[Image: Flickr]
For years, the Western Cape’s been strutting around like the golden child of South Africa’s property market, hoovering up Gautengers in search of sea views, craft gin, and “better governance.”
But the tide might finally be turning – Joburg, the prodigal city, is calling its people back.
Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty in Johannesburg and Randburg, said via Daily Investor that the once one-way traffic of semigration is starting to double back. And honestly? Thank goodness.
Sure, the Cape has been the darling of lifestyle chasers and Instagram dreamers. But Joburg’s real estate insiders are picking up on a new buzz, one that smells a lot like people realising that paying R50 for a coffee while dodging potholes and water restrictions might not be the dream they signed up for.
“In recent months, we’ve started fielding a growing number of enquiries from people looking to move back to Johannesburg, with particular interest in properties at the higher end of the market,” Odendaal said.
Turns out that paradise isn’t cheap. And with Cape Town’s property prices climbing like they’re training for a marathon and the cost of living punching people square in the wallet, a lot of former Joburgers are doing a double take.
And then there’s the irony: people who bailed on Joburg to escape crumbling infrastructure are still getting stuck in traffic and boiling their tap water.
“Cape Town’s infrastructure struggles, including water shortages and traffic congestion, have diminished the city’s appeal for many as those are some of the key reasons that they left Johannesburg in the first place,” Odendaal pointed out.
Lightstone’s stats back it up: Cape Town property prices have jumped 25% over five years, while Joburg has a more chilled 12%. PayProp’s 2024 Annual Market Report also doesn’t sugarcoat it, noting how the Western Cape’s rental prices are miles ahead of every other province.
“Not only are property prices in most areas still very accessible compared to the Cape, there is also a considerable amount of available stock on the market, so buyers have their choice of properties,” Odendaal added.
In other words, you get more house for your buck, and you’re not fighting 30 other people for a shoebox with mountain views.
So, why the backtrack? Odendaal chalks it up to a reality check.
“Many professionals who initially believed they could sustain Johannesburg-level salaries while working remotely from coastal or countryside locations are now facing the reality of corporate South Africa’s shift back to in-office work,” he said.
The whole “Zoom from a beach shack” fantasy is wearing thin. Let’s be honest: if you want to climb the corporate ladder, you’ve got to be where the action is.
“Networking, career advancement, and high-level business opportunities remain concentrated in Johannesburg, making a return to the city essential for many of those who want to remain competitive in their industries.”
Let’s not forget, though, that Johannesburg still pulls a big weight – nearly 16% of South Africa’s GDP and more than 40% of the business services output. And Sandton is still the beast: home to the JSE, mega corporations, and serious money.
“Unsurprisingly, Cape Town’s skyrocketing cost of living and property prices are pushing buyers to seek better value elsewhere,” said Odendaal.
It’s not rocket science – if your R10 million buys you a broom cupboard in the Cape but a mansion in Joburg, you know what to do.
“As more buyers shift their focus to Johannesburg’s relatively affordable yet high-value properties, demand is set to drive up prices, so, for investors, the time to act is now.”
And it’s not just talk. Lightstone’s 2024 data shows Bryanston and Morningside landing in the Top 10 Value property band. Meanwhile, Steyn City flexed hard, topping the list of suburbs with at least ten sales and average prices between R5 million and R10 million.
“With more professionals returning and competition for prime properties set to increase, Johannesburg’s real estate market presents a unique opportunity and buying now, before the inevitable rise in property inflation, ensures the best value and long-term gains,” said Odendaal.
“The window of opportunity is open – savvy investors should seize it before the market surges.”
Basically, Cape Town might have the mountain, but Joburg’s bringing the momentum.
[Source: Daily Investor]
