Semigration to the Klein-Karoo: what’s in it for developers?

In a recent Property24 feature, Seeff agents in Oudtshoorn, Calvinia, Middelburg and Harrismith expand on the benefits of living in smaller towns reporting that up to a quarter of buyers relocating to these towns hail from the main centres of Johannesburg and Cape Town.

‘About 20% to 25% of Seeff’s buyers over the last two years come from large cities,’ according to Jan Verlinde, licensee for Seeff Oudtshoorn. He says they mostly buy large family homes, and that Seeff has sold several properties in the R2-R3-million bracket to semigration buyers, which is high-end for Oudtshoorn.

Ingrid Noble of Just Property Oudtshoorn says the town offers true value for money.  ‘A three-bedroom home can be priced from R750,000 to R1,200,000 but can go well into the millions. Location is the factor that will determine what you spend on a home here, but this is relevant to property around the country.

‘However there are very few towns where one can buy a heritage sandstone home with three bedrooms, bathroom, a large garden and garage and sometimes even a cottage, for under a million.’

Profiling the semigrants

‘Buyers come from abroad, from South Africa’s capitals, and as close as George and Mossel Bay. People are making choices to move for a better life, living a little easier with a little less stress,’ says Noble.

She adds there has been a change from buyers purchasing properties in town purely as an investment. ‘Now a lot of buy-to-live is occurring. Many guest houses are on the market in the Klein Karoo and make for great investments, creating an income in small towns where salaries are low and unemployment high.’

Estates in demand

Verlinde says that there is a high demand for gated estates, but low supply, since new developments are scarce. Fortunately, Verlinde Properties, a development team in Oudtshoorn, is aiming to keep up with this demand by launching Pepperwood Lifestyle Estate early next year. Previous developments from this team have shown that the demand keeps on growing.

Driving the demand

The demand is driven by semigrants as well as locals, and often for different reasons. Locals who move to these estates prefer the community aspect, the ease of lock-up-and-go, and knowing their investment will grow, whether they decide to move in themselves or put it in the equally in-demand rental pool.

Semigrants are often allured by the security that an estate offers, though Verlinde says that one does not necessarily need gated estates to be safe in this part of the country.

Verlinde says that the security aspect is less significant in safe Klein Karoo towns, but once people have become accustomed to the benefits of community living, there’s no turning back.

‘It’s a combination of the lifestyle offered in Oudtshoorn, the comforts availed by gated estates, and the safety aspect.”

‘It’s much more sensible to invest in property within a secure estate than in a freestanding house on the street, one of many advantages being that homeowners associations keep an eye on your investment for you.’

It is of course essential, says Verlinde, that when developing an estate and taking it through to conclusion, a strong management team is put in place. This will ensure that your investment remains safe into perpetuity.

Success stories

Tribeca Estate is a pioneering development in Oudtshoorn which is all but sold out. Verlinde says marketing of the estate kicked off on the day that SA’s first hard lockdown was announced.

‘Not even Covid-19 dampened the desire for new developments, as two and a half years later, the development team has another project lined up.’ At another estate by this team, El Dorado, homes are invariably sold within a week of coming on the market.’

He adds that the desire to live in a lifestyle estate, be the buyers current locals or newly-arrived semigrants, has inspired the development of Pepperwood Lifestyle Estate. Construction on this estate will start early next year.

‘All approvals are in the bag and technicalities are being streamlined. The estate will offer everything from one to three-bedroom, semidetached and freestanding homes, to cover the entire market.’

Finally, Verlinde adds, the Klein-Karoo capital is the only smaller town in the district that offers estate living.

So, developers: take note and take advantage of the wide open spaces, wonderful weather, and lifestyle wish lists of this burgeoning market.