Earlier this year, Lighthouse Properties reported that 43% of homeowners selling their properties in Gauteng are buying another property in another province – and of that percentage, 36% are buying in Cape Town and the Western Cape.
It is believed that this semi-migration supports the strengthened property market of Cape Town, as skilled workers, entrepreneurs and large companies migrate in favor of the metropolis to find work, set up businesses and relocate their offices.
“With the tourism perspective on the emerging and positive data released by Western Cape Promotion and Investment Bureau, Wesgro, Cape Town will lead the recovery of the real estate sector across all assets,” said Quintin Rossi, CEO of JSE listed real estate group Spear REIT.
Rossi attributes this recovery largely to migration, as an increase in buyer activity is noticed by the residential sector as people move from Gauteng and KwaZulu-Natal to the Western Cape.
Rossi said that while the national and global economic outlook remains difficult to navigate, the city’s property sector is accelerating its recovery.
During Spear’s pre-close investor presentation, Rossi pointed out that Cape Town’s office, retail and industrial occupancy rates are showing a healthy return as the trend returns to work and companies begin to focus on growth and recovery.
Spear, which has 32 properties within its regionally specialized portfolio of R4.6 billion, showed a near 94% occupancy rate between March 2021 and the end of February 2022, with a portfolio covering 100% in the Western Cape .
In addition to the obvious lures of the Mother City, it is said that semi-migrants are looking for safety and security, lower pollution and a better liveability, and South Africa has some unique factors that support the trend:
Recent remarks by First National Bank property strategist, John Loos attributed the unrest and looting in KwaZulu-Natal and other regions of South Africa in July last year as another major factor for companies moving. Many people who were sitting at the gate have now accelerated their plans.
The municipal districts of the Western Cape and Cape Town have earned the reputation of running well and managing effectively. Maintaining current infrastructure and rolling out future projects, as well as current efforts to reduce confidence in Eskom, make a huge investment case for the region.
The policy of the Western Cape government is to ensure that the city and province have the necessary infrastructure and technology to support business and investment in the region.
Top international companies such as Johnson & Johnson, Microsoft and Reuters have set up facilities in Cape Town. According to US retail giant, Amazon will be the anchor tenant in the development of residential and commercial property in Cape Town based on R4.5 billion which is expected to create 5,239 jobs in the construction phase alone.
South African tech companies based in the Western Cape have continued to attract international investment with Fintech company Clickatell announcing an additional capital increase of R1.3 billion through the international investor market to further boost their growth ambitions on the African continent .
The Western Cape has established itself not only as a top international tourist destination, but as an economically viable investment destination for tech companies, green energy companies, such as South African and foreign families seeking self-sufficiency.
The result brings benefits to the Province’s residential, retail, commercial and industrial real estate sector.
Semigration encourages Cape Town property market
Source link Semigration encourages Cape Town property market