Over the past few years, semigration – the trend of South Africans relocating from one province to another for lifestyle, work, or financial reasons – has reshaped the country’s property market. When remote work became the norm during and after COVID-19, many professionals and families left inland cities for coastal destinations like the Western Cape, KwaZulu-Natal, and the Eastern Cape. Now, however, the tide is shifting.
With more companies requiring employees to return to the office – especially in Johannesburg and Pretoria – some of those who relocated are making their way back.
What does this mean for Cape Town’s property market?
Despite the uptick in reverse semigration, demand for property in the Western Cape remains exceptionally strong, according to Roger Lotz, franchisee at the Rawson Properties Helderberg Group.
“Cape Town continues to be one of South Africa’s most desirable places to live,” says Lotz. “While most people are heading back to Gauteng, we’re still seeing strong interest from buyers as well as international investors. Cape property is highly sought after, and that’s not changing anytime soon.”
What’s driving reverse semigration?
A recent survey by CareerJunction found that nearly 60% of South African employers are now requiring employees to return to the office. Since many large corporations are headquartered in Johannesburg, professionals who moved to coastal areas during the work-from-home boom are now needing to return.
“Many reverse semigrators are choosing to hold onto their Western Cape properties as rental investments rather than selling, boosting the rental market” says Lotz. “That speaks volumes about their confidence in the long-term value of Cape property,” he says.
Cape Town’s property market remains resilient
Even as some professionals return to inland urban hubs, the Western Cape’s property market continues to thrive. Several key factors are keeping demand high:
- Cape Town remains a lifestyle destination – The quality of life, scenic beauty, and safety continue to attract homebuyers.
- Stock is still in high demand – Demand continues to exceed supply, meaning well-priced properties sell quickly.
- Investment confidence is high – Many property owners are opting to rent out their Cape properties instead of selling, highlighting strong investor confidence.
- New semigrants keep coming – While some are relocating back inland, others – especially retirees, entrepreneurs, and full time remote workers – are still semigrating to the Cape.
Johannesburg market sees renewed interest
While Cape Town’s market is thriving, Johannesburg and Pretoria are seeing an uptick in demand from professionals moving back for work. Some buyers are taking advantage of Gauteng’s more affordable property market, particularly in areas close to key business hubs like Sandton, Rosebank, and Midrand. Lotz acknowledges this shift and remains confident in the resilience of Cape Town’s market.
A positive outlook for Western Cape property
For buyers, the continued demand for Cape properties makes it a solid long-term investment. Prices remain stable or are increasing in sought-after areas, and well-located properties are in high demand.
For sellers, the market remains active, and strong buyer interest means well-priced properties are selling quickly. For those considering whether to sell or rent out their property, keeping it as an investment is proving to be a smart option.
As Lotz puts it: “Even as some people move back for work, Cape Town remains the dream destination. The property market here is still thriving, and investor confidence is as strong as ever. That’s not about to change any time soon.”
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Phuti Mahanyele – Former CEO of Shanduka Group, current Sigma Capital Executive Chair: At 17, she left South Africa to pursue her studies, and obtained a bachelor\’s degree in Economics and earned an MBA from De Montfort University. She would also later go on to complete Harvard University\’s Kennedy School of Government executive education programme. Determined to be a success, Mahanyele joined an international investment banking company specialising in infrastructural development in New York City called Fieldstone Private Capital Group. She later became Vice-President of the firm, then transferred to the company\’s office in South Africa. After returning to South Africa, she became the head of Project Finance South Africa at the Development Back of Southern Africa. She was headhunted, and advanced to the position of managing director of Shanduka Energy, later becoming the CEO of Shanduka Group. She would go on to hold this position for 10 years, securing major deals including those with Coca-Cola and McDonalds. In 2007, she was selected as a Global Young Leader by the World Economic Forum. In 2009, she won the Rutgers Visions of Excellence award and The Most Influential Woman in Government and Business award from Rutgers University. In 2011, she was named one of the 20 youngest power women in Africa by Forbes. In 2013, she won the Distinguished Achievement award by the Douglass Society.