Nearly 200 years old and one of Cape Town’s oldest suburbs, Observatory is known for its history and for the vibrant student atmosphere, while accommodating people from all walks of life. Where the streets are lined with a mix of Victorian-era houses and colourful murals, reflecting the area’s artistic spirit.
Tall, leafy trees provide shade as locals stroll to quirky coffee shops, bookstores, and vintage shops that give the area its bohemian vibe. The energy here is alive, with students from nearby universities mingling with long-time residents, artists, filmmakers, producers, poets and musicians. “It’s quite an eccentric neighbourhood, so you meet some very very cool people,” states Graedon Boswell, the area specialist for Observatory at Tyson Properties Western Cape for the last four years. Graedon has sold 13 units in Observatory with a combined value of R32 000 000 in the last six months.
On the flip side, Observatory isn’t just a haven for artists and creatives, it also attracts a diverse group of young professionals, including engineers, doctors, and lawyers who call this neighbourhood their home Graedon pointed out. The area’s proximity to amenities like Groote Schuur Hospital and the University of Cape Town (UCT) makes it an ideal location for medical professionals and academics.
“I’ve pretty much grown up all over Cape Town, but what I love most about Observatory is its people. You’ve got all walks of life here,” Graedon commented.
Observatory has been a popular choice for students due to its proximity to UCT, but it has evolved beyond its student roots. Once mainly associated with student life, the area has gradually transformed into a more suburban neighbourhood. Today, young professionals and families are drawn to its apartments and modern developments, adding more diversity to the community. Its blend of affordability, culture, and convenience makes it ideal for those still figuring out their place, offering a unique balance of student energy and a growing suburban appeal.
“Personally, I think Obs (Observatory) is a place for everybody,” said Graedon.
It’s a great place for people looking to buy their first home. If you are in your mid-to-late twenties or early thirties, Observatory is a great place to buy your first home.
Graedon describes Observatory as a “20-minute suburb”, meaning that most popular destinations in Cape Town, like the airport or neighbouring suburbs, are about a 20-minute drive away.
Observatory is a really great place to live if you are looking to buy your first home. The barrier to entry is fairly low, roughly starting below R3.5 million explained Graedon.
Observatory is a great investment because of how central it is to everything and later on when you want to take the next step in your life, selling wouldn’t be a challenge since it’s a very good investment base. There is consistently a high demand due to its ideal location and proximity to the University. Therefore, the rental income in Observatory is exceptionally strong.
“When I was a student here, I paid a couple of thousand, whereas now rent goes for R7 000 – R8 000 a room. Some houses even go for R30 000 a month,” states Graedon.
In terms of sales, a general entry point for a house in Observatory is around R1.6 – R1.8 million, but on average you can expect about R2.5 – R3 million.
Graedon emphasized that the recent interest rate drop is likely to boost real estate activity in Observatory, as the area already has high demand from first-time buyers. The lower rates will make it more affordable, encouraging more buying and selling in the neighborhood.
“People always say ‘if you had money, where would you invest?’ and I always say Observatory,” states Graedon Boswell.
