Saffers see the upside of downsizing to a mid-scale city
Phumulani Hlatshwayo lived his life “fast and furiously” in the City of Gold until he decided it was time for a change of pace and lifestyle.
Hlatshwayo’s move from Johannesburg to Port Elizabeth has allowed him to upsize to a luxurious pad and save thousands of rand in petrol.
The father of two, who heads the commercial division of the Nelson Mandela Bay Stadium, is one of many South Africans who are beginning to fuel the rise of second-tier cities such as Port Elizabeth, Kimberley and Bloemfontein. They are tipped to grow for several reasons, including lower living costs and less rushed lives, especially now that Covid-19 has boosted remote working, say property experts.
No longer is a move out of Cape Town or Johannesburg to these smaller cities and towns considered “trading down”, but rather a way to seek a better quality of life, often in more scenic locations where the price tags on homes are less likely to break the bank.
According to a Unicef report on secondary cities, “they develop because they are favourable destinations for businesses and industries experiencing the strain of operating in primate cities because of overwhelming urbanisation challenges”.
Hlatshwayo’s move was influenced by career growth and the desire to escape “Joburg’s hustle and bustle”.
“I had lived in Joburg all my life ... fast and furiously, so it was time for a change in lifestyle.
“I bought a house in Port Elizabeth in February this year and I must say, I got value for money looking at what I’m paying compared with what I would be paying in Joburg for the same type of property in a similar suburb.
“The cost of living is much lower here due to factors like low traffic, proximity to work and other essential places.
“I used to refuel my car every week in Joburg. Here, one full tank lasts me a month,” said
Hlatshwayo.
Clifford Oosthuizen, MD of Westbrook Property Developments in Port Elizabeth, said Covid-19 has “served to emphasise the fundamental importance of location, accessibility and convenience when it comes to property investment, a further factor behind the increased interest in such cities”.
Oosthuizen said a shift to remote working has given South Africans another reason to consider a move to secondtier, cheaper cities.
“If you can live anywhere, it makes more sense to live somewhere that’s less expensive.
“A lower cost of living makes it easier for newcomers to enjoy the urban experience in this next tier of cities, whether they’re renters or homeowners.”
Dr Andrew Golding, head of the Pam Golding Property group, said the lack of congestion in a second-tier city “has high appeal for those wanting to escape from high-density, congested city living, where some have been cooped up in tiny flats”.
He said hubs like Port Elizabeth, Bloemfontein, Mbombela, Kimberley, Rustenburg and Polokwane were becoming “more appealing” to businesses and families.
“As a consequence of Covid19 and the move to work from home and long-distance learning, locations such as Port Elizabeth,
I lived in Joburg all my life ... fast and furiously, so it was time for a change. The cost of living is much lower due to factors like low traffic, proximity to work
The main factor influencing my move is that I have children of school-going age. This made me look for a city that offered good education
Bloemfontein and Kimberley, as well as other secondtier cities such as East London, Nelspruit and Polokwane, provide attractive alternatives to major-city living.
“This is driven by economic factors and the need to contain costs.
“The unprecedented drop in interest rates has highlighted the opportunity to reduce costs and relocate to cities/towns which offer up to 30% less for housing, as well as good medical care, great schools and less pollution, and an appealing lifestyle.”
Komani customer-care practitioner Nondumiso Mbanxa chose to relocate to Port Elizabeth instead of Cape Town or Johannesburg.
“The main factor influencing my move is that I have children of school-going age.
“This made me look for a city that offered good education, where schools are close to home and where we would feel secure.”
She said living in a second-tier city would give her and her two children a better quality of life.
Samuel Seeff, chair of Seeff Property Group, also found that Port Elizabeth had seen notable development over the past few years.
“George in the Western Cape is a prime example of a secondtier city which has seen an influx of people, with buyers looking to relocate to the coast to get away from the large centres such as Johannesburg and Pretoria.
“It is not just the cities that are seeing growth and opportunity. We are seeing areas such as Hermanus fast developing into a town, popular for its proximity to Cape Town and the airport. It is ideal for commuters,” he said.
He believes for the trend to succeed there must be “notable economic growth and opportunity, anything from industrial zones to mining etc to boost demand for housing sales and rentals, as we saw during the platinum boom around mining towns such as Rustenburg.”