Weekend Argus (Saturday Edition)
Retirement property demand
With a growing older population, there is a shortage of places they can call home
THE WESTERN Cape is facing a high demand for retirement accommodation as more retirees, or even those nearing retirement age, look to live out their golden years as comfortably as they can afford.
The province’s property market, aided greatly by the attraction of Cape Town and other popular regions, has for years been far outperforming the rest of the country.
But now a report by Lightstone Property analysts indicates that there has also been a significant increase in senior citizens investing in property in the Western Cape.
When Lightstone started tracking the numbers in 2005, 22% of residential properties bought or sold in the province were purchased by buyers over the age of 65. However, this increased to 35% last year.
According to other data, Bruce Swain, CEO of Leapfrog Property Group, says 73% of buyers purchas-
We have waiting
style villages in Johannesburg and Cape Town for people aged 55 and over.
The shortage is evident across a range of types of accommodation: old-age homes, frail care facilities and retirement homes.
“We have waiting lists for units in our five existing lifestyle villages… It is clearly an indication of the pressing need for more retirement units,” Case says.
He explains that the concept of a lifestyle village is different from the usual notion of accommodation for senior citizens.
“Most older people make the move into seniors’ accommodation only when they absolutely have to – because of a health crisis, for instance, or following a security concern such as a break-in.
“In those circumstances, people do not generally have much of an option as to where they end up. Usually it’s a case of take whatever is available in the market because it’s an emergency.
“But with the lifestyle village concept, the idea is that someone over the age of 55 makes a considered lifestyle choice, and buys a life right for a house or an apartment in a village.
“They can enjoy fully independent living in a home of their own – but with the added benefits of being in a secure environment with a range of recreational facilities right on their doorstep.”
Pierre Germishuys, Seeff ’s managing director in Paarl and Stellenbosch, says factors such as security, proximity to medical facilities, frail care on the premises itself, and proximity to shops and churches are equally important considerations when deciding where to spend one’s golden years.
However, the prices of property in retirement complexes are at a premium, and there are no affordable village developments in the province for pensioners on South African Social Security Agency (Sassa) grants.
Many non- Sassa pensioners also struggle to afford the costs associated with living in such villages, and find themselves being accommodated by family members or friends.
Some who have been fortunate to own their own homes, are able to sell these and buy smaller, sectional title properties in which to live.
For those who do not have family to fall back on, they find themselves looking for spaces in government institutions – another challenge due to shortage of such spaces.