The Northern Cape is witnessing more buyers ‘moving in’ from Joburg, Pretoria, and KwaZulu-Natal looking to move to small towns, says the Seeff Group – in addition to local buyers.

Price growth in the province is now among the best in SA at 4.75%, outdone only by the Western Cape and Limpopo according to recent data from Lightstone. The average residential rental rate has reached R10 122 per month, up from 7.5% year-on-year according to PayProp data with 81% of tenants in good standing – the second-best market in the country in this regard.

Jaco Badenhorst, sales manager for Seeff Country, says the Northern Cape’s market is dynamic, especially in and around the key mining and agricultural towns. “That said, it remains the most affordable province in SA with its average price at just R935 806. Most sales fall between R400 000 and R1.5 million, with less than 2% above R2 million,” he says.

Aside from mining and agriculture the main economic drivers, renewable energy is now a key growth sector with solar projects such as Kenhardt and Redstone attracting major investment, creating jobs, stimulating local economies, and increasing demand for property in the region.

While a steady influx of people and contractors continues to boost strong demand for homes to buy and rent, the province is particularly appealing for buy-to-let investors who can purchase properties at a lower price and still achieve strong rental yields.

The Northern Cape is also unique in its high proportion of freehold properties which represents over 80% of the housing stock, while attracting younger buyers (the majority being under 50-years-old including first-time buyers) while in the Upper Karoo region, it is predominantly older buyers of 50-years-old plus.