The one South African town where property values more than tripled in 10 years

Semigration trends and the migration of wealth to the West Coast mean the average price of homes in Elands Bay has more than tripled since 2014, with another not far behind.

This is according to the latest data from the Seeff Property Group, which noted that the small West Coast towns and villages are no longer just for holidays and retirement.

The striking increase in property prices is largely attributed to semigration trends and the migration of wealth to the Western Cape.

The phenomenon of semigration, where individuals and families relocate within South Africa to regions with better lifestyles or business opportunities, has made the West Coast a prime destination.

In particular, the scenic fishing villages that dot the coastline, once primarily seen as holiday or retirement spots, are now attracting a broader demographic of buyers.

The appeal of these towns has evolved beyond their tranquil settings, as growing numbers of South Africans seek out the lifestyle benefits of the area while also capitalising on relatively affordable property prices compared to other regions.

Wealth migration to this area, driven by those seeking a more relaxed pace of life while still engaging in professional or business activities, has led to a surge in demand for homes, especially in towns like Langebaan, Yzerfontein, and Paternoster.

In Langebaan, for instance, property prices have soared, with luxury homes fetching between R5 million and R8 million.

The town has benefitted from its proximity to business hubs like Saldanha and Vredenburg, attracting both professionals working in the region and individuals on business contracts.

As a result, the local property market recorded over R1.3 billion in transactions in the 12 months leading up to September 2024, according to Lightstone data.

Other towns along the coast, including Yzerfontein and St Helena Bay, have seen similar growth, with property values doubling over the last five years.

According to data from Seeff Property Group, this shift is not isolated to Elands Bay alone but is part of a broader trend affecting many West Coast towns.

The average price of homes in Elands Bay has jumped from R400,000 in 2014 to R1.25 million in 2024, reflecting a 213% increase.

This is closely followed by property in Yzerfontein, which also almost tripled (196%), with average prices increasing from R1.25 million to R3.1 million.

Houses in St Helena Bay and Paternoster followed with average house price increases of 107% and 106%, respectively.

Foreign buyers have also played a role in driving demand in the Western Cape’s coastal towns.

These scenic locations, featuring picturesque Cape vernacular architecture and unspoiled beaches, appeal not just to South Africans but also to international buyers looking for vacation homes or investment opportunities.

The rise in property values and sales activity, particularly during the property market boom of 2021 and 2022, can be linked to this influx of both foreign and local wealth.

The rental market has also seen a significant boost. Areas like Yzerfontein and Langebaan have an active rental sector, with high demand outstripping supply.

Small properties typically rent for between R10,000 and R12,500 per month, while larger, three-bedroom homes can command R16,000 to R24,000.

Luxury rentals, especially in estates or high-end suburbs, go for R25,000 to R30,000 monthly.

In Paternoster, rental prices are slightly lower, with the median home price at around R1.9 million, making it more accessible to a broader range of renters.

While wealthier buyers and retirees dominate the market in some areas, younger families are still drawn to more affordable towns like Saldanha, Vredenburg, and Malmesbury.

These towns tend to offer more reasonably priced properties, appealing to a different demographic compared to the luxury markets in Langebaan or Yzerfontein.

The Western Cape, particularly the West Coast, remains a popular destination for internal migration.

According to Lightstone Property, over 3,500 homeowners from Gauteng and nearly 900 from KwaZulu-Natal relocated to the Western Cape, underscoring the region’s enduring appeal.

The combination of lifestyle advantages, relative affordability, and growing infrastructure continues to make this coastal area a sought-after destination for both buyers and investors.

Read: South African security town with its own schools, hospitals, shopping centres, and churches