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South Africans are embarking on a journey of relocation within their own country, sparking a new trend in the real estate market known as semigration. According to the latest report by Lightstone Property, there is a significant rise in homeowners selling their residences and moving to different provinces—a trend from which the Western Cape, in particular, benefits greatly.
Semigration has seen the proportion of homeowners making interprovincial moves increase from 16% in 2019 to 27% in 2024. This shift involves approximately 50,000 homeowners, affecting the sell-to-buy market segment. Though the majority still choose to stay within their current province, the growing movement towards new territories signifies a transformation in the housing market.
The Western Cape stands out as the prime location for many of these migrants, enticing over 1,500 new homeowners to Cape Town alone. Following closely are other towns within the province, including Milnerton and Mossel Bay, which have also seen an uptick in incoming residents, as well as George and Somerset West. Out of the top 15 towns gaining homeowners, 14 are in the Western Cape, with Jeffrey's Bay in the Eastern Cape being the notable exception.
The most significant semigration traffic flows from Gauteng, with many leaving the commercial hub for greener pastures in the Western Cape. Despite Gauteng's large share of sell-to-buy transactions, the province has experienced a drop in repeat buyer retention. Conversely, the Western Cape successfully retains 87% of its homeowners, barely a change from five years prior. This retention, coupled with the new semigrant influx, bolsters the region's preferred status.
The motivation behind semigration is multi-faceted: the Western Cape boasts enhanced safety, educational standards, and employment prospects, alongside its natural splendor. The allure of trading a fast-paced urban environment for the calmer, amenity-rich towns like Mossel Bay, Somerset West, and George epitomizes the pursuit of quality of life driving the trend.
With South Africans increasingly prioritizing better living conditions, semigration is likely to continue its upward trajectory, reshaping the housing market and demographic landscape of the country well into the future.