MAIN IMAGE: Fritz Swanepoel – CEO of Leapfrog Property Group
Opinion
As South Africa heads towards November’s local government elections, most of the commentary will be about politics. Fritz Swanepoel, CEO of Leapfrog Property Group, believes homeowners should also be paying attention for a more personal reason: for the majority of South African families, the home is their single largest asset, and its value is increasingly shaped by how well their municipality performs.
“For most families, the home is the retirement plan, the inheritance and the safety net rolled into one,” says Swanepoel. “And the data is now clear that the quality of local governance has become one of the biggest drivers of what that asset is worth. Understanding that link helps homeowners make better decisions about buying, selling, maintaining and engaging with their community.”
One country, diverging markets
The numbers tell the story. Lightstone’s figures for March 2026 put national house price inflation at 3.85%, but beneath that average, the market has split noticeably. The Western Cape recorded growth of 8.28%, more than double the national rate, while Gauteng managed 4.03% and Limpopo slipped into negative territory.
Zoom out further, and the divergence becomes generational. Independent economist John Loos has noted that Western Cape house prices have risen by 188% since 2010, against 81.6% in Gauteng. Two homeowners who bought similar properties in 2010, in different provinces, have ended up with very different wealth outcomes.
“There are many factors behind those numbers – lifestyle, geography, the coastal premium,” Swanepoel acknowledges. “But strip those away and a consistent pattern remains: buyers are rewarding areas where services are delivered reliably. Semigration is often described as a lifestyle trend, but at its core it reflects households and investors seeking out places where the basics work.”
Buyers are underwriting governance
Swanepoel says the shift is visible in how buyers behave on the ground. “A decade ago, buyers asked about the school district and the commute. Today they ask whether the water stays on, whether the substation is maintained, whether refuse is collected and whether the municipal bill will be accurate. Buyers are effectively doing due diligence on the municipality before they do due diligence on the house.”
That behaviour has real pricing consequences. In municipalities with reliable services, demand is deep and homes hold their value. In areas where delivery is inconsistent, buyers factor in the cost of self-supply, boreholes, tanks, inverters, solar and negotiate accordingly, while sellers face longer selling times.
“The reality for homeowners is that what happens outside the boundary wall matters as much as what happens inside it,” says Swanepoel. “A beautifully renovated home in a well-run area commands a premium. The same home where services are unreliable has to work much harder for its price.”
The good news: the trend can turn
Importantly, Swanepoel stresses that a municipality’s trajectory is not fixed and neither is a suburb’s. “We’ve seen areas recover remarkably when billing is cleaned up, infrastructure spending resumes and residents, ratepayer associations and business chambers engage constructively with their councils. Property markets respond quickly to visible improvement, because buyers are always looking for value in areas on the way up.”
That, he says, is where informed residents come in. “Municipal audit outcomes, infrastructure budgets and delivery track records are all matters of public record. Residents who follow them and who participate in budget consultations, valuation objections and ward structures are not just better citizens. They’re better custodians of their own asset.”
Practical implications for owners and buyers
For sellers in areas where delivery has been inconsistent, Swanepoel advises preparation over panic: price to the market that actually exists, resolve municipal account disputes early so the rates clearance certificate doesn’t stall the transfer, and showcase resilience features, water storage, solar, backup power because buyers now pay a premium for self-sufficiency.
For buyers, he suggests adding a governance layer to the usual checklist. “Before you fall in love with the house, look at the municipality. Its audit history, its infrastructure spend, its debt position. You’re not just buying a property; you’re buying a long-term relationship with a local government, and in some cases, you’re buying into an area with real upside as it improves.”
His conclusion is a simple reframe. “We’ve always said the three rules of property are location, location, location. In today’s South Africa, governance is part of location. Homeowners who understand that, who watch it, engage with it and factor it into their decisions will protect and grow their biggest asset far better than those who don’t.”
