The most popular coastal towns for holiday homes in South Africa – and how much it costs to buy there
South Africa has over 3,000 kilometres of coastline scattered with cities, towns and villages and over 50 Blue Flag beaches and marinas. This has sparked an increasing trend of domestic semigration – especially along South Africa’s Garden Route.
“There has been a notable uptick in holiday home sales over the last two years, and coastal towns have been among the best performing areas, especially those along the Cape coast, but also the KZN South Coast,” said chairman of the Seeff Property Group, Samuel Seeff.
In some coastal areas, second home purchases have accounted for about 15% of sales since mid-2020. At the same time, Lightstone’s data comparison between 2021 and 2019 shows that many holiday towns experienced a significant increase in transaction volumes – and most are still ahead in 2022 compared to the pre-pandemic year, the property group said.
Some of the most notable towns that experienced the highest transaction volumes in 2021 include Kommetjie, Noordhoek, and Hermanus – which saw an increase of 155%, 123%, and 90%, respectively, compared to 2019.
In 2022, Kommetjie and Noordhoek continued to see high transaction volumes, as well as Kenton on Sea, which saw increases of 55%, 72%, and 63%, respectively, compared to 2019.
Seef also highlighted that Lightstone data shows that price growth for 2021 was higher in the coastal areas compared to the rest of the country, with an increase of 6.1% on the coast compared to 4.9% in the inland areas.
Domestic semigration paired with international buyers looking for properties in South Africa’s coastal towns means that houses in these areas are in good demand – representing an excellent investment for home buyers looking for a seaside holiday home.
“Holiday homes are versatile investments. The coastal areas have buoyant rental markets, including Airbnb, which means you can rent it out when not using it for your own purposes. It can be a great investment for the family to enjoy and can later become your retirement home, as is often the case,” said Seeff.
Seeff added that despite the rally in the market, prices continue to hold up well in these areas. Seeff Property’s most popular hotspots for holiday home buyers – with estimated costs a prospective buyer would be looking at and an explanation of why these areas are attractive – are listed below.
Hermanus/Gansbaai — Whale Coast
Hermanus
Regarded for its land-based whale watching, Hermanus is a great place to invest in a retirement or holiday home, with prices ranging from R1.2 million and R2 million for houses, says licensee for Seeff Hermanus Paul Kruger.
If you’re looking for something cheaper, Daniel Stemmet from Seeff Gansbaai says the village is very affordable and priced about 50% lower compared to nearby Hermanus. That means you can get a good deal on a holiday home. Plots with no sea views are available from R300,000 to R600,000, and beachfront stands from R1.8 million.
Mossel Bay/Dana Bay — Garden Route
Mossel Bay
Mossel Bay was named a Kwêla Town of the Year and is one of the fastest growing in terms of development, with five Blue Flag beaches. Herman Spies, sales manager for Seeff, noted that significant areas to invest in include Dana Bay at an average price of R1.7 million, Diaz Beach at R1.9 million, Island View at R1.8 million and Reebok at R1.8 million.
Langebaan/Paternoster — West Coast
Langebaan
Langebaan has boomed over the last two years and is enjoyed for its white-washed architecture, scenic yacht club and Mykonos development. Jaco and Tracey-lee Coetzee from Seeff Langebaan say that more buyers are settling here permanently aside from holidays and retirement.
They added that good areas to invest in include Blue Lagoon at around R3.2 million on average, Langebaan Country Estate at R3.8 million and Laguna Sands at R2.5 million.
Noordhoek/Kommetjie — Cape Town Deep South/Southern Peninsula
Kommetjie
Deon Labuschagne from Seeff Noordhoek says there has been an influx of local and foreign holidaymakers and buyers interested in Noordhoek and Kommetjie.
Although Noordhoek is priced higher, with homes often selling in the R5 million to R10 million range, there is still good value below that in some areas nearby Fish Hoek. Kommetjie tends to sell for around R3.5 million to R5 million on average.
Kleinmond/Betty’s Bay — Overstrand
Betty’s Bay
Kleinmond and Betty’s Bay attract holiday and retirement buyers as they offer excellent affordability. You can still find property from around R1.7 million in Kleinmond, according to Mike Tribelhorn, an agent with Seeff. They are close to Hermanus as well.
Struisbaai/Agulhas — Agulhas Region
Struisbaai
There has been noticeable demand in Struisbaai, says Richard Pratt, manager for Seeff. He added that they are seeing more semigration buyers and many new developments.
There is still some affordability away from the beach, with vacant stands available from R650,000, but houses are scarce below R2 million. The average seafront stand starts from R3.5 million, and seafront houses from R7.5 million.
Jeffreys Bay/St Francis Bay — Eastern Cape
St Francis Bay
Jeffrey’s Bay is one of the top surfing destinations with the best right-hand point break in the world. Holiday flats are available from around R800,000 and houses from about R1.8 million.
St Francis Bay offers waterfront and golf estate homes for luxury buyers, generally in the R2 million to R8 million range.
Kenton on Sea/Port Alfred — Eastern Cape
Kenton on Sea
Simon Oliver, Seeff’s licensee, says demand for property in Kenton, Port Alfred, Boesmansriviermond, Boknesstrand and Cannon Rocks has remained strong. The ability to work remotely has boosted sales, and many people are converting their holiday homes into permanent ones, especially in Port Alfred, which offers excellent value.
Homes in the R1.5 million to R2 million range are scarce, but you can find good value in the R3 million range in Port Alfred. Vacant land to build on is popular in Kenton and Boesmansriviermond. There is also a choice of retirement developments in the area.
Margate/Shelley Beach — KZN South Coast
Scottburgh
The South Coast has boomed over the last two years as buyers flocked here for good value. Great weather, good amenities and a choice of small towns dot the KZN South Coast, says Seeff licensee Michelle Harris.
The average property prices for Shelly Beach, St Michaels on Sea and Uvongo are still around R700,000 to R900,000, and you can find a nice top-class home for around R1.6 million. In Scottburgh and Pennington, the average house price is around R1.2 million to R1.8 million.
Stilbaai/Witsand — Cape South Coast
Stilbaai
Stilbaai and Witsand are popular for whale watching, surfing, fishing, and general water sport. Marlize Taylor, an agent with Seeff Stilbaai, says the town is not only for holidays but also for retirement and permanent living. More younger people with children are moving to these towns, and more buyers are coming from Gauteng.
There is plenty of vacant land in the R700,000 to R1.6 million range (for a distant sea view) for those wanting to build their own home, while houses range from around R2 million. Witsand offers apartments for R1.9 million and houses for R2.1 million.
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