Semigration hits the Atlantic Seaboard property market

Despite the effect of the lockdown measures that were brought about due to Covid-19, the property market in the Atlantic Seaboard experienced an active year in 2021. The Quay 1 area specialists have noticed a growing demand for the luxury housing market in areas such as Fresnaye, Bantry Bay and Camps Bay following three years of slow turnover within the segment. This demand is encouraging as it generally trickles down into all price brackets within the Atlantic Seaboard area.

According to various property economists, the Western Cape region is poised to be a top SA performer in 2022. This expectation is based on the belief that the premium attributes that the Cape enjoys, such as natural beauty, a functioning state, lifestyle, and general safety will attract an increased number of semigrants and foreign purchasers now that Covid regulations are easing.

From a seimgration perspective, the Atlantic Seaboard area has been one of the most popular for many years. This trend kicked in with vigour in 2015 and was a key contributor to the double-digit growth the area experienced for several years thereafter. These semigration trends primarily stem from people moving down from Gauteng and KZN.

However, despite current optimism in the market, potential sellers are cautioned to be wary of taking a "sit, wait and hope" approach when it comes to house price increases as stimuli such as interest rate hikes, load shedding, and inflation can all have the ability to put downward pressure on activity levels. Therefore, a "strike while the iron's hot" approach should be taken into account when considering when to go to market.

2022 has got off to a busy start, with the Quay 1 International Realty team concluding over R95,000,0000 in gross sales over the last six weeks. We are hopeful that this year will attract a higher degree of stability which should bode well for sentiment and increase the likelihood of the market continuing to track an upward trajectory as the year progresses. We are however realistic and understand that this is by no means guaranteed in times where "expecting the unexpected" has become the norm.

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