Property

Goodbye Cape Town – South Africans are semigrating to these small towns

Kirsten Minnaar • 1 February 2026

As affordability pressures rise in major metros, South Africans are increasingly semigrating to smaller coastal and lifestyle towns in search of better value, a higher quality of life, and strong property growth.

Over the past few years, there has been a steady decline in fully remote work positions and formalised return-to-office mandates from major employers.

While this has drawn people back to economic hubs and major metros, Pam Golding Property group CEO Dr Andrew Golding told Daily Investor that semigration has evolved in 2025.

Although it has slowed somewhat, the flow of people semigrating to the Western Cape has continued.

“This is coupled with a ‘reverse semigration’ trend, which sees a partial return of individuals to Gauteng, primarily driven by job opportunities and the rising cost of residential property in coastal areas such as Cape Town,” Golding said.

“That said, as the Western Cape becomes less affordable, prospective buyers are looking for similar lifestyles in smaller towns, including those in other regions.”

He explained that the Eastern Cape, particularly East London, Gqeberha and other areas such as the KwaZulu-Natal south coast, have emerged as new semigration hotspots, offering larger properties at lower prices.

At the same time, smaller, relatively more affordable coastal towns like George and Knysna have also seen a sharp rise in popularity.

This is confirmed by building statistics reflecting sharp increases in plans passed for these smaller towns in recent years.

“There is no doubt that the character and charm of smaller coastal towns continue to draw a broad cross-section of home buyers seeking a more relaxed, quality lifestyle, as well as value-for-money residences and location accessibility.”

According to Golding, appealing lifestyle and value are key considerations for semigrants to such towns. However, other factors are also drawing buyers.

This includes the effectiveness of local municipalities, the availability of medical facilities, the climate, and accessibility to a city or airport within about 4 hours.

Buyers looking to relocate to coastal or other small towns range across the spectrum from retirees to younger generations.

Younger buyers are increasingly seeking a more desirable environment and a balanced lifestyle to raise a family.

This is particularly true for those with the option to work from home or even start a new business in a different location, and coastal living very often fits the bill.

The Western Cape’s small town semigration hotspots

Golding highlighted several small towns with impressive property price growth, which is mainly attributable to the fact that they all share a number of characteristics, contributing to increased demand, thereby pushing up prices:

Lifestyle migration: homeowners are attracted by the appealing quality of the lifestyle
Affordability compared to metro house prices and cost of living
Investors are focusing on small towns with high rental demand, lower entry prices and strong long-term price appreciation potential.

First, Golding highlighted Herolds Bay along the Garden Route. Prior to 2021, the median sales price in Herolds Bay was R2.3 million or lower. It ticked up above R3 million in 2021 and then above R4 million from 2022 onwards.

In 2025, the median sales price for freehold homes was R4.995 million, an increase of 117.1% over the past decade. Similarly robust increases in the median sales price are evident in both sectional title and vacant plot sales.

Also located in the Western Cape, Golding said Langebaan has seen a marked increase in sales activity in Langebaan since COVID, and median sales prices have risen by 63.4% since 2016.

Despite a median price of R2.32 million in 2025, there were many sales in the higher price bands. There were 153 sales in the R3 million-R5 million price band and a further 49 sales in the over R5 million price band.

The median sales price for sectional title properties has risen by 138% over the past decade, Golding noted.

In the five years pre-COVID, freehold sales – which comprise approximately 90% of the total housing stock – averaged around 385 units each year. A total of 21 new plots were sold in 2025, all located within estates.

Semigration hotspots outside the Western Cape

Small towns outside of the Western Cape are also cementing themselves as semigration hotspots. This includes Jeffrey’s Bay in the Eastern Cape.

The surfing mecca has seen strong growth in the freehold median sales price from R0.99 million in 2016 to R1.81 million in 2025, an increase of 82.8% over the period. Sectional title prices have also seen a similarly robust increase.

After the post-COVID surge, housing sales activity slowed but settled at a level slightly stronger than pre-COVID levels.

In 2025, buyers were predominantly mature (37%) and middle-aged (32%), while 40% of stable owners are retirees.

Despite the fairly low median sales price, in 2025, there were a number of high-end sales: 51 in the R3 million-R5 million price band and a further 11 in the over R5 million price band.

Salt Rock, which is located along KwaZulu-Natal’s North Coast, has also seen a significant increase in sectional title sales activity since COVID.

Sectional title sales of around 250 per annum were common before then, but ticked up and remained elevated post-COVID.

In 2025, 453 sectional title units were sold, which is the highest in a decade. However, there has been no noticeable increase in the sale prices of sectional title units. In contrast, freehold sales activity showed little change post-COVID.

However, Golding noted that sales prices have risen strongly, with pre-COVID median sales prices ranging from R2.5 million to R3 million, but since then varying between R4.3 million and R5.3 million.

A total of 67 new homes were sold in 2025, the majority comprising sectional title homes, while 11 were freehold homes located within estates, which sold at an average price of R4.399 million.

Finally, Golding highlighted Hoedspruit, in Limpopo, as a semigration hotspot. The town has experienced a robust increase in both sales activity and prices achieved in the years since COVID.

In 2023, the median sales price rose above R2 million for the first time and in 2024 breached R3 million for the first time, rising to R3.5 million in 2025.

This represented an increase of 154.5% from 2016. Sectional title prices rose by 222% from R0.5 million in 2016 to R1.61 million in 2025.

Post-COVID, freehold sales activity has remained resilient at elevated levels while sectional title sales activity soared from below 25 units each year for most of the past decade to 144 units last year.

Ninety freehold homes were sold last year, all of which were located in estates, while 43 new vacant plots were sold, also all located within estates.

Of the total residential properties sold last year, 39 were priced between R3 million and R5 million, while 27 were priced above R5 million.

Going forward, Golding said 2026 looks like it will continue to offer very sound prospects in the property market as interest rates continue to ease, improving affordability, and banks remain competitive on lending.

These factors will increase consumer appetite for residential property acquisitions, while SA’s GDP and revenue collections continue to increase, which, combined, provide for a stable and encouraging outlook for the year.

Golding noted that South Africa’s luxury market is expected to experience ongoing steady demand.

However, the bulk of activity in major metros is likely to be focused on affordable segments and value-driven suburbs as lower interest rates make homeownership more accessible for first-time buyers.

“Although Cape Town is likely to remain the strongest metro, high prices are likely to push many buyers into surrounding small towns, including coastal and ‘lifestyle’ towns.”