Properties on South Africa's coast enjoy 'wave' of popularity
Category News
Real estate statistics for 2020 and 2021 leave no room for doubt: properties in various areas of South Africa's coast are soaring in popularity. The idea of moving to warmer climes, enjoying stunning sea views and making the most of a relaxed way of life has been transformed from a pipedream to a priority. Jawitz Properties takes a look at the property market on South Africa's coastline.
Coastal municipalities performing well
According to Lightstone data from 2020 and 2021, the property market in coastal provinces is more robust than the property market in inland provinces. The Eastern Cape and KwaZulu-Natal are among the provinces that have enjoyed remarkable growth in the last two years. Across all areas of South Africa, properties in most price brackets have moved in a positive direction in 2021.
The desire for bigger properties - and particularly properties on the coast - continues to be driven by the #workingfromhome trend, which has created a need for home office space and a desire for properties with bigger living areas and gardens that kids can play in. COVID-19 has ushered in an era in which our homes mean more to us than ever before and this is showing itself in an increased desire for properties on the coast.
An increase in semigration
The trend towards coastal buying is due to an increase in semigration, which involves moving to a different area of one's own country in order to enhance one's way of life. Being near an office in one of South Africa's commercial hubs is no longer a necessity, and in addition, an increasing number of South Africans are working remotely for companies overseas. This means that sea views, extra space and a relaxed way of life - rather than proximity to the office - are the factors that seal real estate deals.
Sectional title properties - particularly those in coastal areas - have grown in popularity as a result of the stay-at-home way of life that we have adopted during the pandemic. Property buyers are looking for quarantine-friendly properties in gated estates for the sense of community that is offered there. Sectional titles are also popular with families looking to buy a holiday home or a buy-to-let property, as security and external maintenance are typically taken care of by the body corporate.
Positive outlook for house price inflation - especially at the coast
A growing gap has been detected between coastal and inland house prices, which is thanks to the still-favourable interest rate. In the years leading up to the historic interest rate cuts of 2020, the performance gap between coastal properties and their inland counterparts was narrowing, but the tide has turned and we are seeing higher purchase prices at the coast.
On the coast of KwaZulu-Natal, the Eastern Cape and the Western Cape, the property market has enjoyed significant growth in sales and turnover. Across South Africa, mid-value, high-value and luxury property sales have grown from strength to strength in 2021 after the lockdown lows of 2020. Another piece of good news for the property market in 2021 as a whole is that the total value of transfers has seen a six-year high.
The advantages of the way of life at the coast cannot be overstated. From beautiful homes and surroundings to a wide range of outdoor activities for the family to enjoy, there are many great reasons to call South Africa's Insta-worthy coastline your home.
Jawitz Properties has all the property market insights that you need to make the best decisions. If you're looking to buy property in South Africa - either at the coast or inland - connect with us!
Author: Jawitz Properties
