Property Advice

Western Cape remains a popular property acquisition destination

Private Property South Africa
Private Property Reporter |
Western Cape remains a popular property acquisition destination

Whether you reference Lightstone’s migration analysis, FNB’s property barometer, or Rainmaker Marketing’s property market report, the results all show the Western Cape continues to be one of the most favoured destinations for property purchases in the semigration trend.

It’s not surprising really when you consider that the province offers what many consider to be higher standards in service delivery, employment, energy efficiency and infrastructure. There is also much consideration given to the healthier lifestyles the region is known for, inclusive of nature walking/hiking, beach and associated activities, some of the country’s most reputable private schools, and lower unemployment rates.

Just Property highlights Lightstone’s data analysis that reveals the proportion of sales between R100 000 and R20-million for the Western Cape grew from 23% in 2019 to 27% last year. Whilst this is enticing, the company does urge buyers considering a move to the province, to do their homework in investigating the best place to live according to the lifestyle required.

This is particularly pertinent to Cape Town itself, where, says Graham Ross, manager of Just Property Blouberg, factors such as traffic congestion should not be ignored. “However, The State of Cape Town Central City Report, published in 2023 noted that in 2022 there was a significant increase in the number of CBD residents from elsewhere in South Africa, from 35%-44,6%. New developments under construction in the CBD respond to this statistic as many potential buyers are seeking to be close to the base of their operations in the city.”

Those who prefer not to be as centralised, but still wish easy and quick access to beachfronts, should be looking at areas along the Western Seaboard, which are consistently showing good growth says Ross. “Blouberg, Melkbosstrand and Sunningdale are attracting many buyers, especially given these areas are serviced by the MyCiti buses.”

For those seeking a more relaxed or countrified environment there are, however, many options outside of the CBD and surrounds, says Talbot Sadler, franchisee of Just Property Protea. “Buyers should expand their search to Paarl, Stellenbosch, and Somerset West, which offer better value for money in terms of residential options.”

The latter two towns are mentioned specifically by Rainmaker Marketing that says properties are selling at 54% (Stellenbosch) and 45% (Somerset West) to buyers over age 50. Head of market research for the company, Brenda Padayachee, recently stated in the media that properties within estates in Stellenbosch command higher prices, with sectional title units and freehold homes seeing premiums of 12% and 35% respectively, when compared to properties outside estates.

Garden Route towns are also considered desirable. Here towns like George, Knysna, Plettenberg Bay, Sedgefield and Wilderness are great options if you work remotely, says Kylie Botes, manager of Just Property Knysna and Sedgefield. “In 2021, sales in the Garden Route rose from 6 693 to 9 857. The exodus to small towns continued in 2023, with Lightstone noting that in terms of residential sales activity, it is smaller towns which have benefited rather than the large metros. These smaller towns also have far fewer traffic delays than the major cities, and all amenities are within a 15 to 20 minute drive.”

Rentals in the region are also doing well, as some ‘semigrators’ prefer to test the water before committing to a property purchase. Some even have no choice but to rent given, limited sales stock. Also, says Graham, “there is little indication of prices slowing down in the Western Cape when compared to the rest of the country.”

Graham recommends that buyers or tenants need to build a good relationship with local agents to avail of early notification when a new listing or rental becomes available. “If you are able to buy, do so as soon as possible,” he says. “The longer you wait the more property may cost you at a later date.”

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