Property

Two South African coastal towns popular with tourists where property prices reach R30 million

Kirsten Minnaar • 21 September 2026

Port Alfred and Kenton-on-Sea are historic Eastern Cape coastal towns attracting tourists and semigration buyers, with property prices ranging from affordable plots to R30 million luxury homes.

Port Alfred dates back to the arrival of the 1820 Settlers in the Eastern Cape. They had limited access to the outside world until the first ship entered the Kowie River in 1821.

The town was initially known as Port St Francis and underwent several name changes before becoming Port Alfred, in honour of Prince Alfred. Wharf Street, which dates to 1821, is one of the town’s oldest areas.

The Kowie River was seen as a potential port, and construction of the eastern and western piers began in 1843.

By 1863, 100 vessels were calling at the port each year. However, its importance declined after a railway connection to Grahamstown was established in the late 19th century.

Port Alfred continued to develop through the 20th century. The Royal Port Alfred Golf Club was founded in 1907.

An air force base built during World War II later became 43 Air School. The Royal Alfred Marina and small boat harbour were developed in 1989.

Kenton-on-Sea developed later as a holiday destination. Before the town was formally established, families were already spending holidays along this part of the coast.

In 1935, developer A.W. Pudney bought Tilt’s Farm on the Bushman’s River and began laying out plots for what became Kenton-on-Sea. Building was slowed by World War II, with only seven houses constructed in the early years.

After the war, the town expanded as holidaymakers took advantage of affordable building materials and riverside plots.

The Bushmans and Kariega rivers became central to the town’s identity and provided opportunities for boating, fishing, and other water activities.

Conservation also became important. The Bushmans Kariega Trust was established in 1970 to help protect the rivers and coastline.

Today, Port Alfred and Kenton-on-Sea remain part of the Eastern Cape’s Sunshine Coast and are popular among tourists and residential developers.

The Sunshine Coast property market shines

Port Alfred and Kenton-on-Sea are currently experiencing a compelling property growth story as semigration buyers flock to these towns.

Seeff’s licensee for the areas, Chase Reynolds, said this has been driven by record tourist numbers and a surge in demand from semigrating buyers, including young families, from KwaZulu-Natal and the Western Cape.

These coastal towns present lucrative opportunities for residential and holiday home buyers as well as buy-to-let investors. There has also been a surge in interest in vacant plots to build custom homes.

Port Alfred offers family residences from R1.5 million to R2.8 million, while the high-end Royal Alfred Marina reaches R30 million.

Kenton-on-Sea commands luxury house prices ranging from R3.5 million to R5.5 million, with elite estate homes reaching R15 million.

Vacant land is priced from R180,000 to R250,000 (eco estate) in Kenton and from R485,000 for premium sea-view plots in Port Alfred.

Neighbouring pockets such as Bathurst and Kleinemonde provide accessible entry points, with stands from R200,000.

A shortage of long-term rental stock supports yields averaging R12,000 to R15,000 per month, while peak-season holiday rentals generate R3,500 to R14,000 per night.

Reynolds added that this supply deficit, combined with sustained semigration, gives property investors an opening for capital growth and reliable rental returns in an expanding market.