While no housing market is currently ‘outperforming’ anywhere in the county, FNB may have previously underestimated the level of migration in search of a better lifestyle in South Africa – especially amongst retirees.
This is according to the bank’s household and property sector strategist, John loos, who said that an estimated 10% of total sellers are selling to relocate to another part of South Africa.
“This percentage remains ‘elevated’ since the 6% low point reached in the 2008/9 recession, and has shown no sign of slowing yet,” he said.
“What is also told to us by agents surveyed is that of those relocating from Gauteng, a significant portion are looking to relocate to retire, many to coastal regions.
“It is perhaps this potential source of demand for property in certain traditional holiday towns that we have been under-estimating,” he said.
Loos added that while FNB has long been aware of a portion of inland retirees relocating to the coast, it has not been able to estimate the magnitude with statistics.
This includes a significant number of ‘up-country’ retirees has chosen the City of Cape Town and surrounding ‘non-holiday’ towns as their retirement destination in recent years, he said.
However, the City of Cape Town and surroundings have seen sharp deteriorations in their housing affordability – leading to retirees looking elsewhere for possible living opportunities.
“It is possible that a significant portion of inland retiree demand for coastal property may shift to ‘less-inflated’ coastal regions such as the Southern Cape or KZN coast,” Loos said.
“Traditional holiday town housing demand may become less about demand for holiday homes and more about housing demand for retirement and lifestyle, demand which may have previously headed for Cape Town in its more affordable days.”