DIVORCE MOTIVATES MANY SALES

Ending a marriage, downscaling, semigration and emigration are reasons cited by most property sellers

THE INCREASING rate of divorce is a leading reason why properties are put on the market, real estate agents have disclosed.

These relationship breakdowns mean brickand-mortar assets need to be divided or sold or simply, that divorcees, and newly single parents, no longer need extra space.

Increasing numbers of South Africans are also selling to emigrate or downscale, the latest FNB Estate Agents Survey has revealed.

Sellers are downscaling with age and due to financial pressure. During the first three months of this year (Q1), estate agents perceived “downscaling because of life stage” still to be the most prominent reason for selling property.

FNB economist Siphamandla Mkhwanazi says this reason accounted for 23% of all sales.

The figure is similar to that seen in the final quarter of 2018 (Q4), states the latest FNB Estate Agents Survey.

Emigration-driven property sales are “gradually increasing”, accounting for 14.2% of sales in Q1 2019 from 10% in Q4 2018.

“Such sales, according to estate agents, have doubled in the past two years and are, as expected, more prominent in the coastal areas and upmarket segments.”

While this might not be positive news, Mkhwanazi says “downscaling due to financial pressure”, which has become “increasingly prominent” over the past year, decreased from 19% to 15.9%.

The FNB survey reveals reasons for selling: Downscaling due to financial pressure 15.9%. Downscaling with life stage 23%.

Emigrating 14.2%.

Relocating within South Africa 7.8%. Upgrading 9.1%.

Moving for safety and security reasons 10.2%.

Change in family structure 12.2%.

Moving to be closer to work or amenities 7.5%.

While agents from Knight Frank Residential are seeing owners sell for several reasons, chief executive Richard Hardie says selling due to divorce and downscaling is common.

Selling for reasons relating to death and divorce feature highly on the list of reasons for ¡ ¡ ¡ ¡ ¡ ¡

¡ ¡ selling in the Winelands, says Chris Cilliers, chief executive and principal of Lew Geffen Sotheby’s in the area.

There is also a “notable number” of sales due to downscaling.

“There has also been an increase in sales due to emigration, especially with younger families from areas such as Somerset West.”

Cilliers says the branch is receiving more enquiries from Cape Town buyers “fed up” with growing congestion in the city and Gauteng buyers looking for estate homes.

In Durbanville, 17% of registered property sales in last year were as a result of semigration, says Dawie du Plessis, director and principal of Lew Geffen Sotheby’s International Realty there. Other reasons the branch recorded include: Emigration 17%.

Financial Problems 14%.

Upscaling 26%.

Downscaling 14%.

Disinvesting 11%.

Property sales due to semigration have recently decreased in the Noordhoek area, says ¡ ¡ ¡ ¡ ¡ Mike Greeff, chief executive of Greeff Christie’s International Real Estate. A number of sales due to emigration, financial pressure, and divorce has occurred.

“Bergvliet, Meadowridge, Kreupelbosch, Oakridge and Diep River have seen emigrations and older sellers moving to retirement villages. There have been owners or spouses passing away, which has promoted the decision to sell.”

In Bishopscourt Village, Claremont Upper and Kenilworth Upper, many sellers are downscaling, semigrating or emigrating.

PICTURE: GERD ALTMANN THE BIG SPLIT Many homes currently on the market are being sold because couples have decided to part. |