One area where property prices increased by R3 million in one year
Kalk Bay, a seaside village in Cape Town, has been making waves on the property market due to its unique blend of old-world charm and modern appeal. The median house price increased by over R3 million in one year.
Forbes recently voted Kalk Bay one of the coolest neighbourhoods in the world. Rising property prices and limited available land indicate that this once-quiet coastal retreat is becoming the city’s most coveted address.
With soaring demand and little room left for new development, Kalk Bay is on its way to becoming the Cape’s “hip holy grail”.
According to Lightstone data, property prices in Kalk Bay have surged dramatically in 2024.
The median house price has jumped by a remarkable 68%, from R4.76 million in 2023 to R8 million, while sectional title prices have increased by 31.8%, from R4.55 million to R6 million.
This price surge is paired with a lack of available land, limiting growth and making the existing properties even more desirable. In fact, land sales have stagnated, largely due to the lack of available vacant plots.
The property shortage isn’t limited to land either. Paula Giusti and Jonathan Alexander, area specialists for Lew Geffen Sotheby’s International Realty, highlight a significant shortfall in the availability of homes, particularly in the entry and mid-level price brackets.
Well-priced homes in the area are snapped up almost immediately after hitting the market.
According to them, the growing demand for coastal living in Cape Town is shifting attention away from traditionally expensive areas like the Atlantic Seaboard, with Kalk Bay offering exceptional value in comparison.
“It used to be that the majority of buyers here were locals looking to move closer to the beach or retire. However, this is no longer the case,” Alexander and Giusti said.
“Kalk Bay has become very popular with upcountry buyers and has also started to attract the attention of foreign investors.”
“We’re currently marketing a R6.5 million home in which five foreign buyers are interested and we’re also starting to see this level of interest in St James and Fish Hoek.”

A significant drawcard in Kalk Bay is the wide variety of property options, from quaint cottages and quirky flats to oceanfront apartments and expansive hillside homes.
“Many of the older properties have been renovated in recent years, so there are some stunning homes in the area,” Alexander and Giusti said.
There are also a few secure developments in the area that are especially popular with upcountry buyers, but these homes tend to be in very short supply.
One such development catching the eye of foreign buyers is a three-bedroom villa in The Majestic, a well-maintained, secure complex in the heart of Kalk Bay.
Located close to the village’s shops and restaurants, the villa features ocean views from its bedrooms, along with access to a gym, pool, and spa.
“One of only four villas in the complex, it’s set back from the main road, so whilst it’s conveniently centrally located, it’s still very peaceful with ocean views from the bedrooms.”
The family-sized homes in Kalk Bay are also attracting attention, particularly those that were previously owned by retirees who downsized.
Many of these buyers are empty-nesters looking for a tranquil and high-quality ocean lifestyle, they explained.
The village’s proximity to good restaurants, tidal pools, and boutique shops makes it an attractive place to retire or simply enjoy a more relaxed pace of life.
For younger buyers, Kalk Bay’s smaller cottages and flats, often tucked away in cobbled streets near the main road, provide an excellent entry point into the market.
These properties are popular among those who want to be close to the eclectic boutiques, cafes, and restaurants that give the village its unique vibe.
Access to the beach, where residents can swim or surf, is another major draw.
Foreign buyers are also taking advantage of the strong rental market in the area, especially for holiday lets.
Holiday rentals are in high demand, which creates great opportunities for investors who can expect both strong long-term capital growth and excellent short-term returns.”
This demand has contributed to the area’s increasing popularity, making Kalk Bay not only a desirable place to live but also a lucrative investment option.
Kalk Bay’s unique character plays a significant role in its growing appeal. With its cobbled streets, trendy shops, and eclectic mix of cafes and restaurants, it has a European feel but with a distinctly local influence.
This blend of international flair and local charm contributes to the village’s broad demographic, making it a truly one-of-a-kind destination.
Alexander and Giusti said the area offers plenty of options for outdoor lovers, from oceanfront walks and water sports to hiking trails with panoramic views of the sea and mountains above Boyes Drive.
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