Property

The South African town that went from a small European settlement with stock farmers and hunters to a millionaire hotspot

Kirsten Minnaar • 8 September 2026

Plettenberg Bay has transformed from a historic settlement into a sought-after millionaire hotspot, achieving some of the highest property prices in South Africa.

Plettenberg Bay has a history stretching back 100,000 years, with evidence of Middle Stone Age habitation found in Nelson Bay Cave and Matjes River Cave.

The area was later inhabited by Khoisan communities, who left behind tools, ornaments, and other archaeological remains.

Portuguese explorers regularly visited the bay during the 15th and 16th centuries. Bartolomeu Dias charted the bay in 1487, while Manuel da Mesquita Perestrello later called it Baia Formosa, meaning “Beautiful Bay”.

European settlement began in the 18th century, with stock farmers, hunters, and frontiersmen arriving from the Western Cape. In 1779, it was renamed Plettenberg Bay after Cape Governor Joachim van Plettenberg.

The town’s early development was linked to timber, farming, and shipping. While attempts to establish a harbour were unsuccessful, a whaling station operated on Beacon Island from 1910 to 1916.

From the 1960s onward, Plettenberg Bay grew rapidly as a holiday destination with the development of Beacon Island putting the town on the tourism map.

It has since developed into one of the Garden Route’s best-known coastal destinations, thanks to its historical heritage, beaches, nature reserves, restaurants, and a wide range of accommodation.

Plettenberg Bay’s rising popularity has also resulted in its property market gaining traction.

Seeff Plettenberg Bay licensee Alet Ollemans told Daily Investor that this growth has been driven by the post-Covid-19 boom, semigration, remote work, and a surge in international buyers.

Despite the weaker economic climate, these factors have continued to drive the area forward, she explained.

“There has been a steady flow of wealth to Plettenberg. It now boasts a high portion of valuable real estate, with nearly 75% of properties valued at over R3 million, and approximately 7% valued over R10 million,” Ollemans said.

Plettenberg Bay’s luxury property boom

Ollemans said that since 2020, particularly during the post-Covid market boom, the average property prices in Plettenberg Bay have more than doubled.

Average transaction prices have stabilised at R4.7 million to R5.2 million, with high demand and limited inventory continuing to favour sellers.

For full-title houses and freehold properties, average prices range from R4 million to R6 million.

Properties in estates range from R5.2 million to R20 million. Luxury waterfront and beachfront houses and villas range from R15 million to R60 million.

For sectional-title apartments and townhouses, average prices range from R2.8 million to R3.3 million.

Luxury apartments, including penthouses, range from R5 million to R20 million. Upmarket townhouses and modern estate units average from R4.5 million to R9 million.

According to Ollemans, Plettenberg Bay attracts semigration, remote-work, second- or holiday-home, and retirement buyers, and there has been a surge in international buyers.

“Buyers are predominantly older, with 65% of recent buyers over 50 years, 27% aged 36 to 49 years, and just 9% under 35 years,” she said.

Many of the other Garden Route towns – from Mossel Bay and the small towns to George, Knysna, and Oudtshoorn – are also popular.

These towns benefit from similar semigration, holiday, and retirement buyers and are highly desired for their coastal/outdoor lifestyle, good amenities and schools, and excellent infrastructure and services.

However, while the region is drawing buyer interest, Plettenberg Bay remains a standout performer, particularly with wealthy buyers.

“High-value properties in Plettenberg Bay achieve some of the highest property prices, second only to Cape Town’s Atlantic Seaboard,” Ollemans said.

“This includes several sales over R20 million concluded in Plett over the last five years, with price records of up to R78 million set by Seeff in 2024.”

In 2026, Seeff conducted several high-value sales, including R45 million and R37 million for houses in the Lookout Beach area, and R25 million for a house in Brackenridge Estate.

“Purchasing trends over the last few years indicate a notable shift to secure lifestyle estates, which now account for 39% of high-value property sales, and 36% of all property stock,” Ollemans said.

“The pristine Blue Flag beaches, lush indigenous forests, great weather, and laid-back cosmopolitan coastal lifestyle make Plettenberg Bay a highly desirable location.”