Semigration in South Africa

A recent presentation by Lightstone Properties reveals Gauteng residents and semigrants from other South African provinces favour the Western Cape when buying new property, and that estate living tops the residential wish list of those relocating to the Garden Route. Here we explore the reasons behind these trends.

Highveld exodus

Semigration is the term used when a buyer sells a property and purchases a new one in a different province. This trend has become increasingly prevalent in South Africa with quality of life, local government, and Covid (viz: working remotely) informing citizens’ decisions on relocation.

According to analysts at Lightstone, there is a substantial hike – from 39% in 2019 to 43% in 2021 – in the number of homeowners leaving Gauteng. And for those wanting in, SA’s richest province is less appealing than ever: only 21% of semigrants moved to Gauteng in 2021, down from 27% the previous year, and 29% in 2015.

Fairest Cape preferred

Those moving to the Western Cape increased to 35% in 2021, from 31% the previous year. The province has always been attractive for those in pursuit of a lifestyle change, and newcomer numbers were even higher (36%) in 2016/7.

According to Lightstone, the trend of swapping metropolitan areas for smaller or larger towns or Cape Town can be attributed to “a move away from crime-and-grime and towards a slower, safer, quality lifestyle”.

Yes, the Mother City and its mountain have incontrovertible allure, but last year’s stats reveal Mossel Bay as top destination for semigrants to the Western Cape. Sharing the podium are Milnerton and the city of Cape Town.

Well-run municipalities rock

Semigrants are attracted to municipalities that are typically best managed in the Western Cape, and Mossel Bay is one of the municipalities singled out as well run.

First citizen Dirk Kotzé explains that a big part of his council’s work revolves around the marketing of Mossel Bay. ‘That is why we strive to attain clean audits, and spend a lot of money on the security sector – not strictly a municipal function, but essential to create a safe haven for those planning to invest here.’

In line with the Western Cape Energy Resilience Project, Mayor Kotzé’s team works towards being self-sustaining in terms of power and water use. When Covid’s debilitating effects hit, the Great Escape to Mossel Bay marketing campaign kicked in.

‘Since our economy is built on tourism, the campaign was launched to create awareness countrywide. The Lightstone stats show that our various strategies are working well.

‘Our economy is open, and we welcome investors and tourists. Their spend helps us with our balancing act of supporting residents without the wherewithal to pay for services or necessities.

‘In terms of the property market, our semigrants make it easier for council to balance books while providing world-class services, and for residents to enjoy a quality life,’ says Kotzé.

Estates rule the Route

Tables accompanying the Lightstone presentation revealed many other interesting bits: most people moving from Gauteng are aged 49-64, and most of them move to the Western Cape; 46% are more likely to move to a new property of greater value and smaller size; 34% will downgrade size/value, and 20% will upgrade size and downgrade value.

Notably, a large percentage of those who move to the Garden Route prefer estate living over freehold or sectional title options. In Mossel Bay 94% of residents preferred to live in estates, compared to 68% in freehold and 41% in sectional title.

For George it was 92% (53%, 5%), and Plettenberg Bay and Knysna both at 41% for estates and 23% for freehold homes; sectional title properties sit at 11% (Plett) and 5% (Knysna) respectively.