The zoom boom driving the demand for property in Hermanus
Hermanus is one of the top destinations for Gauteng homeowners moving to the Western Cape to enjoy a better quality of life near the coast, says Carl Coetzee, CEO of BetterBond.
“The shift to working from home has made it possible for families to relocate without having to worry about being close to an office. So we are seeing a resurgence in semigration and renewed interest in bond applications for homes in large and smaller towns outside of major cities.” BetterBond’s application volumes for the Western Cape increased by 27% for the 12-month period ending in November.
Hermanus is one of the province’s larger towns benefiting from increased semigration in recent months, says Jaco van der Merwe, of Greeff Properties on the Whale Coast. The “Zoomers”, who work predominantly from home or remotely, entered the property market in June last year and started buying, says Van der Merwe. “And this trend has not stopped.” The Zoomer profile is typically from Gauteng and aged between 35 and 55, he adds
According to a recent Lightstone report, semigration from Gauteng is at its highest in seven years, with 35% of those leaving the City of Gold opting to settle in the Western Cape. These buyers cite a desire for a safe, relaxed lifestyle as among their main reasons for relocating. Most of these buyers move to large towns like Hermanus, rather than the Cape Town metro. Lightstone reports that buyers aged between 49 and 64 make up the largest cohort of people relocating from Gauteng.
Van der Merwe notes that while the traditional semigration of retired or older buyers aged between 55 and 70 has not abated. Zoomers able to work from home while enjoying the idyllic lifestyle the Whale Coast has to offer accounted for most of the sales activity in the past year and, says Van der Merwe, the trend will continue..” According to Lightstone, buyers between the ages of 36 and 49, make up the second largest group of people relocated from Gauteng, and most of them are choosing to settle in the Western Cape.
But Greeff has also seen interest from buyers who intend to semigrate in the future, and who have bought property in Hermanus because of the current record-low interest rates. “They bought these properties at 60 to 90% loans, furnished the houses and are renting them out on Airbnb.” Not yet in a position to retire, they nonetheless have made the most of the favourable lending environment to invest in property, explains Van der Merwe. Data from credit bureau TPN shows that the ratio of investment properties in Hermanus has held steady at 45%, making up the bulk of homeownership in the town.
The value of sectional title properties in Hermanus has increased in recent months as the demand for secure lock-up-and-go living in the popular seaside town has intensified. According to TPN, the average value of a sectional title property increased from just over R1.4 million in the first quarter of 2020 to almost R2.3 million at the end of 2021. That being said, it is still possible to buy a sectional title property as a first-home buyer in Hermanus, with the average sales price in 2021 at R1.2 million. Hermanus is also home to several lifestyle estates, a popular choice for buyers moving to the Western Cape from Gauteng. Freehold prices have also shown steady growth, from just under R1.5 in 2019 to just over R3 million, according to TPN’s data.
“Like many of the emerging Zoom towns, Hermanus offers similar amenities and attractions as a city, but within a coastal setting. Cape Town is less than two hours’ drive away, and Hermanus boasts a choice of excellent schools, medical facilities and recreational opportunities,” says Coetzee. “No longer just a holiday stop, Hermanus and other towns in the Western Cape have become popular destinations for permanent residents wanting a lifestyle change.”
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