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Johannesburg’s Property Market Rebounds as Semigrants Return
Johannesburg residents have relocated to the Western Cape, drawn by its scenic beauty and relaxed lifestyle. However, rising living costs, economic realities, and infrastructure issues are prompting many to rethink their move, fueling a resurgence in Joburg’s property market.
High Costs in the Western Cape Drive Residents Back
Findings from PayProp’s 2024 Annual Market Report reveal that property prices and rental costs in the Western Cape far exceed those in other provinces. While Cape Town has seen a 25% price increase over the past five years, Johannesburg’s growth has been more moderate at 12%, making it a more affordable and attractive option.
Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty, confirmed a surge in inquiries from individuals looking to return to Johannesburg. “More people are reconsidering their move, especially as Cape Town’s cost of living climbs,” he said.
Johannesburg’s Economy Strengthens Property Demand
A key reason for this shift is the return to in-office work, forcing many professionals back to South Africa’s business capital. Johannesburg contributes 16% of the country’s GDP and over 40% of its business services, solidifying its position as an economic powerhouse.
“With Sandton at the heart of the financial sector, career-driven individuals are finding that being in Johannesburg provides better opportunities for growth and networking,” Odendaal added.
Property Prices in Joburg Set to Rise
As demand increases, property prices in Johannesburg are expected to climb. Lightstone’s 2024 property report shows Sandton’s real estate market is already on an upward trajectory, ranking among the Top 10 Value property bands.
“The market is shifting quickly,” Odendaal explained. “With more people returning, competition for prime properties is heating up.”
Cape Town’s Infrastructure Woes Add to the Exodus
Beyond soaring property prices, Cape Town’s infrastructure challenges—including water shortages and worsening traffic congestion—are adding to residents’ frustrations. Commuters in the city lose up to 55 hours per year in traffic, further diminishing the Western Cape’s appeal.
While Cape Town remains attractive for its governance and lifestyle, many are struggling to justify the high costs. For those seeking affordable housing and economic stability, Johannesburg is once again becoming the go-to choice for homebuyers and investors.
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MSN
