Small 283-year-old town in South Africa becoming a new semigration hotspot
South Africans are increasingly looking to buy lifestyle farms near Cape Town, as rising housing prices and municipal costs in the city have pushed buyers to seek alternatives when buying second homes.
Seeff Country principal Jaco Badenhorst said that farms near Cape Town are becoming increasingly sought after, especially for urban buyers.
South Africans living in urban areas such as Gauteng who are looking to move to the coast have become a notable trend in South Africa, often referred to as “semigration”.
Cape Town is a hotspot for semigration, with many South Africans attracted to the area’s lifestyle and reliable service delivery.
Badenhorst said this trend is beginning to shift, with urban homeowners increasingly looking to buy farms as second homes or holiday retreats.
“The ability to invest in a lifestyle farm within about three hours’ drive from Cape Town is particularly attractive for urban buyers looking for a weekend retreat or extended stays,” Badenhorst said.
He said several areas are gaining the attention of prospective buyers, including Klein Karoo, Montagu, and Swellendam.
Notably, Swellendam, founded in 1743, is the third oldest town in the country, and has historically fought to maintain and conserve its heritage.
This including pushing back against modernity—such as traffic lights—as well as uncharacteristic developments that could impede or disrupt its heritgate conservation efforts.
For buyers looking in these areas, one of the biggest considerations is water availability. “Access to a secure water source remains one of the most important purchasing considerations,” Badenhorst said.
Cape Town and the surrounding areas in the Western Cape have struggled with water availability in the past, particularly between 2015 and 2018.
During this time, drought conditions led to water restrictions, with many fearing “day zero,” where Cape Town would run out of water.
The drought had a devastating effect on farms in the Western Cape, leading to billions in lost agricultural revenue.
For property buyers, water availability is important for “household use, small-scale farming, orchards, livestock, or simply maintaining a self-sufficient lifestyle,” Badenhorst said.
“Buyers are also prioritising properties with good road access, allowing for convenient travel without the challenges associated with remote or difficult-to-reach farms.”
Moving away from the city
Badenhorst said that homebuyers are increasingly opting to purchase farm properties instead of traditional coastal homes.
“Many of these purchasers are choosing lifestyle farms instead of traditional holiday homes at the coast,” he said.
“Rising coastal property prices, increasing municipal costs, and a desire for greater self-sufficiency have encouraged buyers to consider rural alternatives.”
Cape Town’s property market has seen prices surge at a quicker rate than any other area in South Africa, driven by both local and international demand.
Stats SA’s residential property price index found that homes in the Western Cape had seen the highest year-on-year price increase of any province in April, at 11.2%.
The index also found that residential prices in Cape Town increased by 11% year-on-year in April, the largest increase of any metropolitan area.
The second-highest average increase among metros was in Nelson Mandela Bay, where residential property prices rose by 6.4%.
Badenhorst said that prospective homeowners can get many amenities when buying a farm for a price similar to that of Cape Town’s coastal properties.
“Lifestyle farms offer owners the opportunity to enjoy open spaces, privacy, outdoor recreation, and sustainable living while retaining the flexibility to generate supplementary income through small-scale agricultural activities,” he said.
While buying a farm may seem appealing, Badenhorst warned that there are several considerations unique to this type of property.
“Financing agricultural land differs significantly from financing a conventional residential property or second home,” he said.
“Most commercial banks view agricultural properties as specialised assets and therefore apply different lending criteria. “
He said loan repayment periods are typically shorter than residential properties – between 10 and 15 years – and deposits can be up to 50% of the purchase price.
“These requirements mean that purchasers need to plan their financing carefully and engage with lenders early in the buying process,” Badenhorst said.
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