Cohen notes that investors are increasingly drawn to developments offering strong rental returns and integrated lifestyle precincts, particularly in high-growth coastal destinations.

The bigger picture for Cape Town and the Western Cape

The Western Cape property market continues to benefit from semigration, lifestyle appeal, infrastructure reliability and strong investor confidence relative to other metros.

Rental markets remain tight, driven by limited availability and short-term letting reducing long-term rental stock, further supporting prices.

The key constraint across the region remains supply. Buyers are present, capital is available, and confidence remains intact. The challenge is finding stock.

Unless listings improve meaningfully, the likely outcome is continued price support and intense competition for quality properties rather than any broad market slowdown.

In short, Cape Town’s property market is not cooling, it is constrained by success. And in markets defined by scarcity, prepared buyers and sellers continue to win.

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