With an ever increasing footprint in the Western Cape property market, we came across this article by Private Property that is packed full of vital stats for potential property buyers in the Western Cape - and in particular - Noordhoek!
For some, your work may require you to semigrate, for others you've contracted the coastal fever and can't wait to sink your feet into some beach sand, whilst others may simply be looking for a good investment.
According to FNB's Regional Migration Trends report, the Western Cape continues to outperform other provinces in terms of its ability to attract repeat home buyers from other provinces and retain its own.
This north-facing Lake Michelle home with three bedrooms, three bathrooms and two lounges, boasting panoramic views of Chapman’s Peak, was sold for R3.2 million.
According to the report, the big four provinces (Gauteng, Western Cape, KwaZulu-Natal and Eastern Cape) have the lowest percentage of repeat buyers buying in other provinces, with the Western Cape having the lowest percentage of repeat buyers buying elsewhere, recording a total of 12.9% of its total repeat buyers.
Writing in the report, John Loos, FNB household and property sector economist, and Kutlwano Maphapho, FNB statistical analyst, explain that the 2012 level of repeat buyer outflows correlates broadly inversely to relative provincial economic performances over the prior five years (2007-2011), with the major provinces showing both the higher average economic growth rates along with the lower repeat buyer outflow rates.
They point out that the attractiveness of the Western Cape is believed to be the combination of it being the second largest regional economy in South Africa, the second fastest growing economy behind Gauteng, while also being perceived as a great lifestyle region.
While the Western Cape has the best estimated net inflows of repeat buyers, and lowest gross outflow, it is believed that Gauteng may have something of an advantage in terms of attracting younger members of the labour force from other regions who are aspirant 1st time home buyers, according to Loos and Maphapho.
There has been a surge in buyer activity in the Noordhoek area and buyers are prepared to pay a bit more in Noordhoek because they perceive excellent value for money.
While others may be relocating for work purposes, they say a higher percentage of departures of repeat buyers from the larger economic centres are for non-work related reasons, such as retirement and lifestyle.
People living in Noordhoek tend to embrace a rural/beach-holiday lifestyle complete with extensive natural beauty, equestrian trails and exquisite ocean and mountain views.
Most Noordhoek residents run businesses from home or tend to work in the Noordhoek valley or in the Southern Suburbs generally as far as Claremont.
IT'S ABOUT THE LIFESTYLE
The City of Cape Town and surrounding areas has the benefit of a perceived high quality lifestyle compared to many other South African cities, and it is this combination of good economic opportunity along with lifestyle that appears to be proving to be the winning recipe in attracting both wealth and skills to the province in relatively abundant quantities, explain the report writers.
For example, with Gauteng, estate agents point to a significantly lower percentage of departees doing so for work related purposes, suggesting that the province loses less active skilled labour than may meet the eye.
“Furthermore, it is believed that the larger economic centres, especially Gauteng, benefit more from inward migration of aspirant first-time buyers in the early stages of their working life, than do the smaller provinces.”
Loos and Maphapho say the gross outward migration rates of repeat buyers appear to be better correlated to economic growth.
There has been renewed growth in the number of home buyers who are buying again after or around the time of selling their previous property and relocating between provinces.
FNB Estate Agent Surveys reveal an increase in the percentage of sellers selling in order to relocate to another part of the country from lows of 6 percent of total selling at stages around 2009, just after the recession, to between 8 and 9 percent of total home selling in recent quarters.
If you'd like to look into buying property in Cape Town or the larger Western Cape area, drop us a mail and we'll go out of our way to help you!
Read the full Private Property report.
If you'd like to look into buying property in Cape Town or the larger Western Cape area, drop us a mail and we'll go out of our way to help you!
Read the full Private Property report.
