Global Disruptions, Local Opportunities

“It may sound counterintuitive, but I think the relative calm we have here in South Africa — compared to what’s happening globally — means we may actually be in a better position than we give ourselves credit for. Is this a place where you can confidently put your money? I think the answer is a definite yes. Bang for your buck, the South African property market offers enormous value right now.

“Foreign buyers are increasingly purchasing property here, especially in Cape Town. The point is that outsiders are looking at this market and seeing something we should be seeing ourselves. Instead of asking whether it’s sustainable, take the view they take: South Africa is investable.

The Resilience of the Western Cape Market

“The Western Cape property market in particular has shown itself, over multiple cycles and many years, to be resilient — basically going in one direction. And that is proven by the data. I wouldn’t say we’re anywhere near the top. There is still room to grow.

“The rental story from our recently completed developments reinforces this. Our partners, Halo for long-term rental and resales and Perch for short-term rental management, are showing year-on-year income growth of 12 to 13% in short-term rentals — and importantly, this is despite increased supply. The perception is that there’s too much stock out there, but the numbers don’t agree. Yields are holding. Owners are earning more, not less.

Redefining Rental Yield Expectations

“A good example: a furnished two-bedroom at Sunbird in Riverlands recently rented for R28,000 a month. Now, that’s what we said you were going to get at Kingfisher, which is now under construction. If you’re already achieving it at Sunbird, two years ahead of schedule, then that R28,000 isn’t going to be the ceiling at Kingfisher — it’s going to be the midline. That’s a meaningful upward revision of expectations.

“Beyond Cape Town, I think there’s an important shift happening. People are no longer thinking purely about a Cape Town investment strategy — they’re thinking about an investment strategy across the Western Cape. We see that in George, Mossel Bay and Knysna, where growth has been strong and where we’ve deliberately chosen to be active. These nodes are going to be increasingly valuable as that broader Western Cape story takes hold.

A Strategy Anchored in Structural Fundamentals

“At Signatura, what drives every decision is the belief that we are custodians of our clients’ capital. That means we don’t chase fads — we focus on fundamentals: rental yields that are demonstrably strong, limited supply of quality sectional-title stock in hand-picked, high-demand areas, growing international interest, and a domestic market with real depth. These factors aren’t dependent on interest rate movements; they are structural.

“For anyone allocating capital this year, I would say global uncertainty has made South Africa more compelling, not less. The market has runway. Returns are proven. And availability in our current flagship developments is narrowing. To our existing investors — thank you. To those still deciding — the moment is now.”

David Cohen Managing Director, Signatura