South Africans buying R15 million homes in tiny seaside town where the average person only makes R21,400 a month

·15 May 2026

South Africans are buying homes worth up to R15 million in the small West Coast town of Velddrif in the Western Cape.

Located about 145km north of Cape Town, Velddrif has become one of several West Coast towns attracting buyers looking for a coastal lifestyle within reach of the city.

The town sits on the Berg River estuary and is known for its fishing industry, marina developments and birdlife.

Property prices in the town now range from under R1 million for vacant plots to as much as R15 million for high-end waterfront and beachfront homes.

According to Pam Golding Properties area manager Samantha Nel, Velddrif is still considered relatively affordable compared to nearby coastal towns, although demand has started pushing prices sharply higher.

“Velddrif is in its early growth stages with more affordable entry-level prices than many other nearby West Coast towns,” said Nel.

“That said, due to the increasing demand, the region is experiencing strong price growth with property values having more than doubled in some West Coast towns over the past few years.”

Apartment prices in the town currently range between R1.35 million and R1.65 million, while entry-level houses sell for between R1.85 million and R2.5 million. Mid-range homes are priced from R2.7 million to R3.4 million.

At the upper end of the market, waterfront and beachfront properties are selling for between R7.5 million and around R15 million.

The price growth comes despite relatively modest incomes in the wider Berg River Local Municipality, where Velddrif is located.

According to the latest tax statistics published by the South African Revenue Service (SARS), the municipality has 9,494 registered taxpayers with an average taxable income of R257,020 a year, or roughly R21,418 a month.

That is significantly lower than the Western Cape average taxable income of roughly R348,000 annually, or about R29,000 per month.

Big projects planned for the small town

Nel said the town appeals to a broad range of buyers, many of whom are motivated by lifestyle considerations rather than proximity to major economic centres.

“Velddrif attracts a mixed but lifestyle-driven buyer pool. Most buyers are in the 36 to 64 year bracket, but the number of younger buyers is steadily increasing,” she said.

“The dominant segments tend to be retired and semi-retired buyers, holiday home buyers, investors and families.”

The town has fewer than 4,000 homes, but several developments and infrastructure projects are expected to support further growth.

One of the most significant planned projects is the new Carinus Bridge over the Berg River, which is expected to begin construction in 2027.

According to the Velddrif Sakekamer, the bridge is intended to improve regional connectivity, reduce traffic congestion and support economic development in the area.

Another project underway is the De Drift shopping mall, which Nel said could strengthen Velddrif’s position as a service hub for smaller surrounding towns.

“The increasing demand has resulted in more residential developments with estate living, gated communities and lifestyle estates expanding. Of course, prime land is limited, which is bound to push prices higher,” said Nel.

Velddrif’s economy is built largely around fishing, tourism and salt production. The town has a working harbour at Laaiplek and forms part of the West Coast’s Crayfish Route.

Port Owen, one of the town’s better-known residential areas, includes a marina with 3.5km of waterways. Tourism also plays a significant role in the local economy.

The Berg River estuary is a major birdwatching destination, with more than 200 bird species recorded in the surrounding wetlands. The area also attracts visitors for fishing, boating, art galleries and seafood restaurants.