{"id":880232,"date":"2026-10-17T17:00:00","date_gmt":"2026-10-17T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=880232"},"modified":"2026-10-16T15:49:04","modified_gmt":"2026-10-16T13:49:04","slug":"small-seaside-town-in-south-africa-where-house-prices-are-increasing-by-r1-million-every-year","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/880232\/small-seaside-town-in-south-africa-where-house-prices-are-increasing-by-r1-million-every-year\/","title":{"rendered":"Small seaside town in South Africa where house prices are increasing by R1 million every year"},"content":{"rendered":"\n

House prices in Hout Bay, a seaside town on Cape Town\u2019s Atlantic Seaboard, have surged over the past five years, with the average property price climbing by around 141% as demand for luxury homes accelerates.<\/p>\n\n\n\n

The average price has increased from R3.53 million five years ago to approximately R8.5 million, according to property data from Propstats.<\/p>\n\n\n\n

The latest average is also up from R5.5 million last year, reflecting a growing number of high-value transactions in the area.<\/p>\n\n\n\n

Stephan Cross, manager for Seeff Hout Bay, said the market was performing strongly despite a broader slowdown in property activity, with homes selling at their fastest rate in more than a decade.<\/p>\n\n\n\n

Constrained supply has helped support prices, while sellers are increasingly achieving close to their asking prices.<\/p>\n\n\n\n

\u201cAlmost half of all sellers are achieving close to or even their full asking price, and in some instances above their asking prices,\u201d Cross said.<\/p>\n\n\n\n

The shift represents a significant change from five years ago, when sellers typically accepted offers around 10% below their asking prices and properties could remain on the market for as long as 175 days.<\/p>\n\n\n\n

Properties are now taking just over a month to sell on average, compared with 78 days last year. Sellers are achieving prices approximately 3.9% below asking, according to Cross.<\/p>\n\n\n\n

The composition of sales has also changed considerably. Five years ago, fewer than 2% of property transactions in Hout Bay exceeded R10 million.<\/p>\n\n\n\n

This year, approximately 22% of sales have been above that level, with several transactions exceeding R20 million, particularly in gated estates.<\/p>\n\n\n\n

Only around 40% of sales are now below R5 million, with these transactions largely involving apartments and sectional-title properties. Recently, properties have sold for R12.995 million, including VAT, R11.5 million and R11 million. <\/p>\n\n\n\n

Gated estates have become a major attraction for affluent buyers. Ruyterplaats has a median property price of R18.75 million, with several homes selling for more than R20 million over the past two years.<\/p>\n\n\n\n

Kenrock has a median price of R17.9 million, with transactions increasingly ranging from above R10 million to more than R20 million.<\/p>\n\n\n\n

Major new developments<\/h2>\n\n\n\n
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Cross said demand was being driven partly by buyers relocating from Gauteng and KwaZulu-Natal, alongside international purchasers, particularly from Germany and the United Kingdom.<\/p>\n\n\n\n

Investors seeking properties for short-term holiday rentals, including Airbnb accommodation, are also contributing to demand.<\/p>\n\n\n\n

Hout Bay offers an alternative to more established luxury property markets along the Atlantic Seaboard, combining coastal living with access to Cape Town\u2019s broader amenities.<\/p>\n\n\n\n

The town lies in a valley on the Cape Peninsula and includes a working harbour, residential neighbourhoods and surrounding mountain landscapes.<\/p>\n\n\n\n

New developments, including boutique estates and luxury apartments, are adding to the area’s property offering. The growth of the ultra-luxury Kerzner Estate has also pushed prices into a higher bracket.<\/p>\n\n\n\n

Situated on the slopes of Leeukoppie, the former private estate of businessman Sol Kerzner, the development offers views of the Atlantic Ocean, Hout Bay and Chapman’s Peak.<\/p>\n\n\n\n

Apart from its luxury developments, Hout Bay attracts residents with its beaches, water sports, hiking, cycling, horseback riding, schools and local amenities.<\/p>\n\n\n\n

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More photos of Hout Bay<\/h2>\n\n\n\n
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House prices in a seaside town on Cape Town\u2019s Atlantic Seaboard, have surged over the past five years, with the average property price climbing by around 141%.<\/p>\n","protected":false},"author":92,"featured_media":880242,"comment_status":"open","ping_status":"","sticky":true,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"failed","_sma_x_autopost_error":"Instagram publishing failed: Instagram returned HTTP 400: Media ID is not available","_sma_x_post_id":"2111472568670495103","_sma_facebook_post_id":"191437357620492_2240270256793373","_sma_instagram_post_id":"","_sma_x_attempts":1,"footnotes":""},"categories":[12755],"tags":[26146,11693,853],"class_list":["post-880232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-hout-bay","tag-seeff-property-group","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/880232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=880232"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/880232\/revisions"}],"predecessor-version":[{"id":880244,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/880232\/revisions\/880244"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/880242"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=880232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=880232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=880232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}