Downscaling drives many sales

Ageing sellers want to move to smaller properties; others seek to relocate to reduce their monthly costs

ALMOST 40% of people selling property in South Africa are doing so to downscale, either because they are ageing or to save money, according to latest stats.

In some cases, southern suburbs residents in Cape Town are “downscaling” to bigger but cheaper properties in the northern suburbs which offer better value.

Statistics from FNB’s property economist John Loos show that at the second quarter of this year, 24% of South African home sellers were downscaling because of age. Downscaling as a result of financial pressure made up 15% of total sales. Selling because of changes to family numbers accounted for 16% of all sales.

Other reasons for selling included upgrading (11%), emigration (8%), semigration (8%) and safety and security concerns (11%).

There has been an increase in demand for property in secure estates due to concern about crime, says Tamara Nettmann, principal at Century 21 on the West Coast, and this is also a factor for many people who are selling. Families sharing homes is also becoming “more of a thing”.

She says Western Seaboard sellers are also looking to move closer to work or amenities.

In the Woodstock and Observatory areas, however, “very few” sellers are moving for safety and security reasons or to emigrate or semigrate, says George Clelland, agent for Seeff in these areas.

But about 25% of sellers here are moving to be closer to schools.

The rising cost of fuel means convenience is becoming increasingly important to buyers and this is a factor when deciding to sell, says Mike Greeff, chief executive of Greeff Christie’s International Real Estate.

With more people working from home, being close to schools is more important than commuting times to work, says Nancy Todd, franchisee of Rawson Properties Constantia and Kirstenbosch.

Avoiding the daily commute from the suburbs has resulted in “fantastic growth in inner-city living for young, career-oriented buyers”, says Thiry Murray, sales associate at Re/Max Living.

“Many sellers of these apartments are now married and ready to start families, so they want homes with gardens near schools.”

| SUPPLIED SELLING UP Making moves in South Africa.