BusinessTech.co.za reports the new FNB Estate Agents Survey for the first quarter of 2019 reveals a massive jump in the number of people selling up and leaving the country.
While “Downscaling because of life stage” is still the most prominent reason for selling a property in South Africa, with such sales accounting for 23% of all sales, emigration-driven sales now account for 14.2% of all sales, a big jump from 10% in 4Q18.
FNB economist Siphamandla Mkhwanazim says sales to emigrate have doubled in the past two years and are, as expected, “more prominent in the coastal areas and in upmarket segments”.
BusinessTech also quote immigration consultant Chris Watters who told Radio 702 that it is no longer the case that only white South African are leaving the country. He said people looking to emigrate were “across the board”, with people from varying backgrounds wanting to leave.
On a slightly positive note, although downscaling due to financial pressure has become increasingly prominent in the past year, the estimated proportion of such sales eased to 15.9% in 1Q19, from 19% in 4Q18, FNB said.
Of those who sell due to financial pressure, an estimated half opt for the rental market, and the other half opts for a cheaper property. The proportion of those who opt for rentals has, over the past year, been rising, only retreating in 1Q19 at approximately 49.01% from 68.01% in 4Q18, the lender said.