Seeff Property Group said the success of the Cape Town property market was built on a number of pillars such as good governance, the location, attractions and tourism, and excellent universities.
The group added that since there was a lot of competition for a good school or university, living close to such an establishment had become sought after and that traffic pressures and lack of time also made living close to a good school or university a top priority.
According to Samuel Seeff, chairperson of the group, buyers would pay a premium of 20 percent to 40 percent for a location close to a top-ranked school and areas close to top schools and universities also tended to fare better during a market downturn.
Seeff said the Cape’s top schools were also a big attraction for semigrating buyers and foreigners from across the continent and globe.
He said a recent Lightstone study showed that more foreigners (predominantly expats) were buying property in the country, mainly centred on areas with top schools such as Rondebosch, Sea Point, Tamboerskloof, Century City, Sunningdale and Table View.
“South Africa is also a major hub of top schools and universities for the rest of Africa. It is common for the children of wealthy people from other African countries to attend top schools in, for example, Sandton and Johannesburg, but also in Cape Town."
He said UCT, Stellenbosch University, University of the Western Cape, Cape Peninsula University of Technology and a range of tertiary and vocational colleges were all a big drawcard for the city.
James Lewis, managing director for Seeff Southern Suburbs, Hout Bay and Llandudno, said a study done by Seeff showed that Cape Town’s southern suburbs were home to about 160 schools, the highest concentration in the country and including the highest concentration of top-performing schools.
Lindsay Beck, Pam Golding Properties area manager for the southern suburbs,said that in these suburbs there was considerable competition for a place at popular schools.