Stats SA’s private sector building report for September 2022 shows a boom in demand for residential building developments in the western Cape while demand in Gauteng is declining – highlighting the semigration trend of South Africans moving from busy industrial cities to quieter coastal towns.
In contrast, Stats SA shows that building plans passed for residential developments in Gauteng have decreased by 13.5% year-on-year, from a value of R16.2 billion in 2021 to R14.1 billion in 2022. Plans completed in the province have also declined by 6.1% from a value of R9.4 billion in 2021 to R8.8 billion in 2022.
Throughout 2022, several property agencies have signalled the spike in demand for homes along the South African coastline. “The Western Cape was the primary beneficiary of the post-hard lockdown shifts in buying patterns, with its share of home sales rising from a low of almost 21% in mid-2020 to almost 27% by late 2021,” he added.