Property

One coastal city with ‘cheap’ luxury mansions in South Africa

Kirsten Minnaar • 26 January 2026

East London is emerging as a standout coastal hotspot where buyers can secure spacious, luxury homes at a fraction of the cost of South Africa’s major metros.

This is according to the Pam Golding Property Group, which explained that lifestyle appeal, improving infrastructure and investment potential are drawing buyers to the city.

East London, also known as Buffalo City, offers long white sandy beaches, a pleasant sub-tropical climate, and a wide range of recreational activities – from water sports to outdoor adventure.

It is uniquely positioned at the gateway to the Sunshine Coast in the north and the Wild Coast in the south, and is the only city in South Africa with a commercial river port at the mouth of the Buffalo River.

Positive news for the local economy is that the port is about to embark on an $8 million (R131.2 million) redevelopment project to revitalise the structures and an upgrade of the Latimer’s Landing facilities.

These projects are expected to benefit tourism and local businesses and create job opportunities in the city.

A Makro store recently opened in the suburb of Gonubie, which also created employment, while Beacon Bay Retail Park has upgraded the local shopping complex with a new facelift.

There is also talk that the Industrial Development Zone has attracted new investors for renewable energy.

With a selection of family-friendly beaches lapped by the warm waters of the Indian Ocean, East London is ideally placed to capitalise on its strong appeal to young families, first-time buyers, and longer-term investors.

Beyond its highly desirable lifestyle, it offers larger homes with scenic coastal views at prices more accessible than those in major coastal metros, said Pam Golding Properties area principals Mandy De Beyer and Rachel Petersen.

Properties offer value for money

“Overall, residential property prices in East London offer excellent value for money compared with the major metros,” De Beyer said.

“For example, a one- or two-bedroom flat or apartment in Beacon Bay sells for between R1 million and R1.1 million. A typical well-located starter property in this bracket would include two bedrooms, one bathroom and a single garage.”

First-time buyers generally look for freehold townhouses priced between R950,000 and R1.2 million, De Beyer noted.

This is still attainable in Beacon Bay, where two- to three-bedroom units with a single garage and no levies provide an affordable entry point.

“In Gonubie, a standard two-bedroom, one-bathroom townhouse with a carport is available for around R850,000, often with low or no levies. Importantly, banks are showing increased flexibility, which continues to support first-time buyers,” she said.

“Value for money is also evident at the next level up. A medium-sized home in sought-after Nahoon, comprising three bedrooms, two bathrooms, a double garage and a swimming pool, can be acquired for R2.2 million to R2.3 million.”

According to De Beyer, a comparable home in Beacon Bay would sell for between R1.9 million and R2.1 million.

Homes in secure, gated estates remain highly sought after in East London and continue to show strong capital appreciation.

In Bishops Country Estate in Beacon Bay, the average selling price has increased by 8.66% over the past year.

Other well-regarded estates include Princess Alice Ridge in the heart of Nahoon and The Quarry, located on the border of Baysville and Selborne.

Prices in established estates such as these typically range from R3 million to R6 million in The Quarry. In Bishops Country Estate, they range from R3 million to R8 million, and in Princess Alice Ridge, they go from R5 million to R8.5 million.

“Semigrants are relocating to East London for its lifestyle appeal and close-knit community, which offers a relaxed coastal atmosphere while still providing the benefits of a larger city,” Petersen said.

“Residents enjoy proximity to leading schools such as Selborne College, Clarendon, Hudson Park, Merrifield, Stirling and OosKus, along with quality hospitals and a full range of amenities.”

Petersen said most of Pam Golding’s purchasers are either local buyers moving within East London, or semigrants from Durban, Johannesburg, King William’s Town, Butterworth and Mthatha.

“Activity in the housing market has definitely improved in 2025 compared to the previous year. The most active price band is between R1.5 million and R3 million, while the top end of the market ranges from R4 million to R12 million,” she said.

“The most sought-after high-end suburbs are Nahoon Beach and Blue Bend.” Here, buyers can find modern, luxury homes with river and river-mouth views that typically sell for between R9 million and R10 million.

According to Petersen, buyers relocating to East London primarily seek freehold properties. Both younger buyers entering the market and retirees prioritise modern, single-storey townhouses.

They prefer properties with double garages, small gardens and pet-friendly features, generally priced below R2 million.

“Middle-aged buyers (36 to 49 years) typically look for freehold family homes close to schools, shopping centres and offices,” Petersen said.

This group’s ideal home has four bedrooms, a double garage, a swimming pool and sufficient bathrooms to accommodate the family, in the price range from R2.5 million to R3.5 million.

Popular East London suburbs

One popular East London suburb, according to De Beyer and Petersen, is Nahoon. This area is close to leading schools, quality healthcare, Nahoon Beach and a golf club. The average home price in 2025 was around R2.45 million.

Freehold sales activity has nearly doubled since 2024, while sectional title sales have remained stable, and vacant-land activity has also risen. Notably, 57% of recent buyers are under 50.

Beacon Bay and Beacon Bay North are also popular suburbs that offer a wide range of property options and combine suburban tranquillity with convenient access to amenities.

The average selling price in 2025 was about R2.6 million (R1.6 million in Beacon Bay North). Purchasers aged between 36 and 49 make up 41% of buyers in Beacon Bay and 44% in Beacon Bay North.

Sales activity in freehold has held steady, sectional title has weakened slightly, while sales of vacant plots have slowed markedly in 2026.

Another suburb, Gonubie, is popular with young professionals, families with school-going children and investors.

It is in high demand for its coastal lifestyle, natural beauty, community spirit, safety and value for money. The average selling price in 2025 was R1.48 million.

A standard two-bedroom, one-bathroom townhouse with a carport sells for around R850,000, while a typical three-bedroom, two-bathroom home with a double garage sells for about R1.5 million.

This increases to around R2 million if the property includes a flat and is in good condition. A three-bedroom home with two bathrooms, a double garage, a swimming pool, views, and a desirable location will achieve an average price of R2.5 million.

De Beyer and Petersen explained that post-Covid remote-working trends drove many residents to sell homes in East London’s suburbs and relocate to the East Coast. This extended stretch covers areas 20 km to 150 km from the city.

Homes here benefit from proximity to the sea, rivers and natural surroundings, and many families have purchased either ready-built properties or plots to build bespoke homes.

The East Coast comprises a number of small coastal villages, including Glen Stewart, Glen Navar, Sunrise-on-Sea, Balugha River Estate, Khamanga Bay, Cintsa and Cintsa West.

Balugha River Estate, which consists of 94 erven, provides a useful example: over the past year, the average selling price for a residence has been R3.25 million.

Vacant land in the area averages R455,000. These selling prices reflect a notable 30% increase in value compared to 2025.