Mossel Bay's Semigration Surge: The New Hotspot in the Western Cape's Property Boom

The quaint coastal town of Mossel Bay, nestled along the scenic Garden Route in the Western Cape, is undergoing a remarkable transformation. It has emerged as South Africa’s latest semigration hotspot, with a significant influx of home-buyers from other provinces fueling a sharp increase in property prices.

According to current data from Lightstone, the Western Cape maintains its position as the premier semigration destination within South Africa, attracting 6,406 households in 2023. Gauteng trails significantly with 1,971. The thriving market reflects national trends of South Africans seeking better lifestyle opportunities along the coast.

Estate agents have reported that Mossel Bay saw the highest number of new residents in the region last year, with consequential effects on the housing market. Following a substantial post-pandemic rush in 2021/22, where property transactions in the town reached a precipitous high of 1,160 registrations, the market continues its vigorous performance.

Peter Máre of Lew Geffen Sotheby’s in Mossel Bay notes that houses now have a considerably higher asking price. A three-bedroom family home, which could be acquired for around R1.8 million in 2021, now falls within a R2.5m to R3.8m range, while the upper-tier properties are entering the R5m to R10m bracket. Mossel Bay's popularity among upcountry buyers is largely attributed to its proximity to George airport and the appealing lifestyle. Moreover, it boasts a well-run, financially sound municipality.

Comparison with other towns along the Garden Route indicates a pervasive upward trend. Plettenberg Bay's property values saw a significant 24% hike in 2023, while Knysna's prices catapulted from an average of R2m in 2021 to R3.51m this year. These areas have experienced a surge in demand for upscale properties, with listings surpassing the R50m mark.

A notable concern, however, is the steep decline in affordable housing availability. High demand, coupled with limited supply due to geographical constraints and other factors, creates a challenging situation for those seeking economical housing options.

As estate agencies observe, the allure of coastal living in Western Cape towns, including Hermanus, has not waned, but real estate prices have escalated due to the semigration trend that continues unabated, potentially altering the demographics and housing landscape of these cherished coastal hideaways.