Over the past 26 years, the Western Cape has become South Africa’s third-largest province, mainly due to a significant increase in people choosing to relocate there, Cape {town} Etc reports.
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Strong infrastructure, high quality of living and impressive service delivery have been among the key drivers in this trend, and it is reflected in the booming property market.
In particular, a noticeable increase in both the demand for affordable homes and the stabilisation of high-end property values has been noted.
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According to Rainmaker Marketing’s (RMM) Property Market Report Western Cape 2024, more affordable homes were in high demand in late 2023. This led to a shortage as more people chose to buy less expensive homes.
However, the pricier properties (especially those along the Western Cape’s coast) saw a return to normal market conditions after a surge in people moving to the area.
As a result, the market is now balancing out.
Between 2019 and 2023, property sales in the Western Cape ranged between R100 000 and R20 million, increasing the provincial sales share from 23% to 27%. Property prices increased by 10% between August 2022 and August 2023.
It appears that homebuyers prefer the Western Cape, as the province leads with 45% of sales activity across 170 towns, followed by KwaZulu Natal with 12% and Gauteng with just 3%.
The report mainly focused on three areas:
Stellenbosch
Known for its wine route, architectural heritage and cultures, Stellenbosch is known for its appeal as a desirable residential location.
Between 2011 and December 2023, Stellenbosch’s population increased by 26%. As per the RMM report, about 103 adults move to the region per month, equating to 41 families. The average household income has also increased by 31% in the town itself, with a higher buyer market of people aged between 50 and 65 and older.
Somerset West
Here, golfing, hiking, fine dining, a significant German population and educational excellence take centre stage in Somerset West, located between the Helderberg Mountains, Cape Winelands and False Bay.
The population increased by 10% between 2011 and December 2023. Approximately 29 adults move to the town each month, equating to 12 families. The average household income increased by 8% since November 2021, as did the higher buyer market of people aged between 50 and 65 and older.
Macassar
Macassar, forming part of the greater Somerset West area, is quite popular among wind and kite surfers. It’s history is tied closely to Strand, and it is home to the kramat (shrine) of Sheik Yussaf of Bantam, one of the South African Muslim community’s holiest places.
The population increased by 70% between 2011 and December 2023. About 100 adults move to this area per month, equating to 40 families. While Macassar’s household income increased by 45% since November 2021, more buyers are aged below 35. The area also saw an increase in buyers aged between 36 and 49 years.
The report attributes the older buyer groups in Stellenbosch and Somerset West to quality medical, estate living and mature living suitability, while the younger buyer profile in Macassar is interested in quality education, estate living, and family amenities.
In addition, the RMM report noted several national and international trends that influence these areas, namely:
- Sustained demand for sectional title properties, particularly those in estates. The report found that buyers prioritise price and security over property size
- Mixed-use developments: Walkable neighbourhoods where residents can live, work and play. This includes developments that combine residential, commercial, retail, and leisure within a single space
- Technology integration, including smart home systems, high-speed internet
connectivity, and advanced security features - Wellness amenities: It is expected that more properties offering wellness-focused amenities such as bespoke fitness centres, yoga studios, spas, and outdoor recreation areas will pop up, as well as the introduction of artificial intelligence to provide proactive care measures within estates
- Sustainability: It is expected that back-up power and solar-ready units will be viewed as the norm, as well as sustainable designs, energy-efficient systems and water-saving measures
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These Cape Town suburbs charge an average of R120 000 for rent
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