Residential property sales in the Cape continue to grow at impressive rates, in stark contrast to the country’s overall economic growth projections.
Just recently, the World Bank halved South Africa’s growth forecast for 2017 after the economy fell into recession earlier this year. They say this year’s growth would probably be 0.6%, down from an earlier estimate of 1.1%.
“But in the property sector, we’re seeing growth in residential property sales in the Western Cape of around 13.8%,” says Mike Greeff, CEO of Greeff Christies International Real Estate.
Greeff’s turnover is up 39% this year and the company has recently opened two new branches in the Cape which he says shows its confidence in the region’s ability to sustain these impressive growth numbers. Offices have been opened in the Breede Valley and the Winelands.
The Breede Valley is becoming popular with families looking to ‘slow down’ which is easy to understand if one looks at the area’s abundant natural beauty. Commercial farmers are also flocking to the area to take advantage of what the valley has to offer.
“The Breede Valley is doing exceptionally well with growing demand for residential and commercial farming property in this region,” says Aimee Campbell, branch manager for the new Breede Valley branch. “Last year we recorded a 30% growth in property sales for the valley.”
Campbell runs the branch alongside her husband Carrick. This experienced team will cover the five towns in the area – McGregor, Montague, Bonnievale, Robertson and Ashton, as well as the agricultural land towards Worcester.
She cites young families from Johannesburg, KwaZulu-Natal and Cape Town choosing it due to a slower pace of life. There is so much to do in the area and you can get really good value for money in the valley.
“Commercial farmers – especially citrus farmers – have also flocked to the area to take advantage of the soil conditions that are perfectly suited to growing produce that has been the driving force behind the run on small holding and agricultural properties in the region,” says Campbell.
More people are also flocking to the relaxed natural beauty of the winelands which has helped this region secure the province’s second best growth rate in residential property sales, behind the southern suburbs of Cape Town.
An estimated 6 000 new homes have been approved by local municipal authorities for the Franschhoek, Paarl and Stellenbosch district which could collectively see around 10 new property developments in the next few years.
“This area is showing phenomenal growth and we’re excited about what the future holds,” says Jaco van der Merwe, who opened Greeff Christies International Real Estate’s new Winelands branch earlier this month.
From their office at the Boschenmeer estate, Van der Merwe’s team will service the greater winelands area including Paarl, Paarl Valley, Stellenbosch and Franschhoek, with an exclusive focus on developments in the area.
“We are seeing a lot of people from Gauteng opting for a slower, relaxed lifestyle topped with top-class schools for their children,” Van der Merwe shares. Many Capetonians are also choosing the winelands as part of their plans to downscale.”