The Cost of the Great Trek to THE CAPE

Figures show that the migration of residents from other provinces to Cape Town is steadily increasing, but many buyers are facing a harsh realitycheck as they.come to realise just how much more expensive property is on average in the Western Cape — and how much less they’re likely to get for the sale price they achieve upcountry. Text Er Images @ Supplied / The reverse Great Trek — this time happening across the raciaL spectrum — has been steadiLy gaining momentum over the past four years, according to Lew Geffen, Chairman of Lew Geffen Sotheby’s InternationaL ReaLty. He estimates that more than 30% of his.company’s sa[es in Gauteng are on behaLf of homeowners reLocating to the Western Cape. JiLL LLoyd, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Daremont and Lynfrae in Cape Town, says a few years ago the growing interest from upcountry buyers was mereLy an emergent trend making up a fraction of the LocaE market. “However, it has now become a steady flow which shows no signs of abating, as more and more peopLe are drawn to the reLaxed outdoor LifestyLe, reLiabLe municipaL service deLivery and perceived safety of the Western Cape.”

“However, it has now become a steady flow which shows no signs of abating, as more and more peopLe are drawn to the reLaxed outdoor LifestyLe, reLiabLe municipaL service deLivery and perceived safety of the Western Cape.” LLoyd says that despite the migration becoming.commonpLace, she finds that a significant number of buyers from other provinces are stiLL surprised by the difference in property prices in.comparabLe suburbs. “Some peopLe have a hard time.coming to terms with the reaLisation that they have soLd their mansion in Johannesburg but wiLL orgy be abLe to afford a smaLLer, more modest home for the same money in Cape Town.” Geffen agrees: “ALthough many peopLe are generay aware that property is more expensive in the Cape, the reaLity can be a nasty shock, especiay when Looking at homes in the most soughtafter Cape Town suburbs which have been reaLising record prices weLL above nationaL averages for.comparabLe homes. The Latest FNB property barometer, which incLudes the first quarter of 2016, has reveaLed that the Western Cape is once again the dear market Leader, emerging streets ahead of the other provinces. Most notabLe is that, in contradiction to market forecasts of singLe digit growth in house prices, the Western Cape defied current The Cost of the Great Trek to THE I la A Bantry Bay — R58 million This

Most notabLe is that, in contradiction to market forecasts of singLe digit growth in house prices, the Western Cape defied current The Cost of the Great Trek to THE I la A Bantry Bay — R58 million This triplestorey designer villa on the exclusive Atlantic Seaboard is on a 1,482m2 plot and offers five bedrooms and five bathrooms. trends by reflecting an impressive yearonyear price growth of 12% measured over ten years, which is aLmost twice the nationaL average of 6.8 %.” The report cites IHS GLobaLinsight, which estimates over the tenyear period from 2005 to 2014 the Western Cape achieved the fastest growth of South Africa’s nine provinces, narrowLy ahead of Gauteng and KwaZuLuNataL, averaging 3.4 % per year. FNB Property Economist John Loos beLieves the Western Cape’s reLativeLy superior residentiaL market performance is due in part to its greater Land constraint.compared to, for exampLe, [andLocked Gauteng. The perception of the Western Cape as having a good provinciaL and Cape Town metro government couLd have been another positive factor impacting on the house price growth, in his view. “The same goes for the province’s.combination of a good LifestyLe as cities go, aLong with a strong servicesdominated economy that provides steadlly improving business and empLoyment opportunity,” says Loos. Recent Lightstone reports aLso confirmed the Cape’s dear status as market Leader when its research determined that Cape Town is not onLy home to seven of South Africa’s ten weaLthiest suburbs, it aLso boasts seven of the county’s ten most expensive streets. Steve Thomas, Franchise Manager for Lew Geffen Sotheby’s InternationaL ReaLty in Fake Bay and Noordhoek, adds: “Ironically, Cape Town’s market strength is being boosted by the burgeoning number of upcountry investors who now account for up to 20 % to 30 % of buyers in the most soughtafter areas, increasing during the peak of the summer hoLiday season.” Vivienne GottLieb, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Sea Point, Green Point and De Waterkant, says: “Not orgy are prices higher in Cape Town, but pLot sizes are aLso generally around 25 % smaller than the nationaL average because of the Limited avallabLe space between the ocean and the mountain. Areas near the ocean Like Fake Bay and the AtLantic Seaboard are especially Limited as the same topography that affords them their spectacuLar views aLso severeLy restricts deveLopment.” Karen Bosman, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Benmore, HurLingham Manor and Parkmore in Johannesburg, says that she has seen a notabLe increase over the past year, with around 25 % of her sellers now migrating south. “The majority are upper LSM professionak with schooLgoing chiLdren who are seeking a better LifestyLe for their famiLies. Many of my dients tray& to Cape Town reguLarLy and are aware that they are not going to be abLe to repLace the standard of home they enjoy in Johannesburg, but most feeL that the tradeoff is justifiabLe.”

Pretoria residents appear to be Less hasty to join the mass migration, with onLy around 10 % of sellers in soughtafter suburbs Like BrookLyn and MenLopark moving out of the province. So says Karin Petzer, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty, who adds that most of her dients who move to Cape Town prefer to rent initially to allow them time to get to know the city before deciding on an area in which to buy property. CharLene Leibman, Area SpeciaList for Lew Geffen Sothebys InternationaL ReaLty in Cape Town, Green Point — R19.25 million This threebedroom, threebathroom penthouse with wine celllar, private pool and pyjama lounge,.commands 360degree views. Senderwood, Bedford Park and St Andrews, says: “We are aLso seeing an increasing number of migrating seLLers retaining a smaer property in Johannesburg to accommodate husbands who stiLL work in Johannesburg and.commute weekLy.” According to Numbeo, the worLd’s Largest database of usercontributed data about cities and countries worLdwide, the cost of sectionaL titLe properties in Cape Town averages between 15 % and 37 % higher than in Johannesburg — depending on where you buy. FNB’s estimates put the Western Cape as the province with by far the strongest net inflow of repeat home buyers from other provinces. In fact, since 1999 the province has had a positive net inflow of repeat buyers. There are aLso fewer repeat buyers Leaving the province, according to Loos: “The Western Cape has deveLoped a.competitive advantage, which appears to be reflected in it having the Lowest percentage of repeat buyers Leaving the province (7.3 % of totaE repeat buyers), as weLL as by far the strongest net inward migration rate of repeat buyers from other provinces.” With the Western Cape’s market strength widening the gap between property vaLues in other provinces, Geffen advises that thorough research is essentiaL for upcountry buyers to achieve maximum bang for their buck. “It is essentiaL for reLocating home seekers to do their homework before the finaE decision to move is even made. Property prices are higher in the Cape but there is stiLL vaLue to be found and, aLthough the advantages of Living here do outweigh the benefits of an extra reception room and enormous garden,.comprehensive research wiLL reduce the tradeoff by determining which areas and property options offer the best vaEue according to their needs.” Geffen concLudes: “I don’t foresee the growing influx of upcountry buyers abating any time soon as, over and above the LifestyLe advantages, investors aka benefit financiaLLy. Cape Town residentiaL property vaLues have consistentLy outperformed the other major centres in South Africa for a decade and it is now considered the most stabLe market in the country.”! Johannesburg, Robindale — R1,499 millio Most suburbs of Johannesburg will offer more house for your money than Cape Town, such as this threebedroom house in the north of Johannesburg.

“However, it has now become a steady flow which shows no signs of abating, as more and more peopLe are drawn to the reLaxed outdoor LifestyLe, reLiabLe municipaL service deLivery and perceived safety of the Western Cape.” LLoyd says that despite the migration becoming.commonpLace, she finds that a significant number of buyers from other provinces are stiLL surprised by the difference in property prices in.comparabLe suburbs. “Some peopLe have a hard time.coming to terms with the reaLisation that they have soLd their mansion in Johannesburg but wiLL orgy be abLe to afford a smaLLer, more modest home for the same money in Cape Town.” Geffen agrees: “ALthough many peopLe are generay aware that property is more expensive in the Cape, the reaLity can be a nasty shock, especiay when Looking at homes in the most soughtafter Cape Town suburbs which have been reaLising record prices weLL above nationaL averages for.comparabLe homes. The Latest FNB property barometer, which incLudes the first quarter of 2016, has reveaLed that the Western Cape is once again the dear market Leader, emerging streets ahead of the other provinces. Most notabLe is that, in contradiction to market forecasts of singLe digit growth in house prices, the Western Cape defied current The Cost of the Great Trek to THE I la A Bantry Bay — R58 million This triplestorey designer villa on the exclusive Atlantic Seaboard is on a 1,482m2 plot and offers five bedrooms and five bathrooms. trends by reflecting an impressive yearonyear price growth of 12% measured over ten years, which is aLmost twice the nationaL average of 6.8 %.” The report cites IHS GLobaLinsight, which estimates over the tenyear period from 2005 to 2014 the Western Cape achieved the fastest growth of South Africa’s nine provinces, narrowLy ahead of Gauteng and KwaZuLuNataL, averaging 3.4 % per year. FNB Property Economist John Loos beLieves the Western Cape’s reLativeLy superior residentiaL market performance is due in part to its greater Land constraint.compared to, for exampLe, [andLocked Gauteng. The perception of the Western Cape as having a good provinciaL and Cape Town metro government couLd have been another positive factor impacting on the house price growth, in his view. “The same goes for the province’s.combination of a good LifestyLe as cities go, aLong with a strong servicesdominated economy that provides steadlly improving business and empLoyment opportunity,” says Loos. Recent Lightstone reports aLso confirmed the Cape’s dear status as market Leader when its research determined that Cape Town is not onLy home to seven of South Africa’s ten weaLthiest suburbs, it aLso boasts seven of the county’s ten most expensive streets. Steve Thomas, Franchise Manager for Lew Geffen Sotheby’s InternationaL ReaLty in Fake Bay and Noordhoek, adds: “Ironically, Cape Town’s market strength is being boosted by the burgeoning number of upcountry investors who now account for up to 20 % to 30 % of buyers in the most soughtafter areas, increasing during the peak of the summer hoLiday season.” Vivienne GottLieb, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Sea Point, Green Point and De Waterkant, says: “Not orgy are prices higher in Cape Town, but pLot sizes are aLso generally around 25 % smaller than the nationaL average because of the Limited avallabLe space between the ocean and the mountain. Areas near the ocean Like Fake Bay and the AtLantic Seaboard are especially Limited as the same topography that affords them their spectacuLar views aLso severeLy restricts deveLopment.” Karen Bosman, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Benmore, HurLingham Manor and Parkmore in Johannesburg, says that she has seen a notabLe increase over the past year, with around 25 % of her sellers now migrating south. “The majority are upper LSM professionak with schooLgoing chiLdren who are seeking a better LifestyLe for their famiLies. Many of my dients tray& to Cape Town reguLarLy and are aware that they are not going to be abLe to repLace the standard of home they enjoy in Johannesburg, but most feeL that the tradeoff is justifiabLe.”

Pretoria residents appear to be Less hasty to join the mass migration, with onLy around 10 % of sellers in soughtafter suburbs Like BrookLyn and MenLopark moving out of the province. So says Karin Petzer, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty, who adds that most of her dients who move to Cape Town prefer to rent initially to allow them time to get to know the city before deciding on an area in which to buy property. CharLene Leibman, Area SpeciaList for Lew Geffen Sothebys InternationaL ReaLty in Cape Town, Green Point — R19.25 million This threebedroom, threebathroom penthouse with wine celllar, private pool and pyjama lounge,.commands 360degree views. Senderwood, Bedford Park and St Andrews, says: “We are aLso seeing an increasing number of migrating seLLers retaining a smaer property in Johannesburg to accommodate husbands who stiLL work in Johannesburg and.commute weekLy.” According to Numbeo, the worLd’s Largest database of usercontributed data about cities and countries worLdwide, the cost of sectionaL titLe properties in Cape Town averages between 15 % and 37 % higher than in Johannesburg — depending on where you buy. FNB’s estimates put the Western Cape as the province with by far the strongest net inflow of repeat home buyers from other provinces. In fact, since 1999 the province has had a positive net inflow of repeat buyers. There are aLso fewer repeat buyers Leaving the province, according to Loos: “The Western Cape has deveLoped a.competitive advantage, which appears to be reflected in it having the Lowest percentage of repeat buyers Leaving the province (7.3 % of totaE repeat buyers), as weLL as by far the strongest net inward migration rate of repeat buyers from other provinces.” With the Western Cape’s market strength widening the gap between property vaLues in other provinces, Geffen advises that thorough research is essentiaL for upcountry buyers to achieve maximum bang for their buck. “It is essentiaL for reLocating home seekers to do their homework before the finaE decision to move is even made. Property prices are higher in the Cape but there is stiLL vaLue to be found and, aLthough the advantages of Living here do outweigh the benefits of an extra reception room and enormous garden,.comprehensive research wiLL reduce the tradeoff by determining which areas and property options offer the best vaEue according to their needs.” Geffen concLudes: “I don’t foresee the growing influx of upcountry buyers abating any time soon as, over and above the LifestyLe advantages, investors aka benefit financiaLLy. Cape Town residentiaL property vaLues have consistentLy outperformed the other major centres in South Africa for a decade and it is now considered the most stabLe market in the country.”! Johannesburg, Robindale — R1,499 millio Most suburbs of Johannesburg will offer more house for your money than Cape Town, such as this threebedroom house in the north of Johannesburg.

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