Why Gauteng is winning back SA’s Semigration Crowd

Key Takeaways

• Affordability and better value are driving many semigrants to reconsider Johannesburg over Cape Town’s soaring living costs.
• Back-to-office mandates and Gauteng’s proximity to business hubs are reshaping relocation decisions.
• Buyers get more for less in Gauteng: lower prices, better access to finance, and more space for growing families.
  

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"We're seeing real momentum shift as semigrants realise that Johannesburg offers long-term value and lifestyle at a far more sustainable price." Jonathan Kohler, CEO of Landsdowne Property Group

Why Gauteng Is Pulling Semigrants Back from Cape Town

Once seen as a one-way street, the semigration trend is now reversing. Here's why more South Africans particularly from Cape Town are returning to Gauteng:

1. Cost of Living

• Cape Town rentals and rates are increasingly unaffordable. A one-bedroom apartment in Cape Town can cost R16,000/month vs R6,000 in northern Joburg.
• Municipal rate hikes and lifestyle inflation are making everyday living more expensive in the Western Cape.

2. Property Prices

• Average home price in Johannesburg: R1.3 million. In Cape Town: R2.1 million. That gap means larger homes, more outdoor space, and better value up north.
• Middle- and lower-income buyers simply get more for their money in Gauteng.

3. Workplace Trends

• With many companies enforcing return-to-office policies, employees are gravitating back to business hubs like Sandton.
• Cape Town’s longer commutes and lack of public transport infrastructure make Joburg more practical.

4. Economic Opportunity

• Johannesburg remains South Africa’s financial and corporate heart. Average salaries in finance, tech, and professional services often outpace Cape Town’s tourism-heavy job market.
• For ambitious professionals, Gauteng offers upward mobility and access to larger markets.

5. Market Stabilisation & Growth Potential

• Lightstone reports indicate the Gauteng property market has likely bottomed out, signalling strong future upside.
• Affordable and mid-value homes are in high demand, with suburbs like Discovery, Amorosa, and Bassonia leading the charge.

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Property Market Analysis & Outlook

According to the latest BetterBond Property Brief:

• Home loan applications are up 2.2% year-on-year after a tough 2024.
• Average purchase prices now sit at R1.6 million, with first-time buyers averaging R1.28 million.
• Deposit requirements are down by nearly 9%, improving affordability for new entrants.

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Although building completions in Gauteng declined by 30%, this is not necessarily a negative indicator. Instead, it reflects the relative affordability and access to existing housing stock a market where value is still accessible. In contrast, Cape Town saw a 24% rise in new builds, largely serving the upper end of the market.

Longer time on market for high-end homes in Johannesburg shows price sensitivity. Still, the more affordable segments are thriving, especially with better financing conditions.

Landsdowne Property Group’s Role in the Shift

Landsdowne Property Group one of South Africa’s largest managing agents with over 40,000 units under management has seen this shift firsthand. Active across sales, rentals, estate management, and financial solutions, Landsdowne is uniquely positioned to track movement trends and meet growing demand in Johannesburg’s mid-market and sectional title sectors.

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"Our clients are increasingly prioritising value, space, and security over views," says Kohler. "And Johannesburg is delivering on all three."

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As semigration matures, real estate investors and homeowners must adapt. Cape Town still remains desirable particularly for short-term rentals and luxury markets but for long-term affordability, economic opportunity, and family life, Gauteng is winning back its own.

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