Top private schools carrying a tiny town in South Africa
Property experts have reported that the property market in Makhanda (formerly Grahamstown) is experiencing significant growth, driven largely by renewed demand from families of children attending top schools in the town.
In addition to the renewed interest in the residential property market, Makhanda Pam Golding Properties’ area principal Gordon Shutte said the Eastern Cape town has been experiencing gradual infrastructure improvements.
“Encouragingly, there have been improvements in infrastructure maintenance in certain parts of the town, including upgrades to key roads and ongoing efforts to enhance the appearance and functionality of the central business district,” said Shutte.
“There has also been a gradual revitalisation of commercial premises, with several businesses refurbishing buildings and investing in new ventures.”
He said that the developments are contributing positively to confidence in the town and its property market.
Makhanda is recognised as one of South Africa’s top educational hubs. It is home to Rhodes University, which accommodates around 9,000 students.
The town also houses several prominent independent boarding schools, including the Diocesan School for Girls (DSG), St Andrew’s College, St Andrew’s Prep, and Kingswood College.
Additionally, the town hosts highly regarded government schools, including Graeme College, PJ Olivier, and Victoria Girls’ High School.
“The presence of leading schools, a respected university, and a strong sense of community creates an environment that appeals to families, investors, and lifestyle buyers alike,” said Shutte.
He said that buyers are increasingly recognising the town’s long-term value and the opportunities it presents for both residential living and property investment.
Makhanda Pam Golding Properties area manager Welmarie Calitz said buyers who relocate for schooling, often from larger metropolitan areas, usually buy houses between R2.5 million and R5 million in Makhanda.
Calitz said that student accommodation linked to Rhodes University accounts for a large share of the property market.
“Schooling is not the only factor attracting home buyers. Some are drawn purely by the town’s lifestyle appeal, while others are residents returning to their roots, including expatriates,” she said.
Key areas with renewed buyer interest include Oatlands North, Somerset Heights, Kingswood, and Sunnyside, with houses averaging under R2 million.
Saving the town from collapse
The town of Makhanda, located between Port Elizabeth and East London, has a history of municipal mismanagement, having received “disclaimers of opinion” from the Auditor General since 2018.
This is one of the worst possible audit outcomes, indicating the lack of supporting financial documentation from the municipality.
According to a 2025 GroundUp report, residents of Makhanda have been experiencing water outages since 2012, from a municipality with a collection rate under 60%.
The lack of a continuous, reliable water supply has reportedly forced large revenue-generating institutions to seek alternative sources.
Rhodes University, for example, which is the single largest ratepayer, is planning to establish its own water treatment facility to process water from its borehole system, and has urged alumni to assist in funding the initiative.
“A significant challenge facing the university is the unreliable water supply from the Makana municipality,” said deputy vice-chancellor Professor Mabokang Monnapula-Mapesela.
Two of the top three private schools in Makhanda have found alternative sources of water to provide a reliable supply to students, including their own borehole and harvested rainwater.
However, St. Andrew’s College still relies mainly on municipal water, while using its own water supplies during water outages.
Furthermore, Tyantji residents, among many others in Makhanda, have reported water shortages. In 2025, an incident was reported of a man who died after being unable to access water following his house fire.
Retired water engineer Peter Sturrock said that 28 million litres is needed daily to meet the 18 million litre demand, due to the many leaks in the reticulation system.
In 2015, an upgrade to the James Kleynhans Water Treatment Works was announced as a solution to the city’s water issues.
This upgrade, which sources water from the Glen Melville Dam on the Orange/Fish scheme, was intended to double the treatment plant’s capacity from 10 million litres to 20 million litres per day by 2017.
However, the project has not yet been completed. The costs have surged from the initial estimate of R160 million to over R700 million to date. This is according to Phillip Machanik, a councillor with the Makana Citizens Front.
Below are photos of some of the houses that private school families are buying in Makhanda.
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