With rapid growth, Stellenbosch emerges as a hub for estate and precinct developments

Source: Supplied. Stefan Botha, director of Rainmaker Marketing.

Building on the insights from Rainmaker Marketing’s Western Cape Report released earlier this year, Stefan Botha, director of Rainmaker Marketing, shares his take on the steady rise of Stellenbosch and highlights the area’s evolving landscape, driven by significant population growth, a diverse buyer profile, and the increasing value placed on estate living:

Stellenbosch has witnessed a population surge since 2011, with a 35% increase in residents, rising from 55,886 to 75,395 in June 2024. Notably, most new residents, known as semigrators, are moving from inside the province, demonstrating the town's continued popularity.

This migration has not only boosted the local economy but has also increased demand for property, particularly in estate developments, as
buyers seek safe, community-orientated living settings.

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Stellenbosch's economic success is further demonstrated by the town's average monthly income, which increased by 31% between November 2021 and December 2023, showing the region's expanding wealth and appeal to higher-income customers.  

A healthy buyer split is seen across several age groupings, with 45% of property buyers aged 50 and over, 34% aged 36-49, and 21% aged 18-35.

This mix illustrates the appeal to pensioners looking for estate living and access to quality medical services, as well as younger families drawn to Stellenbosch for its lifestyle, educational institutions, and work prospects.

Stellenbosch property surge

Stellenbosch's stock increased by 18%, from 15,755 in 2021 to 18,578 in 2023. Of them, 68% are freehold homes (FH), with 32% being sectional title (ST) properties. Notably, 20% of these residences are in estates, indicating a growing need for safe, maintained living spaces.

Since 2021, sectional-title stock and sectional titles within estates have increased by 27% and 26%, respectively, with projects such as Banghoek, Edge, and Nuutgevonden Estate contributing considerably to this increase.

Year on year, the volume of property sales has consistently climbed, with 766 transactions in 2020/2021, 803 in 2021/2022, and 855 in 2023. This constant increase in sales volume, along with an increase in average transaction values, indicates a strong market poised for further growth.

Upcoming precincts and developments in the region, such as The Bridge, are well-positioned to address the growing demand for precinct living. The Bridge in particular aims to combine commercial, residential, and lifestyle-development opportunities within a forward-thinking, sustainable precinct.

This development caters to the semigration trend and the rise of community-driven living environments, with the University of Stellenbosch as a main tenant, solidifying its role as a hub for innovation and long-term impact.

As borrowing rates remain a concern for some; despite the reprieve we have recently seen with the slight cut in interest rates, developments like The Bridge that provide integrated services and long-term value, are becoming increasingly enticing.

Stellenbosch remains a key participant in the Western Cape's changing landscape, thanks to its exceptional growth trajectory, which is fuelled by innovation and sustainability. The town’s strategic location, with access to essential transport links such as the N1 as well as to major industrial hubs, further adds to its appeal.

I believe that the rise of catalytic projects like The Bridge, which is poised to cement Stellenbosch’s reputation as a top destination for property investment and communal living, is indicative of how this town is set to dominate the Western Cape's real estate future.