The influx of South Africans moving from Johannesburg to the Western Cape has subsided, according to property experts, and reverse semigration has taken effect as more people are forced to return to the office.
According to property group Fine and Country, more work opportunities and the high cost of living in the Western Cape have also led to a number of people moving back to the City of Gold.
“While remote work surged during the pandemic, many companies are now moving towards hybrid or in-office work models,” according to the property group.
John Herbst, CEO of Fine and Country said that South African career professionals have realised that their career progression is still centred in the city.
“For many professionals, being close to head offices and leadership teams is essential for career growth. Johannesburg continues to be the hub for corporate decision-making,” Herbst told Business Tech.
The property expert said that Sandton, in particular, remained a key commercial hub as it hosts the Johannesburg Stock Exchange (JSE) and many of Africa’s largest corporations.
“The city has an undeniable economic momentum, and people are recognising that the most lucrative business opportunities remain here,” Herbst added.
“We are seeing renewed interest from professionals and business owners who are recalibrating their long-term strategies.”
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Office space gets R1 billion
According to data released in January this year, 2024 has seen over R1 billion worth of office space being sold in Johannesburg.
Rory O’Hagan, a principal of Chas Everitt Hyde Park and Sandton said that “2024 was certainly a delicious year for Johannesburg” and noted that the total value of sales for the year was over R1.24 billion for residential properties.
He added that almost 500 properties were sold in Bedfordview, Midrand and the northern suburbs of Johannesburg.
The property expert said that the market has gathered speed since the formation of the Government of National Unity (GNU) and the announcement of two interest rate cuts in September and November 2024.
“Prospective buyers have noted the steady progress being made with fixing Johannesburg’s infrastructure, and November was a record month for us. We were also extremely busy all the way through December, which is usually a quiet month in Johannesburg,” O’Hagan said.
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