Gautengers Affect Cape Property Market

December 23 - Crime is one of the main reasons why Gautengers are leaving Johannesburg in droves to relocate to Cape Town.

As a result, the demand for property in Cape Town is growing at an unprecedented pace, and the latest research shows that the price of an average apartment in the Mother City is more than double what one would pay in Johannesburg.

The Chief Executive Officer of Engels and Volkers, Patrick O'Shea said: "In the first quarter of this year we have seen a large rise in the number of Gautengers from all cultures and income groups looking to relocate to the Cape."

"I would say it is on a scale comparable to the North to South migration that took place in the mid 1990s, which saw a similar wave of relocations," he added.

Gautengers cite a number of reasons for their change in lifestyle, although crime tops the list.

In addition, they say that traffic congestion and power outages in Johannesburg continue to worsen.

Those seeking to set up a new business are also finding more opportunities in Cape Town.

"Office space vacancies in the CBD are at record low of 4%, pointing to the development of the city as a preferred place for setting up shop," said O'Shea.

Other areas are also being impacted by the growing number of migrants to Cape Town, including longer waiting lists to exclusive schools.

The cost of an average square meter in a standard apartment in Cape Town is priced at R22,272, compared to R11,008 in Johannesburg.

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12/23/2009 9:53:41 AM