Cape Town’s luxury property hotspots defy market slowdown

• ‍Bishopscourt’s average selling price has surged to R30 million, nearly triple its 2020 average despite fewer buyers.
• Constantia Upper now averages R26 million, driven by limited stock, lifestyle appeal and sustained local and international demand.
• Luxury Southern Suburbs continue outperforming broader market trends as affluent buyers compete for scarce prime properties.

Luxury market continues to outperform

While many parts of South Africa’s residential property market are experiencing slower transaction volumes amid economic uncertainty, Cape Town’s premier luxury suburbs are telling a very different story.

Property prices in some of the city’s most prestigious addresses have climbed to record levels, with average selling prices in Bishopscourt and Constantia Upper now reaching R30 million and R26 million respectively.

According to Francois Venter, Seeff Property Group’s lead agent for the Southern Suburbs luxury market, the strongest gains are being recorded across what has become known as “The Uppers”, an elite cluster comprising Bishopscourt, Constantia Upper, Newlands, Claremont Upper and Kenilworth Upper.

Despite a 17% decline in buyer activity compared to last year, prices have continued rising sharply as limited housing stock collides with sustained demand from affluent local, semigration and international buyers.

The numbers behind the boomThe scale of growth across these suburbs is remarkable.

Bishopscourt stands out as one of South Africa’s strongest-performing luxury markets. Home to just over 300 residences, average property values have increased by approximately R19 million since 2020, equating to annual capital growth of more than R3 million per property.

The suburb’s exclusivity, large estate-sized properties, mature tree-lined avenues and proximity to Cape Town’s leading schools continue to attract high-net-worth buyers seeking long-term value and privacy.

Why buyers are paying more‍

According to Venter, supply constraints remain the primary driver of price growth. Property listings across these premium suburbs have effectively halved compared to a year ago, creating intense competition whenever quality homes enter the market.

While transaction volumes have declined, the value of sales has remained remarkably resilient. Propstats data shows that only 44 properties were sold during the first quarter, compared with 74 during the same period last year. Yet the combined value of transactions remained virtually unchanged at around R860 million.

Buyers continue to pay premiums for the lifestyle advantages these suburbs offer, including:

• Access to leading private and public schools.
• Proximity to Cape Town’s business districts.
• Exceptional mountain and vineyard views.
• Larger properties and greater privacy.
• Reliable infrastructure and municipal services.
• Strong security and long-term value preservation.

Currency fluctuations, global mobility trends and continued semigration into the Western Cape are also supporting demand at the top end of the market.

A market built on scarcity

What makes these suburbs particularly resilient is their limited ability to expand.

Unlike emerging luxury nodes where new developments can increase supply, areas such as Bishopscourt and Constantia Upper are largely built out, meaning opportunities to acquire property remain rare.

This scarcity continues to underpin pricing even during periods of weaker economic growth, higher interest rates and global uncertainty.

Looking ahead

While economic headwinds, geopolitical tensions and interest rate pressures may continue weighing on broader residential activity, Cape Town’s luxury Southern Suburbs appear well positioned to maintain their premium status.

For investors and homeowners alike, “The Uppers” remain among South Africa’s most sought-after residential addresses, combining exclusivity, lifestyle, security and long-term capital preservation.

As supply remains constrained and affluent buyers continue prioritising quality locations, Bishopscourt, Constantia Upper and their neighbouring luxury enclaves are increasingly proving that scarcity remains one of the most powerful drivers of property value.

 Photograph: Constantia Upper, Hohenhort – R35 million for this spectacular 4017sqm estate with a luxury 5-bedroom homestead with a wine cellar, upstairs apartment or teen pad/work-from-home or guest suite, staff accommodation, heated pool, multi-car garaging, two stables and a tack room for equestrian enthusiasts, and stunning mountain views.

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