Elections on business and property: How the vote can shape Joburg and Cape Town

The 4 November elections in South Africa could have a significant impact on the business and property sectors in Johannesburg and Cape Town. The relationship between the two cities has been uneven, with Cape Town emerging as a strong contender in recent years. According to Jacques Moolman, President of the Cape Chamber of Commerce and Industry, Cape Town now ranks as the continent's technology capital, hosting a significant portion of South Africa's tech industry.

In contrast, Johannesburg, while still considered the country's economic capital, may be struggling to keep up with Cape Town's growth. Property owners aged 50 and above in Johannesburg, who make up 63% of the city's homeowners, are closely watching the election results. Many of them are hesitant to sell their homes, hoping for a positive outcome that could help maintain or increase the value of their largest asset.

Meanwhile, younger professionals are moving to Cape Town, creating a tight market for skilled labor and driving up compensation in high-value industries like technology, software, and financial services. Cape Town's pay for intermediate and senior tech talent now exceeds Johannesburg's by nearly 8%. Both cities are experiencing demand for well-located properties, with rising prices in Cape Town and steady activity in Johannesburg's established suburbs.

For Johannesburg, the results of the election could take time to show a noticeable impact, while Cape Town's property market is already responding to the shift in business sentiment.