Semi-Grants Impacting on Property

SEMI-GRANTS IMPACTING ON PROPERTY

Many stalwart South Africans who have refused to leave the place of their birth for the proverbial “greener grass” of other countries have instead chosen to semi-grate.

Louise Gibson, Managing Director, of ComProp - the leading commercial and industrial property agency on the KZN North Coast – gives her view point on this growing trend and its impact on popular nodes, such as Ballito.

The main reasons for semi-grating are focused around better economic opportunities, crime, education, better lifestyle, congested cities and so on, much like their emigrating cousins. The difference is that these people manage to achieve similar outcomes within our borders by relocating to a different part of the country rather than leave the country.

Statistics reveal that whilst economic considerations are pivotal in making a semi-gration decision, it is definitely first prize to move for a combination of good reasons, and in particular for a better lifestyle. Secondary reasons for relocating are for retirement, escape from traffic jams and congestion, need to move closer to family and to escape from high levels of criminal activity.

Media report that South African semi-grants’ most popular destination of choice is Cape Town, and for those wanting to escape the congestion and pollution of city life, the Garden Route towns have reported an influx of semi-grants, leading to an optimism that these areas  will in years to come be one of the top performing property regions.

Various research articles indicate that people in the Western Cape tend to move to Gauteng for economic reasons and job opportunities, whilst the Gautengers move to the Western Cape and KZN for quality of lifestyle, and that the smaller provinces such as Limpopo, Mpumalanga, Northern Cape and North West have the largest percentages of semi-grants who are less particular (rather “specific” than particular) in their choice.

A survey conducted by FNB established that approximately 7% of all sellers are doing so in order to relocate to other parts of South Africa.

The quality of the gated residential estates, north of Durban, such as Zimbali and Simbithi, are seen as a catalyst in attracting a vast number of semi-grants to KwaZulu Natal, (such as Zimbali and Simbithi).  Although official statistics are not available, Ballito is a prime example of a node being shaped by the influx of semi-grants, many of whom were regular holiday makers who then opted to move down, mostly from Gauteng, for good. 

According to Global insight data, KZN runs a close third to the Western Cape and Gauteng on average annual real economic growth. KZN has great weather, warm sea, the Midlands and lifestyle attractions, it does however, lag the other two regions in terms of economic growth.

For this reason, a good percentage of semigrants to KZN, still commute back and forth – mostly to Gauteng - catching the “red eye” flight early on a Monday morning. None the less there are increasingly those who have relocated their businesses down here or established new businesses, thereby contributing to the overall economy and stability of the area.  Semi-grants also facilitate economic growth and opportunity by providing new energy, enthusiasm, as well as by bringing their particular skills to the local business environment.

The key to attracting and retaining semi-grants is a strong economy and good lifestyle prospects that allow individuals to live, work and play in a vibrant, safe and economically viable node.

Louise Gibson

Managing Director

ComProp

083 4772777