Semigration shift hits the Western Cape

Country and coastal towns in the Western Cape are experiencing a surge in property demand and rising prices, driven by semigration, remote work, retirement, and limited stock.

Jaco Badenhorst, sales manager for Seeff Country and Karoo, said that there has been a significant surge in property transactions in several sought-after country towns this year.

These include the Western Cape towns of Swellendam, Bonnievale, Ladismith, Barrydale, Struisbaai, Riversdale, and Pearly Beach.

“Agents have reported a sharp increase in sales driven by buyers looking to relocate due to healthy local economies and low crime rates,” Badenhorst said.

“The limited stock for sale has made the market highly competitive. Well-priced properties are attracting multiple offers and selling quickly, often within days of being listed.”

Lightstone data shows that over 8,000 transactions worth almost R9.5 billion were concluded across the Cape countryside last year, with about 90% of transactions below R1.5 million.

Freehold houses in the more popular towns averaged between R1.8 million and R2.5 million. “Semigration, retirement, and remote working are big drivers of the demand.”

“Growth in local industries such as the major R4.5 billion Overberg Wind Farm Project near Swellendam is another boost, while more buyers are also turning their holiday homes into their permanent residence.”

Aside from the lifestyle aspects, Badenhorst said the attraction includes the ability to buy a lot more for your money in the country towns. Many people sell up in big cities, move to small towns, and start small businesses.

“The towns mostly offer good infrastructure, access to schools, and proximity to bigger commercial centres,” Badenhorst explained.

“Properties are still overwhelmingly freehold houses, but the sectional title market is growing with new lifestyle and retirement estates coming into the market.”

There are also plenty of vacant plots in many areas and a mix of small holdings, agricultural farms, commercial properties, guest houses, and more.

Demand and prices rise

Towns such as Swellendam, Barrydale, and Riversdale have active agriculture, tourism, and small business sectors, which appeal to new residents.

“An influx of workers and professionals has boosted demand for rental homes in and around Swellendam and Bredasdorp.”

Badenhorst added that many landlords are reporting full occupancy, and rental prices are beginning to reflect the increasing demand.

Val Anderton and Marinda Roux, agents with Seeff Swellendam, said they have seen an increase in enquiries from Gauteng and Pretoria.

Many of these are young families looking to relocate due to the excellent schools and wholesome environment to raise children.

While the average price is in the R2.4 million to R3.4 million range, they are seeing interest in higher-priced properties. Rentals are also in high demand.

There’s also growing interest in estates such as the new Oewerlust Estate, with properties selling from R2.417 million, also attracting investment buyers.

“The Barrydale area is very active in the R2.5 million range, with buyers coming from all over, especially the Cape, some downscaling or retiring, and others working remotely”, said Beate Joubert, an agent with Seeff.

Large homes suitable for conversion to guest houses are also in demand. People are also moving to coastal towns such as Still Bay and Gansbaai.

Adel Regtien, an agent with Seeff Still Bay, noted the town has always been a popular holiday and retirement destination and has grown significantly over the years.

An increasing number of permanent residents are choosing to settle in the area thanks to its proximity to the Garden Route and its location just a few hours from Cape Town.

According to Badenhorst, property values in high-demand areas will keep rising as more buyers seek country living. Another coastal hotspot, Gansbaai, has also seen a significant surge in activity and prices over the past few years.

The average property price has climbed to approximately R2.25 million – an increase of over R1 million in just four years. “This coastal gem is drawing strong interest from across South Africa,” said Seeff’s Anet Rossouw.

“Nearly 60% of buyers are from Gauteng, with a further 10% from other provinces, and the remaining buyers are primarily from the Western Cape in search of weekend getaway homes.”

Rossouw said that everyone wants a spot by the sea, but it is becoming increasingly difficult given the growth in demand.

“It’s now nearly impossible to find an average three-bedroom, two-bathroom home with a double garage for under R2.3 million. With rising demand and limited supply, time is of the essence for buyers.”

Badenhorst stressed that potential buyers should come prepared to avoid losing out on opportunities, since they may be limited.

“Have your finances in order and work with an experienced agent who can help you move quickly when the right property becomes available.”