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
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
        
    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