Many South Africans kiss the Western Cape goodbye

After years of South Africans flocking to the Western Cape, many people are returning to Gauteng, which offers some of the best value for homebuyers.

This is according to Seeff Property Group, which said that the current reverse emigration trend is not surprising.

After two flat years, the market is picking up steam, fuelled by a mix of those returning and an influx of people searching for economic opportunities.

According to a Lightstone report, Gauteng has the highest number of people moving from rural to urban areas. They often enter the rental market first, and once their financial position improves, they will enter the purchasing market.

Aspirational buyers are a major component of the Gauteng metro property markets, and they often move up the price ladder over time.

According to various Seeff branches, property affordability and economic opportunity are the primary reasons for those returning to the Gauteng metros.

“Buyers find they can do much better in the Gauteng housing markets, and often their earnings as well,” the group explained.

Samuel Seeff, chairman of the Seeff Property Group, said that the marked decline in sales volumes over the last two years has meant that prices have largely stalled.

By buying now at the bottom of the sales cycle, you can benefit from capital growth once the market regains momentum. For example, the average price for Joburg has remained static at around R1.3 million since 2019.

Although it increased briefly to R1.4 million in 2023, it dipped again to R1.3 million in 2024. Meanwhile, the average for the Western Cape is now at R1.9 million, having grown notably over the last five years.

More for less

Gauteng prices have remained largely in check, and you can buy a lot more square meterage in Joburg, Seeff explained.

This has created an unprecedented buying opportunity across the Joburg, Tshwane and Ekurhuleni metros.

Many suburbs offer entry-level properties from R450,000 to R600,000. Property below R1.21 million is also exempt from transfer duty, which is a further saving for buyers.

Given the high-demand rental market, rental investors also have an opportunity.

Christa Roos, licensee for Seeff Helderkruin and surrounds, said that there is excitement in the market, with interest rate cuts providing great opportunities for buyers.

Suburbs on the western side of Joburg also offer excellent value for buyers.

The highest demand is in the R1 million to R1.5 million range, and there is an opportunity for sellers. First-time buyers can, for example, find sectional titles and small houses in the R700,000 to R1 million range.

Families usually look in Witpoortjie, where properties go for around R1.35 million, and in Kloofendal, Helderkruin, Wilro Park and Roodekrans, where you can buy below R1.75 million.

These areas are also popular for rentals, which move quickly in the R15,000-plus per month price range. Pet-friendly properties in particular are in big demand, and there’s always an opportunity for investors.

According to Rochelle Holland, sales manager for Seeff Joburg North-West, they see an influx of people coming from the Cape, often renting first, then buying in the area.

Most affordable areas include Strubens Valley, Wilgeheuwel, Radiokop, Allen’s Nek, and Honeydew, which offer good homes in the R800,000 to R2.8 million range.

Soweto offers excellent value

Khosi Sibiya, licensee for Seeff Soweto, said Soweto is almost unbeaten for excellent value for those looking to get a first foot onto the property ladder.

Lower rates mean even more affordability, which could spark a buyer frenzy, and there’s good value to choose from, she says.

Best value areas include Protea Glen with prices going for around R680,000 to R750,000, and Chiawelo, where property falls go for R650,000 to R850,000.

Pimville offer great value, and properties here fall in the R900,000-R1.5 million price bracket. You can also find family houses from R900,000 in Pimville and Rockville.

Pretoria/Tshwane is another area offering particularly good value, the Seeff Group explained.

Tiaan Pretorius, manager for Seeff Centurion, explained that there are affordable options for family houses in the city.

Areas such as Die Hoewes, The Reeds, and Heuweloord offer sectional titles from just R600,000. Rooihuiskraal prices start from R1.5 million, Doringkloof from R1.75 million, and Eldoraigne from R2.0 million, said.

The luxury price bands also offer significantly more value, including areas around Sandton, Johannesburg North and Pretoria East.

The average transaction price for a luxury home in Gauteng metros in 2024 was R4.4 million, much lower than in Cape Town, which is around R7.6 million, a 35% increase compared to 2020.

Gerhard van der Linde, MD for Seeff Pretoria East, said that while most sales are below R5 million, high-end properties reached prices of up to R12 million in Lynwood, R10.9 million in the Mooikloof Equestrian Estate, and R17 million in the Woodhill Golf Estate over the last year.