Balwin Properties recently released its financial results for the six months ending 31 August, 2024, revealing a significant shift in semigration trends, Cape {town} Etc reports.
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Despite economic challenges, demand for properties in the Western Cape remains robust, and the company expects growth in the region to continue in the coming months.
The company reported that ongoing construction projects have increased in value to R6.5 billion as development costs rise to support heightened activity planned for the second half of the financial year.
Balwin’s development pipeline includes around 42 000 apartments spread across Johannesburg, Tshwane, the Western Cape, and KwaZulu-Natal, with a projected timeline of 15 years to complete these projects.
One of the most noteworthy trends highlighted by Balwin is Gauteng’s resurgence as the top revenue-generating region, contributing 49% to the group’s income. This marked a reversal of the recent semigration pattern, where many residents were relocating to coastal provinces like the Western Cape, which now accounts for 46% of Balwin’s revenue.
Balwin’s observations align with insights from Lightstone Property and Stats SA, which also track regional movement patterns. A 2024 Lightstone report revealed that one in four homeowners who sell their property choose to relocate to a different province.
Of the roughly 50 000 homeowners participating in this sell-to-buy market in recent years, Gauteng and the Western Cape have emerged as the primary hubs, accounting for 48% and 23% of these transactions, respectively.
However, migration data shows that while fewer Gauteng residents remain within the province, other regions, including the Eastern Cape, Free State, KwaZulu-Natal, Mpumalanga, and Limpopo, are experiencing even steeper declines in resident retention, with decreases ranging from 9% to 15%. Gauteng’s relative affordability remains a major draw for both locals and international buyers.
According to Stats SA’s Census data, Gauteng is South Africa’s most populated province, with 15.8 million residents, including 1.1 million foreign-born individuals—a much higher number than the 368 000 foreigners living in the Western Cape.
Johannesburg and Pretoria continue to attract people with their economic opportunities and affordability. Johannesburg, in particular, stands out as the most affordable major metro in South Africa, with an average property price of R1.2 million, lower than the national average of R1.3 million. Nearly 77% of transactions in Johannesburg this year were for properties priced under R1.5 million, with nearly half of those sales below R700 000.
Gauteng’s appeal extends to South Africans returning from abroad, as the region offers economic prospects and lower living costs. However, Balwin emphasised that the Western Cape continues to experience strong demand. The company acquired land for two new developments in the province, following the sell-out success of Fynbos and De Aan-Zicht.
Lightstone Property’s report further underscores the Western Cape’s rising appeal, showing that 14 of the top 15 towns experiencing a net influx of new homeowners are located in the province.
While Gauteng remains attractive for its affordability and career opportunities, the Western Cape is becoming increasingly competitive, drawing interest for its scenic beauty and growing appeal among foreign investors.
This dynamic highlights the evolving landscape of South Africa’s property market, where Gauteng and the Western Cape remain the primary players, each offering distinct advantages that appeal to different segments of the population.
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