Goodbye Cape Town – reverse semigration hits South Africa

Although Cape Town has dominated South Africa’s property market for years, a new reverse-semigration trend has hit the country in the last few years.

According to Wise Move’s 2025 Migration Report, people moving from Johannesburg and Pretoria to the Western Cape accounted for 48% of all inter-provincial moves.

However, the reverse was also noticeable. Moves from Cape Town to Johannesburg and Pretoria were the next most common inter-provincial moves.

The Seeff Property Group explained that much of the move back to Gauteng is driven by the affordability of property and economic opportunities.

At an average of R1.3 million, Gauteng’s property prices are about 27% lower than Cape Town’s average of R1.8 million. Similarly, rentals are about 20% lower, averaging R9,201 in Gauteng compared to R11,285 in Cape Town.

“The rental market is often where people returning or moving to the metros turn to before they even start thinking about purchasing property,” Seeff explained.

Gauteng, as the biggest economy in the country, is therefore also the largest rental market, with about 37.8% of households renting according to TPN.

Data from PayProp also revealed that rents have remained affordable despite the high demand, increasing by only around 2.9% on average over the last year.

However, many areas have seen 3% – 5% increases due to higher demand and a lack of stock. Seeff’s rental agents pointed out that this dynamic creates an excellent opportunity for property investors.

According to Numbeo.com, Johannesburg and Pretoria have slightly lower living costs and offer a wider range of more affordable rentals, including more entry-level housing.

Investors flock to these areas

Christa Roos, licensee for Seeff Helderkruin, said they have observed an influx of people heading to areas in the valley, such as Kloofendal, Helderkruin, Wilro Park and Roodekrans.

This is largely due to the good value for money offered in the area, with rental properties in the R15,000-plus market moving very quickly.

Joburg South and Alberton are very popular due to affordability, especially in the R4,500 to R8,000 per month range, Seeff’s Ruth Sturgess explained.

For family houses in Kibler Park, there are opportunities for investors to earn steady rental incomes from R6,000 to R12,500 per month.

According to Carin Buitendach from Seeff Boksburg and Benoni, these areas are very popular for their affordability in the R5,000 to R7,000 per month range.

Top-end rentals reach R15,000 for a freestanding house rented out by Seeff. Rents grew by about 5% over the last year, and investors can earn steady monthly rentals of R6,000 to R6,500.

Randburg also offers a broad middle-class appeal, and a great choice of affordable rentals in the R7,000 to R14,000 per month range. Larger homes in the area tend to rent out in the R25,000 to R35,000-plus range.

The Joburg North West area offers affordability for those who commute to work in Randburg and Sandton. Rochelle Holland, Seeff’s sales and rentals manager for the area, said people often rent before they buy in the area.

There is also an opportunity for rental investors in the R500,000 to R950,000 price brackets, as these are very popular rentals and can earn a steady income of R7,000 to R12,000 monthly.

The Eagle Canyon Golf Estate is also very popular for rentals. Prices are mainly in the R20,000 – R30,000 range, with high-end homes renting out for up to R60,000 – R70,000.

The northern suburbs of Sandton, Bryanston, and Fourways are also hugely popular. Demand is driven by status and the desire to be close to business areas.

The R10,000 – R20,000 bracket is the most popular, especially for sectional titles. Luxury homes range up to R45,000 – R60,000, and super homes are well above this.

In the Pretoria metro, areas such as Centurion are popular for their proximity to the metro and Midrand, explained Tiaan Pretorius, manager for Seeff Centurion.

In these areas, correctly priced rentals can go within hours or days. Prices start from R5,000, with the highest demand in the R14,000 to R25,000 range. Rental escalations have been in line with the CPI, at between 3% and 5%.

The Pretoria East rental market has been particularly busy in 2025, with Seeff recording some of its best months.

The R12,000 to R20,000 bracket has been most active. PG van der Linde, rentals manager for Seeff Pretoria East, said an added boost has come from people who are still hesitant to buy and choosing to rent in the meantime.

Issued on Daily Investor by Kirsten Minnaar | https://dailyinvestor.com/property/93606/goodbye-cape-town-reverse-semigration-hits-south-africa/