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STATEMENT BY THE MAYORAL COMMITTEE MEMBER FOR ECONOMIC GROWTH, ALDERMAN JAMES VOS

Semigration is when a buyer sells a property in one province and purchases a new one in a different province. Movement to Cape Town, Milnerton, and Durbanville, were highlighted as areas that are seeing some of the most semigration. The main findings of an assessment of semigration trends were recently presented by Lightstone Property group to the virtual Real Estate Industry Summit (REIS).  Read more below:

‘The latest property data that we’re seeing is a clear demonstration of Cape Town’s appeal as a desirable city in which to live, work, and invest. With a fantastic balance between work and leisure opportunities, it’s great to see that the Western Cape, and specifically the Cape Town metro are a compelling destination for South Africans moving from other parts of the country,’ said the City’s Mayoral Committee Member for Economic Growth, Alderman James Vos.

‘We are pleased that residents in other parts of the country are seeing the value of living in Cape Town, as this is in line with our vision of making Cape Town the beacon of hope for all South Africans. Our good governance – Ratings Afrika named Cape Town as the most sustainable metro, and the Consulta Consumer Satisfaction Index rated our metro as most trusted for basic service delivery – creates a functional municipality based on opportunity and access to services. South Africans are seeing this and also the work-life balance that living in Cape Town offers. While this data is a positive reflection on Cape Town and the Western Cape, there is still work to do to make sure all our residents are proud to live in Cape Town,’ added Alderman Vos.

Reasons for semigration to the Western Cape?

The Real Estate Industry Summit (REIS) heard that:

  •        Most people are moving to the Western Cape, up to 35% in 2021 from 31% in 2020.
  •        Most people moving to the Western Cape are in the 49-64 age group, while the 36-49 age group makes up the second-largest category;
  •        People moved to cities and towns in municipalities with functional service delivery.
  •        A substantial increase of homeowners moving out of Gauteng – despite it being South Africa’s economic centre – an increase from 39% in 2019 and 2020 to 43% in 2021, the highest it has been in the last seven years;
  •        The second biggest migration was from Kwa-Zulu Natal, at an average of 14 percent;
  •        And third, was the Eastern Cape which has seen an increase from 7% in 2015 to 9% in 2021.

Transfers since 2008 have shifted away from under the R500 000 band which was the leading category at the time to properties in the R1m – R1,3m band and is the leading category since 2018.

The Lightstone report noted that Covid-19 had a substantial impact on luxury properties over R3 million, but this has shown a strong recovery in recent months. Low, mid and high-value homes are also recovering, and the market overall is moving upwards.

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