Remote working spikes semigration
he current economic situation combined with businesses operating virtually, see more families moving to KwaZulu-Natal’s North Coast, says Jawitz Properties North Coast principal Vernon Vogt.
“The KZN North Coast has seen as much as 60% of Johannesburg buyers for new off-plan developments and we’ve had a spike in enquiries from Gauteng residents interested in the greater Ballito area, now that they work remotely.”
Vogt says even though holiday home and investment markets were quite depressed, there’s been a resurgence. New data from Lightstone Property indicates that lower interest rates and the ongoing correction of property prices have created a market ripe with opportunity for those looking to enter the market or buy up – or those looking to buy second properties as investments or holiday homes.
According to Lightstone, despite the general slowdown at provincial level, The Eastern Cape, KwaZulu-Natal and Mpumalanga now lead the provincial growth with rates currently above 5% per annum. It also says coastal towns are seeing better returns than the inland market.
Property in the Ballito area is valued at more than R3bn. Rapid infrastructural development coupled with a desirable lifestyle creating sustained growth, see buyers taking advantage of low interest rates and favourable work-from-home conditions to enjoy the many benefits of living at the coast.
“The North Coast has always been a popular holiday destination. It is, however, reinventing itself as the lifestyle hotspot in South Africa,” says Vogt.
Where Capetonians are buying
n Cape Town’s south eastern suburbs, such as Grassy Park, Gilray and Belhar, several buyers are competing for the same properties, reaching in some instances even higher than asking prices. This is according to Eazi Real Estate CEO Richard Day who says their average selling time in October was 11 days.
“With offers to purchase flooding in during October we reached a record turnover with just over 130% up on our previous best months of August and September,” Day says. “Our sales have increased substantially compared to last year, so this trend seems to be more than pent-up demand following the hard lockdown.”
Day reports seeing a high number of first-time buyers, especially young people and couples looking for properties below R1m, which sell really quickly. Popular suburbs include Plumstead, Bergvliet and Ottery, Parklands on the Western Seaboard, and Kuilsriver in the Northern Suburbs.
“There’s also demand for freehold properties below R2,5m from families and extended families buying together, and mature buyers looking for smaller properties which are easy to maintain,” he says. “Properties with a flatlet – either for additional income or as space for adult children or elderly parents – are also sought after.”
Whale Coast gets new luxury villa
he exclusive Perivoli Lagoon House outside Stanford on the Whale Coast is not only a new luxury getaway, it also has a heart for conservation and the community.
A two-hour drive from Cape Town, close to Hermanus, the villa is owned by the philanthropic Perivoli Trust, which channels all profits to conserving and restoring the land, with all surplus donated to the charitable Perivoli Schools Trust.
Seasoned hoteliers Marcelino and Simoné Henckert manage the secluded villa and bookings are on an exclusive-use basis for up to eight people. Booking options are flexible and include a housekeeping service, and a choice of an all-inclusive or self-catering stay.
The ultra-modern villa was designed by architect Gregg Goddard and the interiors done by Simoné Henckert. The building’s distinctive curved roof makes for a striking feature in the natural landscape. The villa offers four double suites with private bathrooms and terraces, and generous living areas that open onto wooden decks and a heated infinity pool.
The house has shaded views of the lagoon and is also equipped with a wood-burning fireplace and efficient eco-friendly pellet stoves, as well as ceiling fans and insect screens.
The kitchen is state of the art, leading to spacious indoor and outdoor dining areas with a braai station under cover, and well-known Stanford chef Madré is available to cater by prior arrangement.
Situated on 140ha that’s in the process of being proclaimed a nature reserve, Perivoli offers activities such as guided fynbos walks and beach excursions to nearby Walker Bay Nature Reserve, birdwatching, mountain biking and canoeing.
More relaxing pursuits include yoga and in-room massages. Special launch rates are available until 15 December 2020.
Meet South Africa’s new property investors
he profile of South Africa’s standard property investor has changed dramatically in the last decade. A few years ago, the profile was male and between the ages of 30 and 40, but the latest figures reveal a significant change. Now, it’s young women who are driving the investment market, a shift that bodes well for a housing market recovering from a pandemic during an economic downturn.
“The average most active property investor is female and under the age of 30,” says Michelle Dickens, managing director of credit bureau TPN. “Whereas we used to see millennials staying in rented accommodation for as long as possible, more are starting to see the benefits of investing in property.”
Data from TPN shows the so-called “micro landlords”, who own fewer than 10 investment properties, make up 98% of the investment market. A significant 87% of investors own two to four properties, while 11% have between five and nine properties.
Dickens says the lower interest rates have motivated millennials to invest in the property market. “It could also be because property prices, in nominal terms, have remained fairly flat in most areas,” she says.
Rental properties allow people to change jobs and move around, but now that millennials are moving out of this life phase, there’s a growing interest from this cohort in buying, rather than renting. And, in many cases, they’re investing not only in their primary residence, but in investment properties that will offer substantial long-term yields.
BetterBond CEO Carl Coetzee says there’s substantial evidence that women are going to continue to have a significant impact on the property market and its post-Covid recovery. Forty percent of all BetterBond’s applications this year have been from women buyers, up 12% year on year. Bond approvals for women have also increased significantly in the past decade, increasing from 14% in 2010 to 41% in 2020. Of these applications, 60% were from single women.
“These numbers show unequivocally that women are asserting their financial independence and recognising the value of investing in a stable asset class such as property. The notion of a male and middle-aged investor has been turned on its head, and this broadening of the investor pool will go a long way to ensuring that property investment remains dynamic and sustainable,” says Coetzee.