Goodbye Western Cape – the new emerging semigration hotspot

This was highlighted in the latest Absa Homeowner Sentiment Index (HSI) for the first quarter of 2025. 

The Absa Homeowner Sentiment Index (HSI) measures consumer confidence in South Africa’s property market.

It also unpacks more nuanced insights by measuring various aspects of consumers’ confidence levels, referred to as subindices in this report.

According to the HSI, the Western Cape still has positive net migration, but this has slowed down compared to the previous three quarters.

In contrast, it added that the Eastern Cape is also seeing continued net inward migration, whereas KwaZulu-Natal saw an increase in the outward migration.

Property experts have noted that the declining migration to the Western Cape, specifically the City of Cape Town, is due to price pressures for property and congestion. 

This is pushing prospective buyers to look for homes outside city centres or for cheaper alternatives similar to the Western Cape lifestyle. 

Giovanni Gaggia, CEO of Real Estate Services South Africa, told BusinessTech that the Eastern Cape is fast becoming a compelling option. 

“Affordability is key. Buyers are increasingly prioritising value for money, and the Eastern Cape offers larger properties at lower prices than major metros,” he said. 

“With hybrid and remote work becoming the norm, professionals are relocating to smaller towns where the quality of life is higher.”

Desiree Ferreira, licensee for Seeff St Francis Bay, noted that the coastal town remains one of the most desirable destinations in the province. 

“Several key trends are fueling the sustained interest in St Francis Bay. People are looking for a better quality of life, lower crime rates, and access to outdoor activities. 

“It’s a long-term investment in resilience and lower living costs. We’ve also seen consistent appreciation of property values in the area, often outperforming national averages,” she said.

Offers value for money 

Alan Phillips, regional manager for Seeff in the Eastern Cape, agreed that the province offers a strong alternative to the now costly Western Cape.  “Traffic is not a major issue here, and the region is rich in history and culture.”

It’s the birthplace of great South African leaders like Nelson Mandela, Thabo Mbeki, and Oliver Tambo, as well as sports legends such as Siya Kolisi, Makazole Mapimpi, and Makhaya Ntini.

The Eastern Cape is also benefiting from an increase in younger buyers. Around 68% of buyers are under 50, with nearly 28% under the age of 35.

This suggests that the region appeals to a new generation of professionals and families looking for long-term prospects. 

“There is a wide variety of stock available, including new developments that suit younger buyers looking to invest,” said Phillips.

Gaggia noted that the region’s appeal is also driven by lifestyle and family considerations. “We’ve seen a rise in young families and semigrants from Gauteng and KwaZulu-Natal choosing the Eastern Cape for schooling, safety, and lifestyle,” he said. 

“There’s also steady interest from public sector professionals, particularly around education and healthcare hubs.”

Adding to its growing appeal is a US$1.5 billion World Bank loan secured by the South African government to upgrade infrastructure, including in the Eastern Cape. 

The semigration hotspots

Gaggia explained that these upgrades will improve transport, energy, and logistics systems, directly benefiting the property market. 

“This is a vote of confidence from global investors in the province’s growth trajectory. For buyers and investors, it means improved quality of life and a property market primed for sustainable uplift,” he said.

Interest is spread across both coastal and inland areas. According to Gaggia, strong residential demand is being seen in Gqeberha (Port Elizabeth), East London, Jeffreys Bay, and inland nodes like Stutterheim and Queenstown. 

Coastal towns such as Kenton-on-Sea, Hogsback, and St Francis Bay are especially popular among remote workers and retirees looking for tranquillity and good value.

Buyers typically spend between R1.2 million and R2.5 million on freestanding homes in Gqeberha and East London, while beachfront or lifestyle properties in Jeffreys Bay can range from R1.8 million to R3.5 million. 

Inland towns offer even greater affordability, with average prices between R800,000 and R1.5 million. Richard Gray, CEO of Harcourts South Africa, said these prices reflect significant value when compared to other coastal provinces. 

There’s growing interest in second-home investments and lifestyle relocations. Coastal towns like St Francis Bay are popular for dual-use homes, lifestyle today, investment for tomorrow. 

“Areas like Gqeberha and East London offer robust infrastructure, schooling, and healthcare networks,” he said.

Gray noted the average sales prices as follows: St Francis Bay at around R3.5 million, East London at R1.4 million, and Gqeberha at R1.25 million.

Issued on BusinessTech by Malcolm Libera | https://businesstech.co.za/news/property/829760/goodbye-western-cape-the-new-emerging-semigration-hotspot/