The migration of South Africans from Johannesburg to Cape Town appeared to slow in 2024, according to Rory O’Hagan, a principal at Chas Everitt Hyde Park and Sandton.
He noted that the Johannesburg metro still represents approximately 36% of all home loan applications, while the Western Cape, which accounts for just 19%, is seeing a decline in semigration.
This shift, he believes, is driven by factors such as rising property costs, traffic congestion in Cape Town, and the region’s harsh winter weather.
O’Hagan noted that Johannesburg’s office space recorded sales value surpassed R1.24 billion. Almost 500 properties in Bedfordview, Midrand, and the northern suburbs of Johannesburg were sold during this period.
O’Hagan attributed the revitalisation of the Johannesburg property market to several key factors, including the formation of the Government of National Unity (GNU) and two interest rate cuts in September and November 2024. He noted: “Prospective buyers have noted the steady progress being made with fixing Johannesburg’s infrastructure, and November was a record month for us.”
Data from Lightstone revealed that migration to the Western Cape had declined compared to 2022, while Gauteng has attracted an increasing number of property owners moving between provinces. FNB’s Property Barometer also reflected heightened activity across both Gauteng and the Western Cape after the rate cuts.
Despite the rise in activity, Johannesburg continues to capture a larger share of home loan applications, with the Western Cape seeing a decline. O’Hagan explained that the return-to-work policies have led many people who relocated to Cape Town during the pandemic to move back, rather than endure the inconvenience of commuting.
