An immutable property market principle is that people move for varied reasons.

But the last two years have seen a shake-up in the SA and world economy and then there are also unique local factors such as crime and security reasons compelling people to buy other properties.

So what exactly are the main drivers behind people buying other properties and moving from one property to another in SA? And which factors have been relegated in the rankings?

Carol Reynolds, Pam Golding Properties (PGP) area principal in Durban North and La Lucia, says the main buyer drivers are affordability, lifestyle and security. “A lot of sellers are coming to the market to downscale and move into more compact homes, where maintenance and monthly expenses are reduced. Security is a factor, with strong demand in estates. People are also looking at areas that offer a strong neighbourhood watch presence like Upper Durban North and La Lucia.”

She says these “buying” factors seem to have undergone a change due to the effects of the worldwide financial crisis. “Financial affordability is the key market driver at the moment. Pricing impacts everything from buyer activity to turnaround time to banks finding value in the home. Without correct pricing, stock is simply sitting.

“Self-employed buyers are finding the lending climate very prohibitive, and this too is impacting upon the size of the buyer pool and the bond decline rate. Security is still an issue, but it is secondary to affordability.

Gerhard Kotzé, CEO of the ERA South Africa property group, agrees that crime and safety concerns now appear to be playing a less pivotal role in property buying decisions than in previous years.

“Instead, affordability is the big issue, with economic considerations such as electricity prices, commuting costs and rates and taxes coming to the fore.

“Crime is of course still an issue, and there are always some areas that buyers will perceive as absolute no-go zones, no matter how many security measures a particular home has in place.

“However, our agents report that for the most part, crime has moved lower down the order of priority when it comes to buyers ticking the boxes in favour of a property purchase. The emphasis also appears to have switched away from the incidence of crime in an area to what specific security measures are in place.

“It’s as if South African homebuyers now see crime as part of everyday life in most suburbs and so expect that as a matter of course there will be adequate precautions in place in terms of the property itself and in the neighbourhood. They only really notice if there are no security provisions.”

Meanwhile, Kotzé says, it was interesting to note the decrease in crime during the Soccer World Cup, which many commentators predicted would attract predatory criminals of all kinds.

“Instead, media reports indicated that crime incidents were actually lower countrywide during the event and were in fact the lowest of any World Cup event to date, with police making just 447 arrests relative to the 5,7m fans who viewed the 64 games in stadia or fan parks.

“The key in this respect was obviously the 44,000 extra police recruited for the event and mostly deployed around the stadium grounds and fan parks. This proves that crime in South Africa is controllable given sufficient resources and proper planning, and makes one think about the positive effects it would have on the economy in general and the property market in particular if this commitment to proper policing could be maintained.”

Another prominent factor some buyers, especially those from the moneyed classes, take into serious consideration is having a breathtaking and improved view.

Berry Everitt, CEO of the Chas Everitt International property group, says homebuyers are accustomed to the idea of paying a premium for a property with a view, like a “house on the hill” or an apartment overlooking the sea.

But just how much value does a view add? “In an area where most homes have views you’ll probably pay a smaller premium to have one than in an area where view homes are scarce,” says Everitt.

“On the other hand, buyers will usually pay an extra premium for a view that is wholly unobstructed by any other homes, power lines or trees.”

However, he notes, even buyers prepared to pay extra for a view are unlikely to do so unless the property as a whole is in good condition and has facilities such as a second bathroom or proper garaging that warrant the higher price.

Everitt says a small, run-down home with a spectacular view will, for example, have limited appeal even to view buyers, because most of them will be reluctant to spend even more on renovations or additions.

“The local buyer profile will also affect the value equation. If most buyers in an area are looking for homes in which to raise children, but all the view homes available are tricky to access or have no gardens, those properties may actually be hard to sell and fail to command any premium at all.

“And of course, no view can compensate for a neglected area at risk of going into a decline. In fact, it might even become a hindrance, since the view property you paid a premium for will be harder to sell than others if prices in the area start to fall.”

Jonathan Davies, manager of PGP’s Hyde Park office, says from his experience there are four reasons why people buy and move. “Firstly, people get transferred and are forced to relocate. Secondly, they upgrade because their families may increase in size and they in turn need more space, or thirdly, they downsize because older children move out and maintenance increases and some people look for less hassle and a more secure lock-up-and-go property. Lastly, some people are compelled to move as the recession forced them to relocate or downscale due to financial constraints.”

He says all factors are negotiable when people are weighing up their options with a purchase. “Some buyers will only buy in a secure boomed area while others are not too particular. Price plays a role because even a less secure home at a bargain price will lure previously security conscious people to buy and install their own increased security measures themselves.”

Laurie Wener, MD for PGP in the Western Cape (Cape Town metropolitan area), says the Western Cape is seeing mainly end users buying to scale up or down. “Buyers are security-conscious and looking at value for money before emotional needs. Almost 70% of sales in Western Cape are cash (no bond) and buyers are aware of the value of cash nowadays and expect better value.”

She says security is an ever-increasing issue, low maintenance an advantage, but the motivation changes from one area to another.

Reynolds says it is still a buyers’ market, so buyers are educated and informed. “They will operate within a price-band, and will simply walk away from a home if their offer is not accepted. The greatest non-negotiable is therefore price. The area is also critical, buyers won’t compromise on position.” – Eugene Brink

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