The steady move of middle-class South Africans to the Western Cape because of its promise of a more balanced lifestyle in a safer environment continues. Semigration, particularly from Gauteng, is happening across age and ethnic groups.
This is confirmed by the CEOs of property companies and the advisers of people on the move.
Commercial interest in the Western Cape is also picking up as the province leads the recovery of the real estate market, with metro and provincial governments perceived to be more innovative and business friendly. Cape Town is positioning itself to be the first metro in SA to be free of load-shedding. It already has fewer blackouts.
“Crime is driving people away from Joburg to Cape Town,” says René Stegmann, director and owner of Relocation Africa, which helps individuals and corporate clients to settle their relocated families and employees into new environments.
Among the consequences for the Western Cape are higher rents and property prices, and schools running out of places for children.
Samuel Seeff, chair of the Seeff Property Group, says: “Semigration is often seen as a better option than emigration. South Africans generally do not want to leave the country, but they want to live in areas which are seen as safer and where service delivery meets expectations.” He makes the point that semigration is different from urbanisation — the movement of people from rural areas in search of better economic opportunity.
Andrew Golding, CEO of the Pam Golding Property Group, says: “The Cape lifestyle and its natural scenic attractions, wide open spaces and good schooling, [attract] ‘semigrators’ seeking a more appealing and healthy way of life, which this region offers in spades.”
Security and the ability to work from home are high on semigrators’ list of priorities. Sound investment, beautiful surrounds, convenient amenities and, for younger families, excellent schools are all factors taken into account.
Cape Town was initially the primary destination, but the trend has spread to more affordable coastal areas, from Blouberg to Milnerton, Somerset West, Pringle Bay, Hermanus and Gansbaai.
Winelands towns such as Paarl, Franschhoek and Stellenbosch are also proving attractive, if more expensive. All are in proximity to the Cape Town metro, the airport, good medical and other facilities and highly desirable schools.
Golding says affordability is significant in inland areas such as Robertson and Montagu. “Here we find an older age group seeking good amenities and affordable homes where the cost of living is lower. They also want to be part of a smaller community where they can enjoy the natural surroundings but still be two hours’ driving away from Cape Town.” Young home buyers, especially first-time buyers, are “flocking” to smaller, more outlying towns such as Malmesbury, Wellington, Worcester, Elgin and Grabouw.
Seeff says Garden Route towns such as George, Mossel Bay, Knysna and Plettenberg Bay are seen as quieter and more wholesome alternatives to Cape Town for raising children. These are also popular for older buyers looking to retire or downscale.
Crime is driving people away from Joburg to Cape Town
— René Stegmann
Some semigrators want to open branches of their existing businesses, or start new businesses.
Lynda Smyth, CEO of 50Plus Skills, moved to Somerset West from Gauteng to test the retirement village market for herself after Covid normalised online working and she no longer had to meet clients in their offices. She says one of the downsides of moving from Gauteng to the Western Cape is that properties of similar size are more expensive. On the upside, service delivery is better. “Coming to the Western Cape felt like arriving in another country,” she says.
Stats SA reported last month that Western Cape building plans passed between January and June 2022 increased by 33.2% (or R17.86bn) in value compared with the same period last year. The value of plans passed in Gauteng was R16.8bn, a decrease of 7.5%. “This is a strong indicator for economic growth and job creation as construction on these projects begins,” says Georgina Maree, spokesperson for the Western Cape finance & economic opportunities department.
Real estate investment trust Spear says its “Western Cape only” investment strategy is proving to be the right one, as the province’s real estate market recovers ahead of that of the rest of SA. CEO Quintin Rossi told shareholders recently: “The effects of semigration and the localisation of supply chain solutions have provided great opportunities.” He said good governance across provincial and metropolitan spheres “enhances the investment appetite for Western Cape real estate”.
Rossi says the growing property rates base will benefit the metro as well as other municipalities.
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