Lifestyle

How much it costs to live in one of South Africa’s most expensive small towns in the middle of nowhere

Malcolm Libera

 ·29 Jun 2026

It will cost you over R30,000 a month to live in Oudtshoorn in the Western Cape, which is widely considered one of the most expensive towns in terms of rates and taxes.

Oudtshoorn, known as the “ostrich capital of the world,” has a population of around 60,000 and is the largest town in the Klein Karoo.

It is situated between the Swartberg Mountains to the north and the Outeniqua Mountains to the south, roughly halfway between Cape Town and Gqeberha.

Its economy relies heavily on ostrich farming and tourism, while its remote location has created unique financial challenges.

Although far removed from South Africa’s major metropolitan areas, Oudtshoorn has gained a reputation for imposing unusually high municipal charges on residents.

Property owners have long complained that rates and service costs compare unfavourably with those in neighbouring municipalities, including wealthier coastal centres along the Garden Route.

For the 2026/27 financial year, the Oudtshoorn Municipality approved a tariff structure that includes a 6% increase in property rates and sanitation charges, and a 12% increase in refuse removal fees.

This also includes a 9.5% increase in electricity tariffs in line with the National Energy Regulator of South Africa’s framework. 

Water consumption charges remain unchanged on average, although residents still pay fixed infrastructure-related charges.

Unlike larger cities with extensive industrial areas and corporate headquarters that contribute significant tax revenue, Oudtshoorn depends far more heavily on residential property owners to fund municipal operations.

The municipality also faces high levels of poverty and unemployment, with many households qualifying for indigent support and free basic services.

This has reduced revenue collected from residents while increasing the burden on those who do pay rates and service charges.

Maintaining water and electricity networks across a geographically isolated, semi-arid region is expensive, particularly as ageing systems require continual repairs and upgrades.

The municipality has also introduced fixed infrastructure charges to help cover these costs regardless of actual water consumption.

Living costs in Oudtshoorn

Additionally, historical financial pressures and repeated incidents of theft and vandalism have forced the municipality to spend millions on repairs.

This includes damaged electrical cables, water meters and other infrastructure, with many of those expenses reflected in higher tariffs for paying customers.

Housing prices in Oudtshoorn vary significantly depending on location. According to Property24 data, homes in the sought-after West Bank area frequently sell for between R2.5 million and R3.9 million. 

More affordable three-bedroom properties can be found in neighbourhoods such as Toekomsrus and Oudtshoorn North, where prices often range from R1.2 million to R1.5 million.

Overall, the average property price in the town falls between R1.3 million and R2.6 million, depending on the size and type of home, with a typical asking price of around R2.6 million.

Using that R2.6 million figure as a benchmark, the monthly repayment on a 20-year home loan at a prime interest rate of 10.5% with no deposit is approximately R25,958.

Property rates are calculated after the first R15,000 of the property’s value is exempted, leaving rates payable on R2.585 million in this example.

Electricity is charged using an inclining block tariff, meaning the cost per unit rises as consumption increases, while water charges are also structured in tiers that become more expensive once households exceed certain usage thresholds.

Based on an estimated monthly consumption of 600 kWh of electricity and 15 kilolitres of water, plus property rates and other standard municipal charges, the average monthly municipal bill is about R5,154.

When combined with the estimated bond repayment, the total monthly cost reaches roughly R30,797 for a homeowner with a mid-range property and average utility usage.

Photos of Oudtshoorn, Western Cape