South Africa added just over 150 000 new residential properties over the last five years in the over R500 000 property segment, a 4.7% increase which brought properties in this segment to just under 3.3 million units.
Lightstone excluded unclassified, Township and Affordable areas as well as sales below R500 000 from consideration because of the prevalence of subsidised transfers, transactions not aligned with market value and a backlog in property registrations, within this category.
Gauteng and the Western Cape accounted for just under 73% of the volumes added. The Western Cape’s new growth rate as a % of stock was the highest in the country at 6.2%, well above the national average of 4.7%, while Gauteng’s growth rate of 4.9% was just ahead of the national average.
Mpumalanga and North West also experienced good growth, between 5.5% and 6%, but the other five provinces namely KwaZulu-Natal, Eastern Cape, Northern Cape, Free State and Limpopo - were below the national average of 4.7%.
Three of the top five municipal districts were in the Western Cape, while KwaZulu-Natal’s iLembe (containing Ballito and Salt Rock) led the way and Limpopo’s Capricorn (containing Polokwane) was third. Despite iLembe being the leading district, KwaZulu-Natal’s overall growth rate lagged at 2.9% and Limpopo’s just nudged the national average.
Although most of the stock volumes were added in Mid-Value (46 000) and High Value (65 000) areas, the % growth was highest in Luxury (6.1%) and Super Luxury (5.8%). The higher development activity levels in the premium price bands mirror churn activity in More churn in higher value properties in 2025.
The growth rate in the Mid Value areas (at 1.4 million the segment with the most properties) was the lowest, perhaps because the stock in that market was deemed by developers as sufficient, or because growth had been constrained by other factors, such as tough economic conditions. If it were the latter, we could expect pressure on supply to grow as economic circumstances improve.
The highest growth rate was seen in cities and non-urban areas, the areas outside of existing town boundaries, which happens as the towns crawl outwards. Interestingly the growth in small towns in terms of volumes and growth rate exceeded that of large towns, evidence that semigration continued as people opted for quieter lifestyles.
Top 5 growth districts
Ilembe (KwaZulu-Natal), Cape Winelands (Western Cape), Capricorn (Limpopo) Eden and Western Coast (both Western Cape) recorded the highest growth rates.
iLembe is home to many of KwaZulu-Natal’s premium towns, including Ballito (seeing 17% growth) and Salt Rock (20% growth), and residential developments such as Zimbali Estate, Simbithi Eco Estate and Dunkirk Estate, as well KwaDukuza, previously known as Stanger.
While some registered properties in the new estates would have been vacant land, the growth rate in the district was nevertheless impressive. In part, Salt Rock and Ballito benefited from the northward push up the coast from Durban, with their proximity to King Shaka International Airport an obvious advantage.
Cape Winelands included Franschhoek, Paarl, Robertson and Montagu across its south, and stretches up to the Koue Bokkeveld Mountain catchment and Tankwa Karoo National Park in the north. Stellenbosch and surrounds, and Paarl and surrounds contributed most to the growth in the Winelands, while Worcester, Ceres and Montagu recorded minimal growth. Franschhoek, Wellington and Robertson grew at around the national average.
Bustling Polokwane, the capital of Capricorn, grew by 9%, with the average value of new properties slightly lower than that of the existing properties. One of five municipal districts in Limpopo, Capricorn, is home to more than 1.3 million residents and is named after the Tropic of Capricorn, which runs through the district.
Growth came from a mix of public investment (infrastructure and events), private sector activity (services, retail, real estate), and its strategic geographic role within Limpopo and southern Africa more broadly.
In Eden - George, Mossel Bay and surrounding areas - have attracted new homes and inward investment because they offer a desirable coastal lifestyle, strong infrastructure, good services, and affordability relative to larger cities, while tapping into a broader national trend of semigration toward attractive small towns
This has turned them into vibrant residential and investment markets in the Western Cape. The area around Mossel Bay was, proportionately, the big winner in the Eden District, with 675 (46%) new properties added. George (11%), Keurboomstrand (9%) near Plettenberg Bay, Mossel Bay and nearby Groot Brakrivier (6% each) all grew above the national average, while Knysna, Herolds Bay (outside George) and Sedgefield grew just under the national average.
In volume terms, though, George and Mossel Bay and surrounds were well ahead of other towns in Eden at approximately 2 200 new properties each.
The Western Coast’s growth was indicative of the growing popularity of small towns and villages.
Laaiplek led the way with 31% growth (although from a low base), and sits right at the intersection of affordability, coastal lifestyle, accessibility, and growth potential. Developers see it as “what Langebaan used to be” before prices escalated. Laaiplek is on the west side of Velddrif, and its name is “derived from its function, a place where one can offload the catch of the day on the pier”.
As it happened, though, Langebaan’s growth (15%) continued, with 1 260 properties added. Darling, Yzerfontein, Piketberg and Velddrif all recorded growth rates above the national average.
Residential growth per district
