Property

One of South Africa’s oldest small towns saw property prices increase by 67% in five years

Kirsten Minnaar • 8 August 2026

One of South Africa’s oldest towns, Swellendam, has become one of the country’s top-performing small-town property markets, with house prices rising by 67% over the past five years.

Swellendam was established as a magisterial district in 1743, making it the third-oldest colonial settlement and the fifth-oldest town in the country.

The town lies at the foot of the Langeberg Mountains, about 220 km from both Cape Town and George, and has long served as a gateway between the Cape and the Garden Route.

Swellendam was named after the Governor of the Dutch Cape Colony, Hendrik Swellengrebel, and his wife, Helena ten Damme.

The Dutch East India Company established the district to administer the growing farming community on the eastern frontier of the Cape Colony.

Swellendam gained a unique place in South African history in 1795 when local residents declared the short-lived Republic of Swellendam.

Frustrated with Dutch East India Company rule, local burghers removed colonial officials and elected Hermanus Steyn as their president.

The republic lasted only a few months before British forces took control of the Cape later that year. During the 19th century, Swellendam grew into an important agricultural and trading centre.

Craftsmen, traders, and merchants settled in the town, while the Barry & Nephews trading business helped connect local farmers with markets through the Breede River.

The town’s fortunes changed during the 1860s after a severe drought, the collapse of Barry & Nephews, and the Great Fire of 1865 damaged the local economy.

Swellendam never regained its position as one of the Cape’s main commercial centres, but it retained its agricultural importance and much of its historic character.

Today, more than 50 heritage sites remain, including the Drostdy Museum complex and many well-preserved Cape Dutch buildings. Farming and tourism continue to play a major role in the local economy.

Property prices continue to climb

Swellendam has become one of the Western Cape’s strongest-performing country property markets as more buyers choose small-town living over major cities.

Seeff Property Group chairman Samuel Seeff told Daily Investor that property prices in Swellendam have increased by 67% over the past five years.

Together with Bredasdorp and Gansbaai, the Cape countryside recorded average property price growth of 9.5% in 2025.

Seeff said freehold family homes in these towns are typically priced between R1.5 million and R4.5 million. This offers buyers considerably more space than they would receive in many larger cities.

According to Seeff Country licensee Jaco Badenhorst, towns across the Cape Overberg and Karoo have become popular semigration destinations.

He said as many as half of buyers in some towns are semigrants from Gauteng, while others are Cape residents looking to downscale or retire.

Swellendam, along with towns such as Bonnievale, Barrydale, Struisbaai, Pearly Beach, and Riversdale, has seen its popularity rise.

This is because the town is appealing to buyers for its country lifestyle, access to schools, everyday amenities, and relatively stable local environment, Badenhorst said.

Many of these towns are also located in productive agricultural areas and attract tourists year-round, supporting local businesses and creating demand for property.

Swellendam offers residents easy access to outdoor attractions such as Marloth Nature Reserve, Bontebok National Park, the Breede River, and Buffeljags Dam. However, it remains within driving distance of Cape Town.

Combined with its long history, established farming community and more affordable property prices than many parts of the Western Cape, these factors continue to attract buyers.