2021 marked the year of Semigration soaring in the Western Cape especially amongst the middle-class market, fuelled by the security estate sector. Prospective buyers were notably considering moving into the Western Seaboard due to the well-known Cape Town lifestyle and close proximity to amenities such as outdoor sports, mountain and hiking trails, beaches and surfing! 

It was clear that people are moving into outlying suburbs as their way of finding a balanced lifestyle amidst the chaos of the pandemic.  The Western Seaboard offers favourable consideration for prospective Semigrators as they consider secure environments. The Western Seaboard offers a variety of residential living options across areas which have proven to be attractive. The desire of discerning buyers semigrating is one driven by the sense of community, safety and the benefits of creating a “lock-up-and-go” lifestyle. “The increase in the secure environment trend also partly often driven by a growing number of families who are relocating for a favourable lifestyle but where the husband or wife has to regularly commute to another city. The general nature or stigma of “Gauteng living” is now different but there was an increase in interest from Kwazulu-Natal following the unrest in 2021. Apart from local families from Kwazulu-Natal and Gauteng who have chosen to ‘semigrate’ to Cape Town, there also appears to be a revival of foreign interest.”

On 15 February, Cape Talk Lester Kiewit interviewed 36One Asset Management founder CY Jacobs about the anecdotes abound of a middle class exodus from Johannesburg to coastal areas, particularly to Cape Town and its picturesque surrounds. The trend according to Jacobs was established prior to the pandemic but has rapidly accelerated since as the perception is that Johannesburg is deteriorating while Cape Town is well-managed and offers an unmatched quality of life, compared to the rest of South Africa. Listen to podcast here:

Semigration Podcast Cape Talk 15Feb2022

Not to be the bearer of bad news, but many agencies focus on the above, but do not share the challenge the Semigration has on the purchasing process and the risk it creates for sellers, this was also evident in Jacob’s interview as he notes the drop in property values in wealthy suburbs such as Sandton with up to 25%. Many prospective buyers purchasing

property due to this Semigration trend are bound by a suspensive condition of the subject to a sale of a property situated Inland. As we are experiencing increased demand, so they, in turn when selling their homes are experiencing a downturn in their markets which can prolong the transaction as a result of not selling their property as quickly.

Complete Coast Properties as a team is always seeking to turn a property journey challenge into a positive experience for both our buyers and sellers alike, and this trend we spotted was no different. Where potential sales are subject to another property been sold Inland, we build relationships with their agencies and work closely to ensure that market-related pricing for a favorable, reasonably timed sale results in the conclusive sale. This again, is just an example of how our team continuously looks at ways to add value to our clients in the process and why we are known for our intentional customer relationships.

 

I guess the closing note is… follow our socials to stay updated with factors that you should

consider when selling to a “Semigrator”! Until next time!