GEORGE NEWS - Approximately 70% of buyers of Lew Geffen Sotheby's International Realty George are from outside the George area and the majority are from Gauteng, according to the principal, Tim Kirby.

There has been an increase in the trend of people moving and buying property here, also from the Free State, KwaZulu-Natal and Cape Town area, says Kirby.

"The new trend is younger, professional families and corporate employees, who are now able to work remotely from home, and who are attracted to the area by the quality of life and schooling on offer."

The influx is creating a severe stock shortage of properties to sell and because of the huge demand from buyers, property prices have increased over the board. 

"As a result this has impacted on the affordability of younger, local residents wanting to purchase property, who are competing with 'metro salaries', making it near impossible to qualify for mortgage finance."

High-end properties in demand

Kirby says the kind of properties in demand are mostly for families who require larger family homes, in both gated estates and sought-after residential areas. "However, all properties remain in demand - from smaller lock-up-and-go properties that are ideal for investment, to retirement units for existing residents wanting to scale down."

Effect of remote working

Kirby says it is not necessarily true that in most cases the main breadwinner of newcomer families commutes. 

"Many of them manage to work remotely, with perhaps just a few visits each month to their head office. It is no longer the traditional Monday to Thursday/Friday commute."

New opportunities for developers

New residential, gated developments have been expanding by leaps and bounds over the past few years and developers are happy that the influx is bringing many new opportunities.

According to George municipal head of planning, Lauren Waring, the rate at which residential property has been taken up demonstrates a higher than expected semigration trend, although this trend may also be ascribed to local upward mobility (locals selling a property to buy a higher priced one).

Their data shows that between 2016 and 2021 there was a much higher uptake in medium- to high-end properties. This is reflected in the development taking place in Kraaibosch, Blue Mountain, Earls Court and other similar developments.

Bond-free buyers

Arno de Vos of Cape Estates, developers of Kraaibosch Estates and Welgelegen, says about five buyers out of their monthly sales are from elsewhere. "Most of them are bond-free buyers from the Free State, Gauteng and Natal, but we also have residents from elsewhere in the Garden Route."

The number of newcomers has lately been picking up. Many buyers commute, so the number of new professionals gained by George is not necessarily in proportion to the influx of families.

"This means local professionals have almost too much work," says De Vos.

There is also a shortage in land for development.

Waiting list for buyers

Groenkloof retirement village has a buyer waiting list. Financial manager Jacobus Murray says they will be developing 550 units over the next seven years and have recently started with the civil services for a new phase of the development.

At their estates, roughly 30% of buyers are from outside the Western Cape, about 20% from the Western Cape and 50% Garden Route residents who move here.

"The price range in which most units are sold is R2,2-million (life right) but there is also a big demand for cheaper units. The main reasons people give for moving here are safety, and a municipality that works," says Murray.

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