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South Africans have been semigrating to the Western Cape for years, but this trend may be coming to an end as South Africans flock back to Johannesburg.
This is feedback from the estate agent network, Fine & Country, which explained that over the past few years, the Western Cape has been a prime destination for semigrants seeking a different pace of life, scenic surroundings, and perceived stability.
Cape Town, the Winelands, and the Garden Route have welcomed an influx of professionals, families, and retirees looking for a fresh start.
But a new trend is emerging – many of these semigrants are making their way back to Johannesburg.
Fine & Country explained that the semigration wave was largely fueled by remote work opportunities, lifestyle appeal, and the perception of better governance in certain Western Cape municipalities.
Many professionals believed they could maintain Johannesburg-level incomes while enjoying the benefits of a coastal or countryside lifestyle.
However, a number of factors are contributing to the reversal of this trend.
In the first place, many companies have started revoking their COVID-era work-from-home policies and mandating that employees go back to the office.
While remote work remains prevalent, many top executives and business leaders have found that career progression and high-level networking are still centred in Johannesburg.
A survey by CareerJunction revealed that nearly 60% of South African employers are transitioning back to hybrid or in-office work models, with many of the country’s largest firms headquartered in Joburg.
As collaboration and face-to-face meetings regain importance, professionals are realising that living thousands of kilometres away from corporate headquarters isn’t as feasible as once thought.
On top of that, Johannesburg remains South Africa’s commercial powerhouse, contributing nearly 16% of the country’s GDP.
According to Stats SA, the city accounts for over 40% of all business services output in South Africa, and Sandton alone is home to the JSE and many of Africa’s largest corporates.
“The city has an undeniable economic momentum, and people are recognising that the most lucrative business opportunities remain here,” said John Herbst, CEO of Fine & Country Sub-Saharan Africa.
“We are seeing renewed interest in Johannesburg as professionals and business owners recalibrate their long-term strategies.”
Cape Town’s high cost of living is another factor contributing to the end of South Africa’s semigration trend.
Property prices in Cape Town, particularly in sought-after areas, have continued to rise, often outpacing salary increases.
Lightstone data shows that property prices in Cape Town have increased by nearly 25% over the past five years, compared to Johannesburg’s 12% growth.
The demand for prime locations has led to affordability concerns, making Johannesburg’s real estate market – where buyers get more space and value – an attractive alternative.
According to PayProp’s 2024 Annual Market Report, while Gauteng rental prices closely follow the national average in terms of the percentage of rental properties in each price bracket, the Western Cape is far more expensive than any other province in the country.
In fact, 20.3% of rental properties in the Western Cape were going for over R15,000 during the last quarter of 2024.
Infrastructure and service delivery considerations are also adding to the reverse semigration trend, Fine & Country added.
While Cape Town has consistently been praised for its municipal governance, not all areas in the province offer the same level of service.
Load shedding, water supply issues, and transport challenges remain national concerns, and some semigrants have found that moving did not necessarily shield them from these broader systemic issues.
Johannesburg, meanwhile, continues to see investment in key infrastructure projects, with ongoing improvements in road networks, public transport, and commercial hubs.
As a result of South Africans flocking back to Johannesburg, Fine & Country noted that the city’s property market is experiencing an upward trend.
With the renewed demand for homes in Johannesburg, the local property market is seeing an encouraging upswing. Well-established suburbs, secure estates, and areas offering easy access to business hubs are seeing increased interest.
“Johannesburg’s residential market is showing resilience,” Herbst explained.
“We are seeing strong demand in secure lifestyle estates and high-end suburbs that offer space, security, and proximity to top schools and business districts.”
Developments in areas like Sandton, Bryanston, Fourways, and Midrand are also attracting buyers who want modern amenities and easy access to commercial nodes.
Fourways has transformed into a thriving business and lifestyle hub, with the Fourways Mall redevelopment and surrounding commercial growth making it a prime location for professionals returning to the city, Fine & Country added.
For those considering a return to Johannesburg, now is an opportune time to re-enter the market. Buyers who previously sold properties to semigrate may find themselves reinvesting in areas they once called home – often at competitive prices.
Investors, meanwhile, should take note of the rising demand for secure, well-located homes catering to professionals and families.
source:Goodbye Western Cape – big semigration changes in South Africa – Daily Investor
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