select
|

Western Cape retirement mecca of SA

It’s no secret that the Western Cape’s residential property market is outperforming every other province in the country and recent data suggests that it’s predominantly due to migration from other provinces.

A new report by Lightstone Property analysts indicate that there has been a significant increase in senior citizens investing in property in the Western Cape; “In 2005 when Lightstone started tracking the numbers, 22% of residential properties that transacted in the province were purchased by buyers over the age of 65. This has increased to 35% in 2016”. 
 
According to the latest data 73% of buyers purchasing property in Eastford Downs, Knysna, 70% of buyers in Helderberg Village, Somerset West and 64% in Klipfontein, Malmesbury are over the age of 65. “We believe that the perception that the Western Cape government functions better and the surge of secure estates and sectional title developments (which are seen to be more secure and require less maintenance) in areas
like Somerset West are major drawcards for people looking to retire”, says Bruce Swain, CEO of Leapfrog Property Group.
 
These figures are likely also boosted by the fact that the appeal of the Western Cape has been greatly enhanced over the past decade or so. John Loos, FNB Household and Property Sector Strategist, reveals that; “The province has developed a highly skills-dependent service-driven economy and the 2nd-highest Per Capita Gross Domestic Product (GDP) behind Gauteng”. Coupled with an appealing lifestyle it’s easy to see why Cape Town has the lowest percentage of repeat buyers leaving the province, as well as the strongest net inward migration from other areas.
 
Giel Viljoen, Principal of Leapfrog Property Group, Stellenbosch, reveals that; “In the past 6 months we have seen a lot more people from other provinces, mostly Gauteng and Pretoria, looking to buy here. Unfortunately, what they don’t realize is that prices here are a lot higher.
 
The over 50’s are realizing that they should scale down and, because of the sizes of the plots realize, that they will have to face stairs - if you build on a 140 – 400m2 plots with 50% covering you have to go double storey. This is the case with most estates named Welgevonden Estate, Capolavoro Estate and Nooitgedacht Estate. In these estates prices range anything from R 2.2 million now to R 3.8 million. Then your plot sizes varies from 140 -500m2 with house sizes ranging from 130 – 250m2 average”, Viljoen explains.
 
Brandwacht Aan Rivier, Aan De Weber, Digteby Estate and Longlands Estate are more exclusive estates and Viljoen has seen more and more over 50’s from other provinces buying here; property prices in these estates range from R4 million to R10 million, depending on the location and offering. Location plays a big role in Stellenbosch with Brandwacht Aan Rivier achieving excellent growth as it is close to all amenities. “We have seen that security plays a massive role when these buyers are looking for properties”, shares Viljoen.
 
“We’re also noticed a slight problem in that buyers from other provinces come wanting to purchase property here, but still have to sell their homes and struggling to sell them in time. In Stellenbosch correctly priced estate properties (up to about R 10 million) will sell within three months on average, so it’s critical for buyers to time their property sales correctly”, explains Viljoen. 
 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK