Fin24

FNB: Cape Town attracts most repeat buyers

2012-08-29 16:36

Johannesburg - The Western Cape continues to outperform the other eight provinces in SA in terms of its ability to attract repeat home buyers from other provinces‚ according to the latest FNB Home Loans Property Barometer findings‚ announced on Wednesday.

“Although popular‚ Cape Town suffers a residential market mediocrity similar to other major regions at the moment‚ which is a function of a weak global economy. However‚ when it comes to indicators of long-term confidence in the various regions‚ Cape Town comes out generally better than the rest‚” FNB property economist John Loos said.

The city has the second-lowest emigration selling rate of the major cities‚ at 2.7% of total sellers since the beginning of last year‚ compared with the national average of 4%‚ according to estimates of property agents surveyed.

This is in contrast to “semigration” - selling in order to relocate to another part of SA - which made up 5.7% of total sales in Cape Town‚ against the national average of 8%.

Agents’ estimates of the number of foreign buyers of a region’s properties‚ expressed as a percentage of total buying‚ show Cape Town having a higher percentage - at 5% - than the rest of the major metros since the beginning of last year.

Breaking it down by province‚ results found the Western Cape to have the lowest net outbound relocation rate‚ at 10.7% of total repeat buyers. The net outbound relocation rate is calculated as inbound repeat buyers minus outbound repeat buyers‚ as a percentage of total repeat buyers. Cape Town is followed by Gauteng with 14%.

The smaller provinces had the highest rates of outbound migration‚ with Mpumalanga the highest at 33.9%‚ followed by the Northern Cape on 33.1% - which arguably speaks to a lack of economic opportunity in these provinces.