17 minutes from Cape Town CBD, there are 2-bedroom flats for R700 000

The Cape Town property market is booming. Investors are eager to get in on the action.

But for bargain-hunting buyers hoping to become homeowners, the options are quickly dwindling.

Now, a handful of properties are on the market starting at R600 000.

These are central suburbs, about 20 minutes from the City Centre.

Flats in sought-after Cape Town suburbs hit the market

Three 2-bedroom flats are available in Kenilworth and Lansdowne, central suburbs sandwiched between Kenwyn and Claremont.

The only catch is that their price tags aren’t set in stone; instead, they’re reserve prices at auction.

But in Cape Town, buying at auction could become the new way for frustrated buyers to get affordable family units.

In Kenilworth, the 2-bedroom flat has a R735 000 reserve, according to Private Property. It’s a compact 57-square-metre flat on Punters Way, about a 4-minute drive to Kenilworth Centre.

It’s located in a beautifully maintained complex.

However, the Kenilworth flat includes R44 172 in levy debt in addition to rates and taxes debt. There are no guarantees that this debt will be covered by the auction price.

In Lansdowne, one 2-bedroom flat has a lower reserve at R600 000.

However, another flat in the same gated complex has a R700 000 reserve and R12 567 levy arrears, according to Absa Sale in Execution.

This flat last sold in 2021 for R1.29 million.

However, a recent sale shows a flat within the same complex sold for R750 000.

Sectional titles in Lansdowne also aren’t doing as well as they once were.

According to recent data from the Western Cape Deeds Registry, the average sale price for sectional titles in Lansdowne is down 1.57% since the start of the year.

Last year, the average sale price for a sectional title in Lansdowne was R950 000; by October of this year, it was R935 000.

But Kenilworth isn’t struggling to maintain property values. Instead, sectional titles are up 12.43% since last year.

A flat sold at auction for R735 000 in Kenilworth will only get 57% of its market value, as the City of Cape Town’s General Valuation Roll places the Kenilworth flat at R1.32 million.

Not an affordable property the average buyer can purchase

When the hammer falls at auction, buyers will have days to pay the bid price plus fees and commission.

Unfortunately, the auction process means many of Cape Town’s eager homeowners may not be able to get in on the action.

But those who can get bridging loans or other financial instruments could leverage these bargains as the first signs of an economic downturn become apparent.