MAIN IMAGE: Craig Millar – Tyson Properties Midlands, David Jacobs – Rawson Property Group Gauteng, Tanya Bruwer – broker-owner of RE/MAX Complete, Lise van Zuydam and Greg Rhodes-Jones – Tyson Properties Howick and Midlands, Barbara Larney – broker-owner of RE/MAX Wine and Whales (Hermanus)
Kerry Dimmer
Many buyers assume a smaller town will automatically be cheaper than a larger municipality, but “cheaper property” and “cheaper living” are not the same thing. Sometimes the opposite is true: the fixed costs of electricity and municipal services can be higher, and a buyer who sells up in the city, expecting to spend less, may find the economics look very different after the move.
That is why agents have a real role to play in the affordability conversation, especially in smaller markets and when selling to remote workers and families who forgo the commute but incur higher service charges, backup power and water, extra connectivity, and the upkeep of a larger property. The agent who sets out what a property costs to live in, not just to buy, manages expectations before the sale rather than dealing with disappointment afterwards. The question is not simply whether small-town property is cheaper, but what it actually costs to live there.
We asked small-town agents to explain the dynamics.
Cheaper houses may have a different cost structure
Craig Millar, KZN Midlands, Tyson Properties Midlands
- Does buying in a small town necessarily mean lower property ownership costs, or does a cheaper purchase price need to be offset by higher running and maintenance costs?
If you compare the monthly rates and service costs for cities like Ethekwini, Johannesburg, and Cape Town to those of Pietermaritzburg and uMngeni, you’ll find that, of the big cities, only Ethekwini is comparable. Cape Town comes in a little higher, with Johannesburg outstripping the others by around R600–R700 per month.
There is little difference between Pietermaritzburg (Msunduzi Municipality) and smaller towns like Hilton, Howick, and Nottingham Road (uMngeni Municipality) in service costs, although Pietermaritzburg is marginally cheaper than uMngeni. What does need to be considered, though, is the level and quality of the services provided. Even within a municipality, commitment to service delivery can differ, for example between the southern and northern areas of Pietermaritzburg.
- Have you seen buyers underestimate the cost of maintaining larger lifestyle properties?
Most are fairly transferable costs and are the same for big cities as for smaller towns. However, the cost of septic tanks and soakaways in places like Hilton is far cheaper than the monthly cost of waterborne sewerage.
Going solar seems to be the preferred option, with both Eskom and local municipalities raising tariffs above inflation every year. Setup and clawback periods for solar installations have come down dramatically over the past five years, and a number of providers now offer solar rental products with no upfront payment.
Lower municipal costs don’t guarantee lower service costs
David Jacobs, Gauteng regional sales manager at the Rawson Property Group
- How do municipal rates, electricity, water, refuse, and other fixed service charges compare with those in larger cities? Are there costs that buyers routinely overlook?
Municipal rates and taxes are generally lower in smaller towns, but largely because property values tend to be lower. Since rates are linked to a property’s value, a lower-valued home will generally attract lower rates.
Something important to note is that the infrastructure in smaller towns isn’t necessarily as good as in the metros. There might not be a constant supply of electricity and running water, and homeowners may need to invest in additional solutions such as solar power, backup systems, water tanks, or alternative water supplies to manage interruptions. These are costs buyers don’t always factor into their initial budget.
- Are utilities or services more expensive because of the town’s size, infrastructure limitations, or municipal structure?
Smaller towns generally have a smaller ratepayer and economic base, which means less municipal income to invest in infrastructure, maintenance, and service delivery. That can result in fewer services or less frequent upgrades than in larger metros. Supply and demand play a role too: larger populations create greater demand and a broader revenue base, which can support a wider range of services and infrastructure.
Day-to-day commuting may cost less in a smaller town, with less traffic, shorter travel times, and potentially lower fuel consumption. But that saving can be offset by the long-distance travel some residents take on for major shopping, entertainment, specialist healthcare, or other services not available locally.
There is also an interesting lifestyle factor. Smaller towns often have fewer entertainment, retail, and leisure options on the doorstep, which can naturally reduce discretionary spending.
Distance matters, but so does what is available locally
Tanya Bruwer, broker-owner of RE/MAX Complete
- How far do residents typically travel for things that aren’t available locally?
One misconception about small-town living is that residents have to travel for everything. In the Langeberg, most everyday requirements are available locally, including schools, doctors, pharmacies, supermarkets, restaurants, banking, and professional services. Residents generally travel only to larger centres for more specialised medical treatment, certain specialist services, or larger retail needs.
Worcester, for example, is about an hour from much of the Langeberg and offers a wider range of medical and commercial services, while Cape Town is generally around two hours away, depending on the town and route. Cape Town International Airport is therefore still reasonably accessible for residents who travel regularly, while day-to-day life can largely be conducted locally.
For many buyers, this is exactly the appeal: the quieter lifestyle and affordability of a smaller town without feeling completely cut off from the larger centres.
Lifestyle property comes with its own price tag
Lise van Zuydam and Greg Rhodes-Jones from Tyson Properties Howick and Midlands
- Have you seen buyers underestimate the cost of maintaining larger lifestyle properties?
Rates are often lower in rural areas than in cities, so that is a saving. But as fuel prices fluctuate, disposable income becomes a factor in maintaining a property. That said, most buyers looking at larger lifestyle properties have done their homework on the costs and the additional investment in security or alternative power.
It’s important to educate buyers on all the expenses that go hand in hand with smallholdings, especially if they are relocating from the city. An electricity rental line of R3,500, for example, is a charge simply for access to the supply, in addition to paying for usage.
- Does buying in a small town necessarily mean lower property ownership costs, or can a cheaper purchase price be offset by higher running and maintenance costs?
Small-town living has its pros and cons. The running costs of a small-town property can actually be much lower than in the city, and even your cappuccino is cheaper. Areas such as Nottingham Road in the KZN Midlands have become increasingly popular, and prices have soared. In Howick, an influx of families has driven up property values, which also means schools fill up quickly.
For remote workers, connectivity is part of the property
Barbara Larney, broker-owner of RE/MAX Wine and Whales (Hermanus)
- What are the considerations for remote workers specifically?
Before they buy, they should test the infrastructure they need. Fibre should generally be the primary connection, but coverage needs to be confirmed at the exact property address rather than assumed. A reasonable working allowance for fibre is around R700–R1,200 per month, depending on provider and speed, but remote workers should also consider a second connection.
An LTE or 5G backup could add roughly R300–R700 per month, depending on network and data package. So someone whose income depends on staying online should realistically budget around R1,000–R1,900 per month for primary and backup connectivity. How much they need to spend on backup power depends largely on what must keep running during an interruption. At the simplest level, a small UPS may be enough to keep the fibre ONT and Wi-Fi router online. Someone who needs to power laptops, monitors, and other equipment for longer may instead look at an inverter-and-battery system.
