The group continues to see increased sales and rentals in the Western Cape compared to other regions as many households in provinces like Gauteng and KwaZulu-Natal sell their properties to move to the Western Cape.
Jonathan Kohler, founder, and CEO of Landsdowne commented: “Semigration remains one of the key drivers in the Western Cape property market. Increasingly, more people, and businesses move to the region as it is perceived to have better run municipalities, have reduced load-shedding stages, and offer unrivalled lifestyles away from the hustle and bustle of Gauteng for example.”
Semigration – the movement of people from one province or city to another has been a trend even before the Covid-19 pandemic in 2020. With flexible working models enabling people to work from anywhere, many people saw this as an opportunity to move to other areas.
Data from Lightstone shows that the Western Cape continues to benefit from semigration as ratepayers seek better-governed municipalities with good infrastructure, governance, and unrivalled lifestyles. During 2019 and 2023, sales of properties priced between R100 000 and R20 million rose from 23% to 27%, while Gauteng saw sales fall from 43% to 29%. The Western Cape also recorded the highest increase in sales activity in smaller towns compared to Gauteng and KwaZulu-Natal.
Landsdowne is a sales and rental agency with over 35 000 apartments and freestanding clusters under management. As demand for property increases, the group reported successful property sales in areas including Blouberg, Sandown, Parklands, Parkland Norths and Sunningdale.
Kohler said these areas attract buyers and investors due to the lifestyle offering with sandy beaches, spectacular views of Table Mountain, good infrastructure, various amenities including schools, hospitals and medical facilities, entertainment, and shopping centres.
“Buyers are increasingly purchasing properties in secure estates and gated communities offering ‘quieter’ lifestyles to raise their families. We expect this trend to continue into the foreseeable future,” Kohler added.
In these suburbs, the group has sold one-bedroom apartments priced from R795 000 in Cape Town and achieved up to R3.195 million for three-bedroom spacious family homes in Sunningdale. Some of the properties have a cottage or flatlet for additional income.
Kohler said that it’s currently a buyers’ market and savvy purchasers and investors are snapping up properties that are priced in line with market conditions. Though interest rates are still high and keeping many potential buyers out of the market – those buying in the Western Cape are now getting better value for money.
He said the price a seller achieves in Gauteng may not necessarily be enough to buy the same house in the Western Cape. However, when the market improves, the Western Cape will likely recover more quickly than Gauteng.
“Capital appreciation or how much your property will increase in value annually is important when buying property. Apart from location, buyers should seriously consider areas expecting a lot of development in the next few years, as this will drive prices” Kohler advised.
Rentals
Kohler said high interest rates have benefitted the buy-to-let market. Demand for rental properties is high as many people cannot afford to buy property now. In some instances, this has resulted in rental growth, especially in the Western Cape where demand exceeds available supply.
According to the PayProp Rental Index for the fourth quarter of 2023, the Western Cape recorded year-on-year rental growth of 3.9%. Average rentals reached R10 118 – a R382 increase from 2022 – making the Western Cape the most expensive province to rent property. Tenant risk is also low with more than half of applicants falling within the minimum-risk bracket compared to 37.7% nationally.
Kohler said one-bedroom apartments in Cape Town make for a great investment with net rental yields of about 10.8%. “Generally, these types of properties are great buy-to-let property investments in South Africa as they are affordable and offer good value for money.”
In Sandown for example, we have successfully let one-bedroom apartments priced between R8 200 in established complexes to R11 500 per month for a unit in a new development, he said.
“As the search for better lifestyles continues, we expect the Western Cape will be a beneficiary of semigration – this will help increase sales and rental activities in the region,” added Kohler.
READ: Top 7 items that get damaged when moving and how to protect them
An article published on Property24 on May 25, 2022, features Ana Roberts of Just Property Upper Highway, who explains that another great benefit of downscaling is that small spaces require less furniture - a few great statement pieces allow for simple, minimalist décor and a beautiful, welcoming home at a fraction of the cost of furnishing a big house. And the cleaning is a breeze!
Less clutter equals less stress, and isn’t that what we are all looking for now?
Tips for cosy-home hunting:
Location, location, location - You want to remain close to your family and friends, and have ease of access to stores and other amenities such as doctors, hospitals etc. Narrow your search to areas that tick these boxes.
What are your deal breakers? Does the home offer the main assets that are important to you, for example, a good kitchen, nice family space, shower etc?
Current wants vs future needs - If you are downsizing because the children have moved out and you are getting older, consider a single story with the ease of access rather than a property with stairs that may cause a problem later.
Growing pains - Will you be able to handle the upkeep of a big garden, or is it time for something smaller that is more manageable? Will your pets cope with a smaller space; is there somewhere nearby where you could walk them?
Fit for purpose - Will your favourite furniture fit in the new space? Make a list of every piece with which you can’t part. Take measurements. Then take a tape measure with you when you start narrowing down your list of potential new homes.
Storage war - Is there enough cupboard space in the bedrooms and the kitchen? Do you need outside storage too?
Peace of mind - Check the security features of each property you visit. Find out how safe the area is and what security is available. Ask the neighbours, chat to the local police, and phone a security company that focuses on the neighbourhood.
Guest appeal - Consider how many bedrooms you will need going forward - if your kids have all moved out of home, you may only need one spare room for when they or your friends come to stay.
Paper trails - Remember to ask for compliance certificates, even those that aren't required in your province (for example, gas installations and solar geysers should come with a compliance certificate - if something goes wrong and you don't have one, your insurers may refuse to replace the geyser, or cover damage caused by a gas issue).
Complex questions - If you are moving into a complex or an apartment, be aware that there may be the added expense of levies, clubhouse fees and/or security. Ask about historical escalation rates and request a copy of the body corporate rules (if applicable.)
Ask your neighbours if there are any noise issues, does sound travel through the walls and ceiling? How old is the plumbing, the lifts etc - upgrading such items is very expensive and you’ll have to contribute. What parking is available for guests?
Find out how much bond you qualify for with the Property24's easy-to-use calculator tools
Home-Dzine shares the best tricks when moving out for the first-time
Whether you're moving out of your house with your roommates or with your partner, the need for landing on the necessary habits of better planning never dies.
Here is a list of things you should apply when you start living independently.
1. Bring changes to your lifestyle
Living in your parent's house is different, as there's no burden of responsibilities on your shoulders. But when you decide to live alone in your own home, a bunch of duties pops up. But don't worry; if you keep your lifestyle on track, there will be no milestone that you can't achieve.
2. Take a look of your finances
One of the most critical parts about leaving your house for the first time is to deal with your every-day increasing expenses. All you've to do is to plan and finance your future life. But the question that knocks out your head is how you're going to do all this? Make a budget to figure out your expenses. Buy everything ranging from your utility needs to furniture should be in your budget.
The best way is to note all your expenses for the month on a notepad and spend your money accordingly. Plus, keep water, petrol, and electricity in control as it also influences the budget.
3. Choose the best location
The choice of location for your future house will influence your troubles a lot. No doubt it's relatively easy to compromise with your needs, but still, you've to buy reliable real estate where all your needs are on your doorstep.
4. Find yourself a permanent Job
Taking a brave decision to move out of the house for the first time isn't appropriate unless you have a steady job pushing you up financially. As you're going to face millions of problems economically and emotionally, only a permanent job resolves all your matters. It's the best advice to have a steady job before move out of the house.
5. Always have a plan B
Not everyone who's moving out of the house is the one who gives a potential setback to the upcoming problems. There're chances that you may get fail in building yourself up. But don't bother about it much; having a plan B when moving out of college is the only thing you can do to save your living.
6. Go for renters insurance
The unfortunate time comes without informing. Thus, the best way to push yourself up in such circumstances is to have renters insurance. Choose the policies which have low monthly payments or those that offer full replacement coverage.
Stand On Your Own
Shifting in your house by moving out for the first time seems like a daunting task. But you shouldn't get confused after reading the tips we've talked about above. Adopt them in your life and see your development in days.
