Cape Town is ranked 23 of the most expensive cities in the world for prime residential property. If we take the average figures for Simonstown then Simonstown is just outside of the top 30. The Wealth Report 2007, published today by UK property company Knight Frank show that homes in London is the most expensive, just ahead of Monaco, followed by New York, Hong Kong and Tokyo.
Prime Atlantic Seaboard homes sell on average for €4500/m², in Simonstown the average for all homes is €1000/m² with the prime Simonstown properties getting more than double that. In London some properties achieve €36 800/m² (345 011/m² ).
According to Mr. Erwin Rode, from Rode and Partners, the comparison is limited and simplistic because exchange rates and differences in income are ignored. I think it depends on what you want to achieve with rankings. You can twist and turn figures but in the end you want a straight forward comparison.
When you purchase an Atlantic Seaboard or Simonstown property you compete in the global world with global buyers. And from this angle his comment becomes less important. Most of the Simonstown properties are bought by outsiders and a significant portion of these buyers are from the United Kingdom. These UK buyers with their different salaries and favourable exchange rates purchase Simonstown properties. They and other like them inflate residential properties across the globe. And it’s good news for Simonstown property owners. You may comment below if you agree or disagree…
It’s great to have you back. Thanks.
