One area where house prices increased by over R4 million in 5 years

Upgrades to the City of Cape Town are significantly impacting demand and further boosting property in the area, attracting local and international buyers.

According to Seeff Property Group, Cape Town is investing significantly in upgrading and refurbishing the Muizenberg beachfront area. This includes improvements to the promenade, parking, Surfer’s Corner, and heritage structures.

Anton Liebenberg of Seeff False Bay said these will attract more tourists and increase the area’s desirability for residential and investment buyers.

The area has experienced tremendous growth in sales and prices during the pandemic years, attracting a mix of residential and investment buyers, including Airbnb investors.

New developments have also been popping up across the area. From 2020 to 2025, the prices of areas in False Bay increased from 20% to as much as 150%.

In Kalk Bay, Sectional Titles went from an average price of R2 million in 2020 to R5 million in 2025, a 150% increase. Freehold titles shot up by over R4 million during the period, going from R4.9 million in 2020 to R9 million in 2025.

The False Bay area is a popular weekend and holiday getaway. The train from Claremont to Kalk Bay is a key tourist attraction, as is the coastal drive that snakes around the peninsula to Cape Point.

Other popular landmarks include Surfers Corner in Muizenberg, the colourful beach huts of St James Beach, and the penguins of Boulders Beach in Simons Town.

The beaches in these areas are a major drawcard, especially since both Muizenberg and Fish Hoek proudly hold Blue Flag status, an international recognition awarded for cleanliness, safety, and excellent facilities.

Residents are drawn to the laid-back coastal lifestyle and scenic location, with the fynbos-covered mountains as a backdrop and a warmer sea popular for swimming, surfing, and paddling.

Liebenberg said the market has been good for sellers, with properties selling quite fast as demand remains high, so much so that there is a shortage of properties for sale.

He added that there is a waiting list of buyers wanting to relocate to the False Bay area, but sellers are seemingly holding onto their homes.

Property owners tend to stay for a long time, and most sellers only move for necessity, such as downsizing due to empty nesting or relocating to retirement facilities.

However, buyers tend to be a mix, from young to old. These include families looking for a healthy lifestyle or people moving from the Southern Suburbs to be closer to the sea.

Investment Appeal

According to Lightstone data, there has also been a notable uptick in international buyers, often because they have been exposed to the area as tourists and tend to stick to tourist areas such as Kalk Bay, St James, and Simonstown.

Liebenberg said that the area offers the perfect mix of an ideal seaside location and excellent value. While some areas are becoming more expensive, he said you can still find good value in Muizenberg, Fish Hoek, and Simons Town.

Apartments are popular, often for holiday purposes or as Airbnb investments. These are priced upwards of R1.5 million, according to Seeff.

Houses tend to be priced upwards of around R2 million but can go as high as R17 million for a luxury home with stunning views in Fish Hoek.

False Bay is also very popular for rentals, often driven by school access and leisure attractions. Muizenberg is hugely popular with surfers looking for rental accommodation.

Average rental rates are around R12,000 to R23,000 monthly, but luxury homes and sea-view properties can exceed this.

Tracey Reid-Daly, licensee for Seeff Southern Peninsula, which covers Kommetjie, Noordhoek, Chapmans Peak and Scarborough, said these areas have also seen a notable uptick in demand and prices since the pandemic.

Aside from locals moving here, there is also an influx of semigration buyers, as well as international buyers who fall in love with the area.

Noordhoek, for example, now boasts an average price of around R9 million, with most sales over R3 million, according to Lightstone data.

It is particularly scenic and renowned for its 8 km Long Beach, one of the longest and widest in the Peninsula, where horse riding is a popular sight. Most buyers tend to be in the 35-60 age group.

The average price for Kommetjie is around R6.3 million, with most sales over R3 million, according to the Lightstone data.

At 61%, most buyers are under 50 years old. The area’s key drawcards are the scenic fynbos and mountain views, clean air, and laid-back lifestyle.