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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. 
 


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