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
Characters remaining

    Latest Property News
    • 20 Mar 2018
      Located close to the fast growing Fourways precinct, Dainfern continues to attract local and international interest from buyers seeking a secure lifestyle with affordable entry price of approximately R3 million.
    • 20 Mar 2018
      Property owners in the Durban CBD are addressing the affordability challenge that faces many prospective tenants in their area – and reconfiguring the inner city rental market in the process.
    • 20 Mar 2018
      One of the most misunderstood concepts in the process of selling a property is an exclusive or sole mandate.
    • 19 Mar 2018
      If a landlord opts to use a managing agent for the rental of his or her property, the inspection process can be easier as the agent is not emotionally involved and will certainly have concluded an in-depth inspection report in the interests of all parties.
    • 19 Mar 2018
      We all wish we could have the cheat sheet for selling a property – a simple Ctrl+Shift+C code that will magically secure an offer on your home in an instant. Though it is not possible to provide you with this cheat code (sadly, reality does not come with such perks), it is possible to provide you with a list of the most common blunders some of your neighbours have committed in their efforts to sell their homes
    • 19 Mar 2018
      Although property technology is now widely accepted as an established trend, especially in the international real estate arena, the industry has been cautious to advance and smaller markets like South Africa are still hesitantly dipping their toes in the water.
    • 16 Mar 2018
      Strange as it may seem, there is a stock shortage looming now in the luxury sector of the Johannesburg property market, because astute buyers have for the past few months been hurrying to snap up high-end homes being offered at excellent prices.
    • 16 Mar 2018
      No one likes having to claim but having insurance for your household contents is vital, and at the start of a new financial year, homeowners either applying for new household insurance or revising their existing insurance should take a comprehensive inventory of their possessions and keep track of the total value.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us