Cape Town: Where are Millennials Investing?
Category The Property Market
Individuals born roughly between 1980 and 2000 - Generation Y or millennials as they have come to be known are rapidly becoming the new face of property in South Africa. Growing up in the wake of online and digital, millennials consume information at a much faster pace, are constantly on the go and therefore seek properties that match their lifestyles.
As the up-and-comers, in the property buying game, search for accommodation in areas that serve their lifestyle requirements - Cape Town has become a popular hotspot for their professional, residential, real estate and entertainment needs. However, there are some suburbs that have outshone others with regards to millennials moving in.
Here is a look at where in Cape Town millennials are investing :
Recent Buyers 18 - 35: 39.6%
Topping the list is Claremont. Nestled between Rondebosch, Newlands and Kenilworth - this youthful suburb is serviced by two train stations and is positioned a mere 12 km from the City Centre. Claremont residents are largely comprised of students and young professionals, as this node is in proximity to the University of Cape Town and employment opportunities.
Divided into Upper and Lower Claremont, properties vary in prices and size depending on which half you find yourself in. At present time apartments can be obtained under R1.5m and family homes are on the market for less than R5m.
Recent Buyers 18 - 35: 39.3%
A stone’s throw away from the CBD, the nook of Woodstock is undergoing gentrification and has similarly emerged as a top investment spot for millennials. Rife with a unique and vibrant culture, Woodstock’s property market is predominantly driven by this younger generation of homebuyer - who want to reap the benefits of inner city living within a bespoke setting. With properties starting around the R1m mark - it is easy to see why it has been attracting the millennial crowd.
As the inner city expands and the demand for urban living areas continues to increase - Woodstock becomes more sought-after as it also provides access to the southern suburb train line and has been transformed into a modern hub of activity.
Recent Buyers 18 - 35: 38.3%
Positioned adjacent to the CBD of Cape Town and forming part of the City Bowl, Zonnebloem has become one of the most active areas where millennials are investing in property. Much like Woodstock, this area’s convenient location and transport opportunities have a direct effect on its popularity as a residential destination for a younger demographic.
Here properties generally consist of apartment blocks and flats, with great views of the surrounding cityscape, roughly priced between R1.5m and R5m. Due to the affordability of its real estate, Zonnebloem continues to attract interest from first-time property purchasers.
Other Cape Town suburbs where millennials are investing:
- Vredehoek 37.8%
- Kenilworth 34.9%
- Observatory 34.6%
- Pinelands 32.2%
- Cape Town City Centre 30%
If you are a first-time millennial homebuyer or if you are looking for a home in one or more of these popular Cape Town suburbs, don’t delay - contact Knight Frank today. Our specialised team of property professionals boast years of experience and an extensive stock of Cape Town properties. Knight Frank: connecting people and property, perfectly.
Author: Knight Frank