More Gautengers investing in Somerset West property
One of the major driving forces in residential property in the Western and Southern Cape is ‘semigration’: the steady flow of people from Gauteng and the other northern provinces to the Western and Southern Cape.
With three bedrooms, an open-plan kitchen, study, braai room and an undercover patio, this home is selling for R2.995 million - click here to view.
This is according to Schalk van der Merwe, co-franchisee for the Rawson Property Group’s Somerset West franchise, who says this is no sudden flash-in-the-pan, but an ongoing phenomenon which has been evident for some time and is giving a huge boost to Cape property.
Van der Merwe says this year a staggering 46% of the homes sold by their franchise in Somerset West have been to upcountry buyers, and discussions with their George and Knysnafranchisees confirm that they are seeing similar numbers of buyers coming to them from the north.
“What we are now witnessing is almost a migration, and it has taken on a totally new flavour because, whereas in the past those coming to the south did so to retire or to take up new positions, they are now relocating in order to find themselves a home in an area which has less crime, improved local administration services, better schools and a more enjoyable lifestyle with a temperate climate, attractive outdoor facilities and less traffic congestion.”
He says in many cases, the family moving south from upcountry has to make considerable financial and other sacrifices. The breadwinners in the home may well be giving up well-paid jobs. Having sold their upcountry homes they will in all likelihood find that with the money they have received, they will have to settle for a smaller, less luxurious home on a smaller stand.
This five bedroom house in Spanish Farm, Somerset West, offers a formal lounge with fireplace, sun room with built-in braai, underfloor heating, a lapa and heated swimming pool. It is on the market for R10.2 million - click here to view.
However, they accept this in order to start a new life, says Van der Merwe. In a fair number of cases, they are able to run their businesses from the Cape, commuting north as and when necessary.
Van der Merwe says a further big boost toSomerset West property has come about as a result of the big increase in buy-to-let investors.
“Encouraged by the impressive rentals that are now obtainable on Somerset West homes, we are finding that certain clients are buying two, three or even four homes in order to rent them out, and this is another of the factors which is causing prices to rise at 12% per annum,” says Van der Merwe.
“As yet, I for one, can see no possibility of this trend easing off. In fact, the opposite is happening. The number of buy-to-let investors increases month by month.”