Is the grass greener on the coast? The property market has seen an uptake in semigration from Gauteng to the Western Cape.
Africa Melane speaks to Lightstone Property Head of Digital, Hayley Ivins Downes on the effects of semigration on the property market.
The property market has seen an uptake in semigration across the country, particularly to the Western Cape.
Downes says the number of people relocating to the coast has increased from 31% to 46% over the last five years (2018 to 2023).
It is all around lifestyle and [better] governance. Ever since COVID, there has been a big move around the fact that you don’t need to be working in your office anymore, there is a lot more flexibility.
Hayley Ivins Downes, Head of Digital – Lightstone Property
She says the effects of semigration on the property market include:
• Increased property prices in the Western Cape
• A drop in property prices in Gauteng
The percentage of people semigrating to Gauteng over the last five years has dropped from 27% to 19%.
It really is a buyers’ market in Gauteng, any seller is really battling to attain the price that they would want for a property because the demand in Gauteng is not where it is in the Western Cape.
Hayley Ivins Downes, Head of Digital – Lightstone Property
While the rental market has generally increased across the country (due to high interest rates), it has particularly increased in the Western Cape.
Downes says there has also been a drop in foreign purchases of property due to the current South African climate (the economy, politics, etc).
The investment into South Africa on property is a bit at a low, in 2021 5% of properties were being bought by foreigners, we are now down to 1.3% in 2023.
Hayley Ivins Downes, Head of Digital – Lightstone Property
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