Goodbye Cape Town – an important group of South Africans are leaving in droves
A recent report noted a reverse semigration trend of skilled young professionals leaving Cape Town for Johannesburg.
These young professionals are leaving due to affordability pressures and career opportunities, which are major determinants in where people choose to live.
For years, Cape Town has been a top semigration destination, attracting South Africans with its lifestyle appeal and global reputation.
However, the cost of living in the city has become increasingly difficult to justify for many younger workers trying to build careers and financial stability.
A combination of limited housing stock, heightened demand following the COVID-era semigration wave, and an influx of foreign buyers with stronger currencies has driven property prices up.
As a result, young South Africans are opting out. According to the Wise Move 2025 Migration Report, about 25% of people who left Cape Town last year relocated to Johannesburg, primarily in search of better job prospects and improved financial outcomes.
This shift has been labelled another reverse semigration trend, where people are returning to the country’s traditional economic hub.
“Surveys by recruiters such as OfferZen suggest that young South African tech professionals in Johannesburg earn roughly 6% more than their counterparts in Cape Town,” said Mark Stevens, majority shareholder in the upcoming Saxon Square development in Rosebank.
He added that there are similar trends in finance and corporate sectors, which reflect the city’s role as the country’s primary economic hub.
For many young professionals, the ability to earn slightly more while spending significantly less is proving decisive. Stevens noted that areas like Rosebank are playing a central role in attracting returnees.
Rosebank has become increasingly appealing to young professionals relocating from Cape Town because it offers a similar lifestyle dynamic.
This includes mixed-use precincts, walkable streets and a strong café and restaurant culture.
“At the same time, its position at the heart of the city’s corporate ecosystem allows residents to enjoy a vibrant urban lifestyle while remaining close to many of the country’s top employers,” Stevens added.
What these young professionals are looking for
While many relocating professionals are looking for neighbourhoods that resemble Cape Town hotspots like Sea Point, they are unwilling—or unable—to match the price tags.
The cost per square metre for a studio apartment on the Atlantic Seaboard can reach as high as R73,000, nearly double that of comparable developments in Johannesburg.
“The barrier to entry for first-time homebuyers in Cape Town remains extremely high, forcing many relatively well-paid professionals to spend the bulk of their income on rent rather than getting their foot on the property ladder,” Stevens said.
“Our pricing model for Saxon Square is designed to respond to the growing demand from both these ‘reverse semigrants’ and local buyers for luxury lifestyle living that is still financially attainable.”
Saxon Square recorded more than R70 million in sales within its first ten weeks, underlining the appetite for developments that combine affordability with lifestyle appeal.
Stevens also pointed to growing interest not only from owner-occupiers but also from investors, particularly as Johannesburg’s short-term rental market expands.
“What buyers are really looking for is a sense of community, convenience and access to opportunity in one place,” he says.
This is reflected in the features that are increasingly shaping new developments aimed at younger buyers.
Proximity to transport hubs and major shopping centres is essential, as is security, with biometric access control becoming standard.
Many developments now also offer 24-hour concierge services to manage deliveries and visitors, echoing high-end international living standards.
Equally important are shared, community-focused spaces, including co-working areas for remote professionals, communal braai facilities, lounges and entertainment areas.
Wellness amenities such as yoga studios, meditation gardens and rooftop green spaces are also becoming key differentiators.
While Cape Town continues to offer an enviable lifestyle, Johannesburg is increasingly winning over young professionals with better value for money.
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