Managing growth for an increasing population

The Western Cape has attracted large numbers of residents from other provinces over the past few years, contributing to it becoming one of the fastest-growing regions in South Africa.

“This surge has a significant impact on urban planning in the Mother City and surrounding areas including the Boland and Overberg regions,” says Annien Borg, regional head for the Boland and Overberg regions at Pam Golding Properties.

During Q1 2024, the Western Cape comprised 29% of ooba Home Loan semigration applications – an increase of 14% since the start of 2020. The latest figures from property statistics firm, Lightstone, also show a marked increase in semigration to the Western Cape over the past six years, from 2018 – with 2022 reflecting the highest figures. The Lightstone statistics only reflect semigrants who actually purchased a home in the Western Cape, and excludes those who relocated to this region but are renting.

For example, in 2022, Somerset West attracted 498 semigrants, Hermanus 394, Durbanville 382, Stellenbosch 284 and Paarl 181. Last year’s (2023) statistics were only slightly down – 452 for Somerset West, 359 Durbanville, 287 Hermanus, 276 Stellenbosch, 287 Hermanus and 176 in Paarl.

“Making provision for such large numbers of new residents requires skilful planning on the part of local and provincial government. Boland and Overberg municipalities are steadily implementing new projects to improve infrastructure and ensure quality of life,” says Borg.

On Cape Town’s northern fringes with the Boland, new residential developments are springing up in Durbanville, an area which is experiencing rapid growth. Recreational facilities in the area include the Botterblom Nature Reserve, gyms and golf courses, and shopping amenities include Cape Gate, Pinehurst Centre, Cobble Walk and Graanendal. New education facilities include the opening of Curro Durbanville’s new high school campus in 2022, while Stadio Holdings plans to develop a comprehensive university campus nearby.

Significant infrastructure projects in the Boland and Overberg regions include:

A R3 billion upgrade project planned for the N1 from Old Oak to Koelenhof interchange near Stellenbosch by the South African Roads Agency (Sanral). According to a Sanral media statement, a detailed design has been completed for the N1 improvements for the 13 km between the interchanges.

This project entails upgrading from four lanes to a six-to-eight-lane divided highway, five major interchange upgrades and pedestrian safety infrastructure, including street lighting over the entire length. The plan for the R300 north phase is to extend the busy arterial as a six-lane freeway up to the urban edge north of Durbanville.

The Cape Winelands Airport is expected to start offering local and international flights in 2027, following a R7 billion redevelopment and expansion project. Previously known as the Fisantekraal Airfield, it belonged to the South African Air Force, was sold to private owners in 1993 and is now owned and operated by RSA.Aero. Redevelopment plans include a passenger terminal that can accommodate 5.2 million passengers a year, cargo terminals, aircraft hangars, a hotel, a heliport, warehousing and logistics facilities, as well as a commercial real estate development. Borg anticipates that Cape Winelands Airport will be a driver of regional economic development and local community inclusion.

A R394 million waste water treatment works in Stellenbosch – completed in 2021, is the single largest capital expenditure item and bulk infrastructure project in the history of Stellenbosch. At the opening, Anton Bredell, the minister of Local Government, Environmental Affairs and Development Planning in the Western Cape, said: “The rapid expansion of Stellenbosch was placing pressure on the old facility and hampering further development and economic growth within the urban edge of the town. The new facility has greatly improved the town’s wastewater treatment capacity and the incorporation of innovative technology will make future upgrades easy and cost effective.”

Also in Stellenbosch, the municipality is in the planning stages of transforming the Dennesig precinct into a series of ‘living streets’ as part of the town’s comprehensive integrated transport plan. The project prioritises pedestrians and cyclists but also makes allowance for some motor vehicle access and parking. The main transport objective is to reduce vehicular demand especially for students and residents, to link the Dennesig neighbourhood with the university campus and the CBD.

In Hermanus, the Department of Public Works and Infrastructure has completed significant upgrades to Hermanus Harbour as part of its Small Harbours Repairs and Maintenance Programme. This project involved slipway repairs, shore crane replacements and the installation of a CCTV camera network. In addition, a new multi-purpose centre was opened to support local traders and boost economic development.

“With ongoing investments in infrastructure, education, and commercial projects, the Western Cape’s Boland and Overberg areas are well-positioned to accommodate the region’s expanding population, offering residents and home buyers improved amenities and enhanced quality of life,” says Borg.

She says that homes in Boland and Overberg towns are priced to suit buyers in all categories.

“In Stellenbosch, on average apartments sell between R2 million and R4.8 million, however, The Ilex studios in Newinbosch have just gone to market priced from R990 000. In Somerset West three-bedroom homes are priced from R3 million to R12 million, while in Hermanus prices for three-bedroom homes range from R3.5 million to R5 million. Here properties currently on the market range from a three-bedroom home on a 1667 sqm plot priced at R25.995 million – situated in a prime elevated location in Chanteclair with the most amazing views over the entire area – to a one-bedroom apartment in Mariners Village in Westcliff. Most in demand are properties across the area in the R3.5 million to R5 million price bracket which would typically be a three or four- bedroom family home on plot ranging from 700 to 495 sqm.

“Lifestyle and security estates are in high demand with semigraters.  In Arabella prices start at just above R7 million for a three-bedroom home set on an erf of 598 sqm.  Hemel en Aarde prices start at R3.9 million for a three-bedroom home up to R7.9 million for four bedrooms, while in the popular Fernkloof Estate in Hermanus prices start at R12.5 million for a three-bedroom, three-bathroom home on a 651 sqm plot.”

Borg says in Paarl three-bedroom homes come onto the market priced from R2.5 million to R7.5 million, and in sought after Val de Vie a three-bedroom home starts at R9 million.

“For Durbanville and surrounding areas, three-bedroom home prices start at R1.5 million in Bellville and Parow, and from around R4.5 million in the greater Durbanville area.”

For further information visit www.pamgolding.co.za or contact Annien Borg on 082 853 6418

Posted by The Know - Pam Golding Properties