Unpacking the facts and figures surround surge in semigration to the Western Cape
Category News
In recent years, the Western Cape's property market has seen a massive surge, as a large number of South Africans are making the decision to move away from other provinces.
There are a number of reasons for this trend, the most prevalent being quality of life, safety and security, and economic opportunity. The Western Cape is renowned for offering a great lifestyle thanks to its beautiful beaches, scenic mountains, and plentiful vineyards, but it's also well-known for offering some of the best service delivery in the country. Besides that, higher crime rates in provinces like Gauteng have driven many individuals to seek calmer, safer areas in the Western Cape.
Now, with all of this in mind, how prevalent is this trend in the property market actually?
From 2011 to 2022, the province experienced a net migration of approximately 295,908 people, while only 112,520 decided to leave. This resulted in a net increase of 183,388 individuals, which marks the highest increase among all provinces in South Africa in the same time frame.
This trend has also continued strongly, as in the first quarter of 2024, the Western Cape accounted for 29% of semigration applications, a significant increase from just 14% at the beginning of 2020. This indicates a doubling of interest in moving to the province over this period.
To put this into perspective, the adult population in areas like Somerset West and Stellenbosch is continuing to increase significantly each month, with about 53 new families moving into these towns each month.
This semigration trend has also sparked further growth in the property development sector to meet the growing demand for property in the province. Building plans passed in the Western Cape amounted to around R30 billion between January and November 2023, significantly surpassing totals from other provinces.
No industry has felt this shift more than the property market. Between 2019 and 2023, the Western Cape saw sales of properties priced between R100,000 and R20 million rise from 23% to 27% of total sales. In contrast, Gauteng experienced a decline from 43% to 29% during the same period.
And, the same applies to the rental market. The average rental price in the Western Cape reached approximately R10,118, in late 2023, reflecting a year-on-year increase of 3.9%, making it the most expensive province fro rentals in South Africa.
If you, too, are interested in making the move to the Western Cape, then be sure to get in touch with one of our agents from Seeff City Bowl and Atlantic Seaboard.
Author: Seeff Atlantic Seaboard & City Bowl
