Three towns in South Africa where rich people buy holiday homes
Three areas in the Cape Town region, Clifton, Camps Bay, and Hout Bay, top the list of coastal towns attracting wealthy buyers in South Africa.
Seeff Property Group said coastal property remains in high demand for holiday homes and Airbnb investments.
Recent Lightstone data has also confirmed that coastal towns have mostly outpaced the metros in transactions over the last year.
Buyers have also spent, on average, about 25% more on coastal property compared to the metros.
Seeff Property Group chairman Samuel Seeff said that with over 48 Blue Flag beaches and marinas, a great climate, and access to good amenities, holiday towns tend to attract buyers from all over.
He added that international buyers also find excellent value in prices compared to overseas holiday destinations.
Locations like Plettenberg Bay Hermanus, Gansbaai, Langebaan, and St Helena in the Cape have been some of the best performers.
While not in the top ten, some Eastern Cape hotspots, and Margate, Salt Rock, and Umhlanga in KwaZulu-Natal also cracked a spot in the top 30.
Seeff said the migration of wealth to the coastal areas is part of a broader trend.
New World Wealth data shows hot spots attracting wealthier buyers include Clifton, Camps Bay, False Bay, Hermanus, Langebaan, and Garden Route towns like Plettenberg Bay.
Earlier this year, Pam Golding Property Group CEO Andrew Golding said South Africa’s luxury property market is booming, with significant stock shortages building pricing pressure.
He said the outlook for South Africa’s housing market is looking increasingly optimistic. Several positive indicators are evident, and early signs of sustainable growth in house prices and market activity are already starting to emerge.
“While the Western Cape remains the standout performer, we have also already seen increasing activity and interest this year and during recent months in various other key metropolitan hubs and sought-after nodes around the country across all sectors,” Golding said.
In particular, Golding pointed to an uptick in South Africa’s luxury property market, which he said has seen remarkable strength and a significant reduction in stock levels.
“Confidence has returned to the property market in this segment as it is driven by positive sentiment in respect of the improved financial conditions, local stock markets and stable government,” he said.
Top 10 coastal towns in South Africa
Seeff provided an overview of the top 10 coastal towns in South Africa.
Clifton and Camps Bay
Seeff Atlantic Seaboard licensee Ross Levin said these towns have seen some of the highest prices paid this year, mostly over R20 million per transaction.
He said the location, lifestyle and Blue Flag beaches attract buyers from across the globe.
However, he warned that prices are at a premium. Buyers can expect to pay upwards of R10 million, with houses upwards of R20 million.
Hout Bay and Llandudno
Located on one of the most scenic routes in the world popular with cyclists, Llandudno has seen a notable rise in sales over R20 million over the last few years.
In addition, Hout Bay buyers are increasingly paying more for homes, leading to capital value increases and a hot rental market, said Seeff Hout Bay manager Stephan Cross.
Muizenberg and Fish Hoek
Seeff False Bay licensee James Lewis said these are surfing hotspots on the warmer False Bay coast, and the area offers excellent value apartments under R2 million.
“Great amenities, schools and a beach lifestyle make these top choices for holidaymakers and property buyers, local and international buyers alike,” he said.
Strand and Gordons Bay
Seeff licensee Alten Vermaak said these areas made the list because they are scenic waterfront areas combined with good value, “and you can still buy below R1.5 million in Strand with beach apartments in the R1.5 million to R3.5 million range”.
He added that Gordon’s Bay is superb for luxury buyers but offers plenty in the R2 million to R3 million range.
Kleinmond and Betty’s Bay
Only about 90 minutes from Cape Town and close to Hermanus, these towns offer great value for money, said licensee for Seeff Overstrand, Jacques Retief.
“A laid-back lifestyle and pristine coastline and prices from just R1.8 million make the area a popular choice for holiday homes,” he said.
South Africa’s top coastal towns
Below are South Africa’s top coastal towns, according to Seeff Property Group.
| Town | Current Transaction Volume | % Change over 5 Years | Average Price for Full Title Property |
|---|---|---|---|
| Clifton | 26 | +62.5% | R27 million |
| Camps Bay | 85 | +77% | R17 million |
| Hout Bay | 361 | +71% | R5.5 million |
| Llandudno | 12 | +40% | R33 million |
| Muizenberg | 187 | +17% | R2.9 million |
| Fish Hoek | 213 | +29.09% | R2.9 million |
| Strand | 1217 | +5.36% | R1.75 million |
| Gordons Bay | 421 | -1.6% | R2.6 million |
| Kleinmond | 198 | -3.88% | R2.2 million |
| Betty’s Bay | 136 | -19% | R2.2 million |
| Hermanus | 864 | +9.9% | R3.6 million |
| Gansbaai | 156 | +26.8% | R2 million |
| Langebaan | 604 | +9% | R3.1 million |
| St Helena Bay | 606 | +6% | R1.5 million |
| Struisbaai | 147 | -26.5% | R2.5 million |
| Witsand | 58 | +7.4% | R2.7 million |
| Plettenberg Bay | 444 | +1% | R3 million |
| Mossel Bay | 1166 | +22.6% | R2 million |
| Jeffreys Bay | 834 | +1% | R1.8 million |
| St Francis Bay | 328 | +25% | R4.2 million |
| Umhlanga | 917 | -1% | R4.4 million |
| La Lucia | 70 | +7% | R4.7 million |
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