A noticeable trend is reshaping the South African real estate market—more homeowners are selling their homes and relocating to different provinces, a movement known as semigration.
Recent data from Lightstone Property’s 2024 report highlights that one in four homeowners who sell their property and buy a new one are choosing to make interprovincial moves. This marks a significant rise from 2019 when only 16% of homeowners were opting to relocate to another province. As of 2024, that figure has jumped to 27%.
This shift is transforming the housing market, with around 50,000 homeowners participating in this sell-to-buy segment in recent years. Interestingly, the data excludes first-time buyers and sellers who opt not to purchase another home, narrowing the focus on repeat buyers who move across provincial lines. While most homeowners still prefer staying in their home provinces, the percentage of those doing so is steadily declining.
The Semigration Hotspots: Western Cape Leads the Way
Among the most popular destinations for semigrants is the Western Cape. The province’s natural beauty, economic opportunities, and high quality of life continue to attract homeowners from other parts of South Africa. Cape Town, in particular, leads the charge, welcoming over 1,500 new homeowners. Other towns in the province are also seeing a surge in popularity, with Milnerton and Mossel Bay reporting net inflows of 1,249 and 651 residents, respectively. George and Somerset West are also on the rise, each drawing in hundreds of semigrants.
The Lightstone report reveals that 14 of the top 15 towns experiencing a net gain in homeowners are located in the Western Cape, underscoring the region’s allure. Jeffrey’s Bay, located in the Eastern Cape, is the only non-Western Cape town to make the list, though its proximity to the Western Cape border makes it a convenient option for those looking to remain close.
Gauteng and Western Cape Dominate the Market
When it comes to interprovincial movement, Gauteng and the Western Cape dominate the market, accounting for a combined 71% of the sell-to-buy transactions. Gauteng leads with 48%, while the Western Cape holds 23% of this segment. However, Gauteng is witnessing a notable decline in repeat buyers choosing to stay within the province, dropping by 10% over the past five years. This decrease indicates that more Gauteng residents are looking to relocate, with many choosing the Western Cape as their new home.
In contrast, the Western Cape has maintained a relatively stable retention rate, with 87% of homeowners staying within the province—a slight dip from 89% five years ago. This stability, combined with the influx of semigrants, solidifies the Western Cape’s reputation as the preferred destination for those seeking a fresh start.
Shifting Patterns Across Other Provinces
The Western Cape continues to be the top destination for semigrants, but other provinces like the Eastern Cape, Free State, KwaZulu-Natal, Mpumalanga, and Limpopo are seeing significant declines in homeowners choosing to stay, with drops of 9% to 15% among repeat buyers. This indicates a growing trend among South Africans to explore new regions for better opportunities.
Recently, about 3,500 homeowners from Gauteng and 870 from KwaZulu-Natal relocated to the Western Cape, while around 1,600 homeowners from other provinces moved to either Gauteng or the Western Cape.
Semigration is rising due to the Western Cape’s appeal, which includes safety, quality education, job opportunities, and natural beauty. Smaller towns like Mossel Bay, Somerset West, and George attract residents seeking a slower lifestyle with modern amenities, away from the chaos of larger cities. As more South Africans consider relocating for improved quality of life, semigration is expected to influence the real estate market significantly, shaping the country’s housing landscape for years to come.
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First Published on Cape Town etc
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