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As people leave their urban homes in search of safer, more affordable areas with improved service delivery and perhaps less load shedding, the South African property market is experiencing a tectonic shift, with demand surging in areas once considered idyllic but remote.
Towns that were once overlooked are now becoming vibrant hubs of activity, as new arrivals bring fresh perspectives, energy, and investment to these previously quiet corners of the country.
Estate Living chatted to property developers from all over the country to gain their perspective on the shift.
Devmco Group Portfolio Manager Brad Winstanley shares that upcountry buyers are still being drawn by the appealing lifestyle on offer in the Western Cape and KZN – and that the semigration trend was initially brought in by a wave of remote working during Covid, particularly in the secure gated estate market.
‘This demand has resulted in many new schemes and developments being brought to market. In Sibaya, the Salta development generated over a billion Rand worth of sales at launch and was largely sold out within the first three months thereafter. Many of these sales were from outside of KZN. This has certainly led to elevated property prices in specific areas, Sibaya represents one of the best-performing nodes in the country over the last five years,’ says Brad.
Three variants of semigration
Sentinel Homes national property trends expert and co-founder, Renier Kriek agrees that KZN and most notably, the Western Cape are favoured semigration destinations.
‘Before Covid-19, semigration often took one of two forms. Firstly, whole businesses or business units would relocate to the Western Cape or KZN with their employees in tow. This practice continues as businesses seek better service delivery, such as the City of Cape Town’s ability to shield its residents and businesses from some of the effects of load shedding,’ he says.
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‘The second form was people who quit their jobs and accepted a pay cut to enjoy the so-called “lifestyle dividend” of living closer to the shore or in rural areas or decided to move their families and commute to Gauteng by plane, to arrive at the same result.’
He says that after Covid-19, which normalised remote working, a third variant of the semigration trend arose. Remote workers can now work from almost anywhere. This new development has led to increased semigration to outlying or previously less favoured areas, such as small coastal towns, where whole businesses and single job-seekers would rarely have ventured.
West Coast boom
Renier highlights that West Coast towns such as Langebaan, St Helena Bay and Paternoster are seeing the effects of the trend, and that the market for real estate in St Helena Bay, in particular is booming with 23 real estate agencies at last count, each with a number of agents selling and renting out property.
He also shares that previously popular locations like the northern suburbs of Cape Town have become much busier due to semigration, with the roadways surrounding the city showing signs of being overburdened.
However, other favourite semigration destinations, like Mossel Bay, are enjoying beneficial growth and urbanisation. In Mossel Bay’s case, this is due to its close proximity to George Airport, which makes commuting between Johannesburg and Cape Town’s suburbs easy and convenient.
Semigration impacting senior citizens
CEO of Circle Senior Living Corene Breedt-Rammutla shares that another effect of immigration and semigration is that certain areas are seeing a loss of individuals in certain income groups, which creates a lot of stock in the market in those areas.
‘More importantly, in our business we are seeing more and more the effect of retirees being left behind with no support network as their children leave for greener pastures. Senior living developers are having to think about how our buildings are set up and what our offerings are, in order to help curb loneliness, recreate support networks and create communities where senior residents feel safe and secure.’
Semigration has become a powerful force in the South African property market, redefining where and how people choose to live. This trend not only impacts real estate but also prompts us to consider the broader social and communal implications, challenging us to build more inclusive, supportive, and resilient communities.
