In recent years, the Western Cape has emerged as a prime destination for South Africans relocating within the country, a trend commonly known as semigration.
Several factors contribute to this shift, including a desire for a better quality of life, economic opportunities, and an increasingly stable property market. This movement is not only attracting local buyers but also foreign investors, which further drives up property prices in the region.
Pam Golding notes that the initial wave of semigration to the Western Cape began between late 2013 and late 2016, with a resurgence post-2020, largely influenced by the pandemic, the 2021 civil unrest, and growing concerns over municipal service delivery.
According to Lightstone Property’s 2024 report, the number of homeowners opting for interprovincial relocation has significantly increased. In 2019, only 16% of homeowners chose to move to another province; by 2024, that figure had surged to 27%. This marks a noticeable shift in the mobility of South African homeowners.
Cape Town, under the leadership of the Democratic Alliance since 2006, has become the country’s best-managed major city, drawing middle-class families from poorly governed metros, especially after the rise of remote working during the COVID-19 pandemic, as reported by Bloomberg.
The influx of new residents has created a shortage of affordable housing, further pricing locals out of the market. Data from Statistics South Africa shows home prices have risen by 30% over the five years ending in March 2024.
“The numbers are quite staggering,” said Geordin Hill-Lewis, mayor of Cape Town. “In the last two years, 100,000 families moved to Cape Town from elsewhere in South Africa,” with approximately 80% of these households coming from Gauteng.
City officials approved more than 4 000 plans for buildings, including residential, industrial and commercial works, worth R7.5 billion in the three months through December, a 61% increase in value from a year earlier, spokesperson Luthando Tyhalibongo told Bloomberg.
In its latest budget, the provincial government said it will invest R30.879 billion in 924 projects over the next three years, ensuring communities have access to better roads, housing, schools and healthcare facilities.
While there have been calls locally for the city to intervene in the housing market with mechanisms such as price controls, Hill-Lewis doesn’t agree. “That’s a very bad idea and has perverse consequences, where you actually get less investment, and therefore higher prices over time.”
To address the increasing demand for housing, Cape Town is fast-tracking municipal planning processes, with changes to planning by-laws expected. These changes will help reduce the approval timeline for construction plans from around two years to a few months, allowing the city to better respond to the growing housing demand.
“We want to see applications move through the system quicker and deliver more affordable accommodation,” said that mayor, however, he strongly opposes the idea of price controls. “That’s a very bad idea and has perverse consequences, where you actually get less investment, and therefore higher prices over time,” he said.
The city plans to invest R120 billion in infrastructure, including power, water, and transport networks, over the next 12 years. Visible policing and other measures to combat crime will also be implemented.
As the demand for properties in established hotspots like the Southern Suburbs and Stellenbosch continues to grow, new areas are emerging as the next desirable locations.
Areas such as George, Somerset West, and the West Coast are gaining traction, showing that as one area becomes saturated, others with better value for money and a similar quality of life are rising in popularity. This shift in demand is reshaping the Western Cape’s property market and offering new opportunities for both buyers and investors.
Cape Town’s Southern Suburbs
Popular Areas: Constantia, Claremont, Rondebosch, Newlands
These suburbs have long been sought after by families for their proximity to top schools, parks, and suburban living, while still being close to Cape Town’s city center. High demand in these areas continues to push up property prices.
Stellenbosch & Surrounding Areas (Cape Winelands)
Popular Areas: Stellenbosch, Franschhoek, Paarl, Somerset West
With its prestigious universities and picturesque surroundings, Stellenbosch remains a top choice for semigrants. The charming atmospheres of Paarl and Franschhoek, coupled with their proximity to Cape Town, are also driving demand. Somerset West, known for its family-friendly environment, is growing in popularity as well.
The Garden Route
Popular Areas: George, Mossel Bay, Knysna, Plettenberg Bay, Sedgefield
The Garden Route is becoming increasingly popular, especially with retirees and those seeking a quieter, slower-paced lifestyle. George and Mossel Bay offer more affordable alternatives to Cape Town, while Plettenberg Bay and Knysna attract higher-end buyers.
The Boland (Ceres Valley and Worcester)
Popular Areas: Worcester, Ceres, Robertson
As established areas like Stellenbosch become saturated, towns further inland, such as Worcester and Robertson, are gaining traction. These areas offer a quieter, rural lifestyle at more affordable prices, with easy access to Cape Town and surrounding nature.
Atlantis and the West Coast
Popular Areas: Langebaan, Yzerfontein, Velddrif
As Cape Town’s urban areas become more congested, the West Coast is emerging as an attractive alternative. The relaxed lifestyle, lower property prices, and access to nature are making towns like Langebaan and Yzerfontein increasingly popular.
Helderberg Basin
Popular Areas: Strand, Gordon’s Bay, Somerset West
The Helderberg Basin is witnessing a significant rise in demand due to its beautiful beaches, slower pace of life, and good local amenities. Somerset West remains a top choice for families, while Gordon’s Bay and Strand appeal to those seeking a coastal lifestyle at a more affordable price.
The Overberg
Popular Areas: Hermanus, Gansbaai, Swellendam
Hermanus, known for its stunning coastal scenery, is becoming a sought-after destination for semigrants, particularly those seeking a blend of outdoor living and a growing infrastructure. Gansbaai and Swellendam offer more affordable properties while still maintaining the coastal charm, making them attractive to those looking for quieter areas with easy access to nature.
The dynamic property market in the Western Cape continues to evolve as semigration reshapes demand and introduces new areas for buyers and investors to explore.