The one thing driving reverse semigration back to Joburg

A growing return-to-office trend and Gauteng’s strong economic pull are beginning to shift South Africa’s semigration traffic away from the Western Cape.

In recent years, remote work has allowed professionals to leave city centres for coastal or country areas, with Cape Town emerging as a top choice for its lifestyle appeal. 

However, this is changing. Johannesburg is drawing people back, not only because companies are calling staff back to the office, but also because it remains South Africa’s biggest employer.

Samuel Seeff, chairman of Seeff Property Group, said Johannesburg’s role is too significant to overlook. 

“Johannesburg is not just another city. Despite its challenges, it is still the financial and economic heart of the country, and the wealthiest city on the continent,” he said. 

“It is home to the Johannesburg Stock Exchange, the largest in Africa, as well as the head offices of major banks, legal firms, and consultancies.”

He added that over 70% of South Africa’s businesses are based in Johannesburg. The city also continues to draw people from across the country searching for work, driving up demand for housing, particularly rentals. 

“Johannesburg will continue to grow. It has high urbanisation, strong demand for rentals, and areas that offer better rental returns than Cape Town,” said Seeff.

Despite issues like poor infrastructure, Seeff pointed out that Johannesburg still offers good amenities, such as schools, universities, green spaces, and favourable weather. 

According to Rory O’Hagan, managing principal of Chas Everitt in Sandton, Waterfall, and Bedfordview, the rise in rental demand is being felt most in Johannesburg’s commercial centres.

 “We’re seeing increased demand for office space and for rental apartments close to where people work,” he said. 

“Many companies want their employees back in the office full-time, pushing up demand in places like Sandton, Rosebank, Bryanston and Waterfall.”

O’Hagan noted that rental properties in these areas are being snapped up quickly. “We often don’t even get a chance to advertise units before they’re taken.”

Return to office boom

He highlighted that a two-bedroom apartment we recently listed in Dunkeld got 30 enquiries in the first week. Another in Riverclub sold in just a few days after 28 enquiries.

This marks a clear shift from the pandemic years, when remote work saw many people leave city centres. 

 O’Hagan said tenants and buyers are now returning to urban areas, especially Johannesburg, as they look for jobs and business opportunities. 

He also noted that this interest is not just local. Buyers from Europe, other African countries, and South Africa compete for the most attractive rental properties. 

“We’re seeing new developments sell out quickly, mainly to investors who see strong rental potential,” O’Hagan said.

According to global property firm JLL, more than 400,000 square metres of office space was taken up in South Africa in the first quarter of the year, and over half of it was in Johannesburg. 

The return of multinational companies and new infrastructure plans supported by public-private partnerships also contribute to the shift. 

“Johannesburg is getting more attention from international companies because of agreements like the African Continental Free Trade Area and events like the G20 Summit,” said O’Hagan. 

“That’s leading to more demand for offices and housing for staff working on South African projects.”

O’Hagan explained that gross residential yield in South Africa has gone from 9.96% in late 2024 to 10.36% now.

He pointed out that this is higher than the average rental yields in countries like the UK and US, which range between 6% and 7%, and higher than in Europe, where yields often sit between 4% and 5%.

O’Hagan also highlighted a decline in the number of new homes being built over the past two years. This could create a housing shortage and push rents even higher.

While the Western Cape still has its advantages, especially for those who can work remotely, Gauteng’s demand for office-based work makes cities like Johannesburg a vital destination. 

“People are moving back to where the jobs and opportunities are,” O’Hagan said.