The highest growth rate was seen in cities and non-urban areas, the areas outside of existing town boundaries, which happens as the towns crawl outwards.
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South Africa saw an increase of just over 150 000 new residential properties over the last five years in the over R500 000 property segment.
This is a 4.7% increase which brought properties in this segment to just under 3.3 million units.
Lightstone data excluded unclassified, Township and Affordable areas as well as sales below R500 000 from consideration because of the prevalence of subsidised transfers, transactions not aligned with market value and a backlog in property registrations, within this category.
Gauteng and the Western Cape accounted for just under 73% of the additional volumes.
The provider of comprehensive data, analytics and systems to various industries, including the motor and property markets, says Gauteng and the Western Cape accounted for just under 73% of the additional volumes.
“The country’s top five municipal districts included three from the Western Cape, although KwaZulu-Natal’s iLembe district - which encompasses Ballito and Salt Rock - ranked first.
"Limpopo’s Capricorn district, which includes Polokwane, placed third. Despite iLembe leading the rankings, KwaZulu-Natal’s overall growth rate remained relatively modest at 2.9%, while Limpopo’s growth only slightly outperformed the national average,” says Hayley Ivins-Downes, Lightstone’s managing executive of Real Estate.
It says the Western Cape recorded the highest growth rate as a percentage of stock in the country at 6.2%, well above the national average of 4.7%. Gauteng’s growth rate of 4.9% was slightly ahead of the national average.
Mpumalanga and the North West provinces also experienced above average growth, between 5.5% and 6%, but the other five provinces namely KwaZulu-Natal, Eastern Cape, Northern Cape, Free State and Limpopo - were below the national average.
“The country’s top five municipal districts included three from the Western Cape, although KwaZulu-Natal’s iLembe district, which encompasses Ballito and Salt Rock, ranked first. Limpopo’s Capricorn district, which includes Polokwane, placed third.
"Despite iLembe leading the rankings, KwaZulu-Natal’s overall growth rate remained relatively modest at 2.9%, while Limpopo’s growth only slightly outperformed the national average,” says Hayley Ivins-Downes, Lightstone’s managing executive of Real Estate.
Although most of the stock volumes were added in Mid-Value (46 000) and High Value (65 000) areas, the percentage growth was highest in Luxury (6.1%) and Super Luxury (5.8%).
The higher development activity levels in the premium price bands mirror churn activity is more in higher value properties in 2025.
Lightstone data released last week showed that mid to premium segments of South Africa's residential property market were the busiest last year, differing from the usual trends observed in a robust market.
South Africa has experienced a period where there has been reduced activity in the country’s lower price bands relative to the mid and higher bands, consistent with a market sensitive to macroeconomic stress.
The growth rate in the Mid Value areas (at 1.4 million the segment with the most properties) was the lowest, perhaps because the stock in that market was deemed by developers as sufficient, or because growth had been constrained by other factors, such as tough economic conditions.
If it were the latter, we could expect pressure on supply to grow as economic circumstances improve.
The highest growth rate was seen in cities and non-urban areas, the areas outside of existing town boundaries, which happens as the towns crawl outwards.
Interestingly the growth in small towns in terms of volumes and growth rate exceeded that of large towns, evidence that semigration continued as people opted for quieter lifestyles.
iLembe (KwaZulu-Natal), Cape Winelands (Western Cape), Capricorn (Limpopo) Eden and Western Coast (both Western Cape) recorded the highest growth rates.
iLembe is home to many of KwaZulu-Natal’s premium towns, including Ballito (seeing 17% growth) and Salt Rock (20% growth), and residential developments such as Zimbali Estate, Simbithi Eco Estate and Dunkirk Estate, as well KwaDukuza, previously known as Stanger.
While some registered properties in the new estates would have been vacant land, the growth rate in the district was nevertheless impressive.
In part, Salt Rock and Ballito benefited from the northward push up the coast from Durban, with their proximity to King Shaka International Airport an obvious advantage.
Cape Winelands included Franschhoek, Paarl, Robertson and Montagu across its south, and stretches up to the Koue Bokkeveld Mountain catchment and Tankwa Karoo National Park in the north.
Stellenbosch and surrounds, and Paarl and surrounds contributed most to the growth in the Winelands, while Worcester, Ceres and Montagu recorded minimal growth.
Franschhoek, Wellington and Robertson grew at around the national average.
Bustling Polokwane, the capital of Capricorn, grew by 9%, with the average value of new properties slightly lower than that of the existing properties. One of five municipal districts in Limpopo, Capricorn, is home to more than 1.3 million residents and is named after the Tropic of Capricorn, which runs through the district.
Growth came from a mix of public investment (infrastructure and events), private sector activity (services, retail, real estate), and its strategic geographic role within Limpopo and southern Africa more broadly.
“George, Mossel Bay and the surrounding areas are attracting new residential development and investment due to their combination of an appealing coastal lifestyle, strong infrastructure and relative affordability.
This trend reflects a broader national pattern of semigration toward well-serviced smaller towns”, says Ivins-Downes
This has turned them into vibrant residential and investment markets in the Western Cape. The area around Mossel Bay was, proportionately, the big winner in the Eden District, with 675 (46%) new properties added.
George (11%), Keurboomstrand (9%) near Plettenberg Bay, Mossel Bay and nearby Groot Brakrivier (6% each) all grew above the national average, while Knysna, Herolds Bay (outside George) and Sedgefield grew just under the national average.
In volume terms, though, George and Mossel Bay and surrounds were well ahead of other towns in Eden at approximately 2 200 new properties each.
The Western Coast’s growth was indicative of the growing popularity of small towns and villages.
Laaiplek led the way with 31% growth (although from a low base), and sits right at the intersection of affordability, coastal lifestyle, accessibility, and growth potential. Developers see it as “what Langebaan used to be” before prices escalated. Laaiplek is on the west side of Velddrif, and its name is derived from its function, “a place where one can offload the catch of the day on the pier”.
As it happened, though, Langebaan’s growth (15%) continued, with 1 260 properties added. Darling, Yzerfontein, Piketberg and Velddrif all recorded growth rates above the national average.
Reflecting on the past 25 years since the inception of RB Property Group in 2000, the company said the need for affordable housing continues to be one of the most pressing issues in South Africa.
It said while over 5 million Black South Africans were expected to own homes by last year, more than 2 million families are still waiting for access to affordable housing. “As part of our vision for the next 30 years, we aim to build integrated, mixed-use communities that provide not just homes, but employment, education, and essential services.”
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