For the past few years, the migration, or “semigration” of families and individuals to the Western Cape from throughout South Africa has been a hot topic. It’s been well documented that vast numbers of South Africans all left their homes to start anew in the Western Cape. This trend, however, has seemingly slowed down quite a bit.

While this has been happening, foreign investors have seemingly earmarked Cape Town, and the Western Cape as a worthwhile investment. Whether they’re are looking to buy a property in Mossel Bay, George, Knysna, Cape Town or Stellenbosch, Lighthouse Property found that foreign property investment in the Western Cape increased by 4% in January 2018.

“One of our most recent sales in the Western Cape was made to a US resident who plans on immigrating to South Africa. Our RE/MAX Living office sold the investor a R14.5 million, 5-bedroom property in Higgovale, Cape Town,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.

“Earlier this month, a German investor purchased a three bedroom, single-story home marketed at R5.4 million in Arabella Country Estate in the trendy holiday town of Hermanus. “In our experience, foreign buyers tend to be attracted to lifestyle estates in these areas, especially those where there are many other foreign owners. Arabella was developed by European investors which resulted in approximately 20% foreign ownership.

“The reason these kinds of lifestyle estates appeal to many foreigners is the quality of life that they offer. Most of the foreign buyers in this estate are generally ‘swallows’ who only stay for the summer holidays. But, eventually, some 10% of them seem to retire to Arabella,” Johann Larney, Broker/ Owner of the RE/MAX Town and Country office in Hermanus, explains.

This does pose a dilemma in terms of affordability for South Africans, but at the same token, how many South Africans could realistically afford those kind of properties? Only time will tell.