Gautengers Migrate to the Cape

Gautengers head for CT suburbs

Tuesday, 25 March 2008

Reports have been confirmed that there is now a steady migration of homeowners from Gauteng to Cape Town suburbs such as Scarborough, Kommetjie Simonstown and Noordhoek. The phenomenon has been christened 'semigration'. Jawitz Properties franchisee Harold Kolnik says that Joburg families, particularly with young children, are moving to the southern peninsula primarily to escape the high incidences of crime but also to pursue a better quality of life. "Many are loath to actually leave the country given of the disadvantage of the weak rand against currencies in the United Kingdom, the States and Australia, not to mention the trauma of actual relocation. The Cape is a more comfortable option," he says. However, he cautions, the equivalent of a R2m house in Joburg would fetch R5m in the Cape. Buyers have to be prepared to downscale and adjust to the local market. First-time buyers are finding it more difficult to enter the market due to the deterioration in affordability. Lower income groups are experiencing more strain than those in the higher income brackets due to rampant price inflation and the effects of interest rates. "Nevertheless, there's still good entry level value in areas such as Fish Hoek and Milkwood Park and Capri in Noordhoek – all of which are situated in a natural environment and close to the beach. A two-bedroom unit in a development in Fish Hoek would cost from R750k upwards and the average price of a stand-alone house starts at R950k, depending on the area," he says. In the higher priced bracket, suburbs such as Simonstown, Scarborough and Misty Cliffs offer a fantastic lifestyle with good security. Certain properties in these areas are 15% to 20% down on what they were two and half years ago, so now is the time for a buyer to lock into a good bargain. Kolnik says that there is no shortage of stock at present; but homes that are priced above R3m are taking up to five months to sell as opposed to two years ago when a property in this price bracket would sell within two months. The new municipal rates have made many holiday homes, that are marginally used, financially unviable. A number of these are now coming on to the market, many of which are priced at R3m and above. Likewise, rental stock is being sold off as the interest rate bites and landlords find they can no longer subsidise the bond. So, for the first time in a while, rentals are harder to find and those that are available are snapped up. Tighter security is being introduced in many of the newer developments such as De Goede Hoop and Klein Slangkop in Kommetjie. "These areas are still poplar with overseas buyers, but we are noticing a definite slackening off of interest since the Polokwane convention in November. Whereas, a couple of years ago, 40% of properties bought would be from foreign buyers or expatiates returning. "This has now dropped to about 20%. Foreigners are nervous about the political situation, the precarious power supply and the lack of infrastructure maintenance and are looking elsewhere to invest their money," he says. Article courtesy http://www.property24.com If you would like to buy or sell property in Cape Town's False Bay area, please visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Black Buyers Heading South

Black buyers heading south

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PROSPECTIVE black buyers now make up a significant portion of Gauteng residents looking to relocate to Cape Town because of rising crime and violence.

Ian Slot, MD of Seeff Properties for Cape Town’s Atlantic seaboard, central business district and city bowl, says in general there is huge interest in Cape Town property from Gauteng residents.

Two weeks ago, when the group was marketing a residential property for sale in Clifton, it received 30 calls in one morning from Gauteng . Slot says 25% of the calls were from black buyers.

He says it is an interesting new trend because he has been regularly told by black buyers and representatives of black buyers that there is a “hesitancy on the part of black buyers to buy in the Cape”.

“The reason for the hesitancy, we are told, is a perception on the part of black buyers that full integration has not taken place in Cape Town, like it has in the rest of the country.

“The perception of Cape Town is changing and this is demonstrated by the fact that we are getting more black buyers wanting to buy in Cape Town or relocate there. People are wanting to leave Gauteng because of the perception of increasing crime and violence, and this cuts across the colour line.”

He says the number of interested black buyers has started increasing only in recent months.

Last month, auction Alliance Group auctioneers told Business Day there had been a spike in the number of Gauteng residents looking to “semigrate” to coastal areas, in particular Cape Town.

Rael Levitt, CEO of Alliance Group, said at the time that the electricity woes, traffic and a “wave of shocking crimes” were among the factors influencing this trend.

Levitt said there was an impression, right or wrong , among Gauteng residents that Cape Town was safer than Johannesburg and less prone to power cuts and traffic jams.

Slot says the “wave of semigration” is economically defined and not racially or ethnically defined.

“There are significant numbers of black people in the upper middle class, and the black buyers are interested in the same areas as middle-class white buyers.”

He says areas such as Sea Point, where properties are priced from R2,5m to R3m, are popular and that others are also looking at more expensive areas such as Bantry Bay, Clifton and Fresnaye.

“I wouldn’t say the percentage of black buyers among current buyers is as high yet as the percentage of inquiries,” says Slot.

Meanwhile, Jawitz Properties in the Cape’s southern peninsula confirms there has been a steady migration of home owners from Gauteng to suburbs such as Scarborough, Kommetjie, Simon’s Town, and Noordhoek because of crime in Johannesburg.

Harold Kolnik, franchisee for Jawitz Properties in the southern peninsula , says he has seen only a small percentage of interested black buyers.

“Most of what I’m seeing in my neck of the woods is people who have been coming to the area on holiday for a number of years,” Kolnik says.

He says the southern peninsula is one of the Cape’s “best-kept secrets” with “fantastic prices” relative to expensive areas such as Clifton and Camps Bay.

He says black buyers in Gauteng are not aware of the southern peninsula and the value it offers compared with places such as Clifton and Camps Bay, which are far better known.

“Black buyers would find price advantages of 30% to 40% in buying in the southern peninsula, compared with Atlantic seaboard prices,” Kolnik says. - Nick Wilson

If you would like to buy or sell property in Cape Town's False Bay area, please visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.

Dispassionate and harsh economic measures are dispossessing the people of hope and their birthright

“Dispassionate and harsh economic measures are dispossessing the people of hope and their birthright”
2:13AM, Saturday, 12 Apr, 2008
South Africa is already experiencing social unrest due to the acute housing shortage and overcrowded living conditions being experienced by the poorer majority. State housing schemes have all failed to deliver and funds have been misused due to flawed tendering processes, corruption and inept management. Present fiscal policy is hurting and slowing the key sectors that could remedy and stabilize the entire economy. Three budgets ago the government reduced transfer duty in line with its stated policy of assisting the entry level buyer to acquire a home; this has now effectively been negated. Now these buyers are the most vulnerable and most likely to lose their assets. How unfair and crazy is this? The man in the street did not cause the spike in the inflation statistics through reckless spending. The raising of interest rates and the fuel price are to blame. The sectors that should be leading the way are the banking and property Industries It is a known fact that developing nations such as South Africa require high growth in order to close the wide chasm between rich and poor The following Afro-centric remedies need to be implemented almost immediately; Interest rates on all mortgages of one million rand and less should be lowered to a pegged interest rate of not more than eight percent and lowered as things improve. This would be subsidized by the higher end loan sector whom are not in danger of losing their homes in a high interest rate environment. The onerous and unwieldy process should be made more user friendly for the less sophisticated and more informal prospective home owners. Innovative people friendly homes already exist in other parts of Africa that are safer, healthier, enviro-friendly and economically built because its materials are readily available Mozambique villages are charming examples of low cost thermally efficient and flame proof homes that are mostly built with bamboo, latte, mud or gravel that is plastered and very weatherproof. These measures would kick start the property market with the new buyers coming in at the bottom end. Developers could now focus on this sector of the market with its resultant job creation. Energy saving features should be introduced and subsidized by Government & Eskom. It is mystifying why our economists follow the West whom are unable to keep their own economies afloat and are blind to our own unique realities. The west are presently dropping the already low rates to avoid their economies going into recession, but our “experts “have chosen to raise them further. The logic of this is mystifying and most baffling. These public servants are getting paid generous wages from the state coffers so are immune from the hardship of belt tightening. This nation is capable and has achieved great and miraculous things in the past as well as producing some of the finest human beings and leaders on the planet. We are a special people with our own unique destiny and deserve that caliber of leadership to liberate us all. Best of all might we might yet see the end of the Pseudo-Tuscan eyesores that litter our country and rediscover our own African architectural style. Harold Kolnik Principal: Jawitz False Bay Property If you would like to buy or sell property in Cape Town's False Bay area, please don't hesitate to visit www.falsebayproperty.co.za or www.coastalrealestate.co.za.