Western Cape powers ahead in SA’s Housing Boom

• Western Cape attracts 38% of SA’s total new housing investment value.
• Strong semigration demand fuels double-digit growth in building activity.
• BetterBond data shows confidence rising as construction costs ease.

The Western Cape’s relentless property surge

The Western Cape continues to dominate South Africa’s housing landscape, capturing 38% of the total value of new residential building plans passed so far this year. Between January and July, the country recorded R26 billion worth of building plans, and despite a slight national dip, the Western Cape stands out as the clear outperformer.

According to BetterBond’s October Property Brief, the province accounted for more than a third of all new residential building plan values, recording double-digit year-on-year growth a testament to sustained housing demand in the region.

Why the Western Cape keeps winning

‍“Buyer demand for homes in the Western Cape remains robust,” says Bradd Bendall, BetterBond’s National Head of Sales. “The province offers an appealing lifestyle with coastal and country destinations, excellent schools, sound municipal management and strong economic opportunities.
‍It’s the destination of choice for everyone from young professionals and families to retirees and overseas visitors.”

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Semigration remains a dominant force. Bendall notes, “We’re seeing ongoing interest from buyers relocating from Gauteng and KwaZulu-Natal who want a better quality of life. Many choose established suburbs such as Rondebosch and Constantia, while others favour lifestyle estates offering security, convenience and amenities.”

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Cape Town: The beating heart of the boom

Cape Town’s property market continues to attract developers and investors. The State of Cape Town Central City Report 2024 reveals R9 billion worth of investment in the CBD alone, with 27 new developments, twelve of them residential and seven mixed-use.

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“Cape Town has evolved into one of the world’s top digital cities,” says Bendall. “It’s inner city appeals to digital nomads, postgraduates and young professionals drawn by coworking spaces, walkability and vibrant social life.”

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Data Points to renewed confidence

‍While the Eastern Cape showed the highest year-on-year percentage growth in building plans (17%), it still trails far behind the Western Cape’s massive base, 87% higher in value.

Broader economic indicators also suggest a rebound. The Construction Input Price Index (CIPI) has declined, meaning lower building material costs, while the Residential Property Price Index (RPPI) is rising a sign of improving demand and pricing stability.

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“This environment benefits both developers and buyers,” says Bendall. “Lower input costs and rising demand support market confidence. Our data shows bond application volumes up 11.6% quarter-on-quarter and 14.6% year-on-year, up 26% since late 2022.”

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How to invest going forward

For investors, the message is clear: the Western Cape continues to offer strong fundamentals, lifestyle appeal, and reliable long-term value. Lower construction costs and a friendlier lending climate, following five rate cuts since 2024, make this an ideal window to act.

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“These are encouraging signs for anyone thinking about buying or building,” concludes Bendall. “Affordability, demand and confidence are aligning and nowhere more so than in the Western Cape.”

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