Western Cape lures home buyers

Johannesburg – Gauteng may be where the money is, but Cape Town is the preferred choice for home buyers, First National Bank's  home loans department reported on Tuesday.
 
John Loos of FNB said the Western Cape’s growing economy and “quality” lifestyle are luring home buyers from other parts of the country.
 
According to FNB’s study on the Western Cape, this province had the best inward migration rate and the lowest outward migration in South Africa.
 
In the FNB estate agents’ survey, released last week, estate agents said 7% of those selling homes do so to relocate to another part of South Africa. Relocating for work-related transfers or in search of better jobs is seen as the primary driver for moving house, according to agents' sample.
 
Secondary drivers include moving closer to family or children and escaping traffic and crime.
 
“A place that has the combination of huge economic opportunity as well as a great lifestyle would probably be winning the race,” said Loos.
 
Adrian Goslett, CEO of RE/MAX, said Gauteng number plates are common in the streets of Cape Town suburbs like Parklands and Table View. “Over the years a lot of people have moved down to Cape Town and suburbs have mushroomed into mixed living – you’ll have an R800 000 home next to a R5m home.”
 
Goslett noted the country’s major estate agents’ head offices are all in Cape Town. “This is where all the property deals are happening,” he said.
 
According to Globalinsight data, the Western Cape economy comes out tops, with an average annual growth rate of 4.2% during the past decade, just pipping the Gauteng growth rate of 4.1%.
 
“It would seem the Western Cape is the leader in terms of economic growth in modern times,” said Loos.
 
Loos also said the Western Cape’s outbound repeat buyers appear overwhelmingly headed for Gauteng, with very small percentages going anywhere else.
 
 - Fin24.com