Holiday home hotspots are booming. Where to buy and what you’ll pay?

Coastal property has continued to outpace house price growth at an average of 6.2% compared to just 4.2% for inland areas with some areas falling as low as 2%. According to agents from the Seeff Property Group, this is driven by the appeal of the coastal location (sea views, beaches, climate), and boosted by the sustained migration (especially retirees and remote workers) to coastal suburbs and towns, driving up demand and prices.

Buyers are willing to pay a premium for the perceived superior quality of life, better local governance and infrastructure (in key coastal regions), and tourism rental potential. Tourism SA, for example, recently reported a phenomenal 14% YoY growth in tourist arrivals for the first half of the year, and by September, had already exceeded pre-pandemic levels with 7.6 million visitors. This is a further demand boost for coastal property.

Most holiday areas are fully booked out for the summer period with visitors set to flock to the popular coastal hotspots. This is also usually the time when many start looking at investing in a holiday or retirement home, or an Airbnb on the coast. Sales data from Seeff shows that the Cape along with other coastal hotspots have enjoyed an excellent year with many areas seeing higher activity on the back of the significant interest rate cuts since mid-2024.

Seeff highlights some of the top hotspots, and what buyers and investors can expect to pay:

Clifton and Camps Bay on Cape Towns’ Atlantic Seaboard

The prime destination for wealthy local and international holiday buyers and an investment hotspot, says Ross Levin, licensee for Seeff Atlantic Seaboard. It’s been an outstanding year with Camps Bay sales topping R1.6b at an average price of R21m, and 30 sales over R20m (four over R50m). Clifton tops R630m from just over a dozen sales at an average price of R44m, most sales have been over R20m (two over R100m). The scenic location between mountain and sea, and white, blue-flag beaches and riviera lifestyle are top attractions for residents, holiday makers, and celebrities from all over the world.

Expect to pay: R18m-R48m for luxury beach apartments and villas.

Plettenberg Bay and Knysna on the Garden Route

Fabulous weather, blue flag beaches and great amenities make these areas popular for upper income holiday and retirement investments. These markets have boomed in recent years. Alet Ollemans, licensee for Seeff Plettenberg Bay says the market already tops R2.3b, up compared to last year, with a handful of sales over R20m.

Knysna’s also already tops R2.3b with about 22% of transactions over R5m (mostly in Thesen Islands, Brenton and Simola). Sedgefield remains a popular choice for its relative affordability.

Expect to pay: R2m-R15m (apartments from R2m, luxury houses up to R20m-plus).

Langebaan and Yzerfontein on the West Coast

Beautiful beaches, fynbos surroundings, and close proximity to Cape Town make these popular holiday and Airbnb investments. The areas have seen tremendous growth over the last few years, boosted by semigration and holiday buyers. According to Michelle Livingstone-Louw and Nelia Retief, agents for Seeff Yzerfontein, prices have basically doubled, and a number of new estates are under development. Some 7% of Langebaan sales now fall above R5m, especially in Calypso Beach, Paradise Beach the Langebaan Country Estate. Mykonos remains a top attraction with popular holiday apartments.

Expect to pay: R3m-R6m in Yzerfontein, R1.5m-R8m in Langebaan.

Betty’s Bay and Kleinmond on the Overstrand Coast

Under 90-minutes from Cape Town along the scenic Clarence Drive, these small coastal villages are located on the rocky coastline of the Kogelberg Biosphere Reserve with the Kogelberg Mountains as a backdrop. They offer excellent affordability, and close proximity to Hermanus, says Paul Kruger, Seeff’s licensee for the areas. Both towns feature beautiful, accessible sandy beaches and basic amenities with easy access to the attractions of Hermanus. Both areas have seen strong price growth in recent years.

Expect to pay: R1.8m-R4m in Betty’s Bay, R2m-R5m in Kleinmond  (exceeding R10m-R12m for beachfront homes).

Jeffreys Bay and St Francis Bay, surfing hotspots in the Eastern Cape

These Eastern Cape holiday resort towns are just over an hour from Gqeberha and renowned for water sport, surfing, and excellent amenities including golfing. Both feature popular waterside developments such as Marina Martinique in Jeffreys Bay, and The Canals in St Francis Bay, along with the St Francis Link Golf Estate. Both property markets have been very active with transactions still well ahead of pre-pandemic levels and excellent price growth of 38% in Jeffreys Bay, and 60% in St Francis Bay over 5-years.

Expect to pay: R1.5m-R3m in Jeffreys Bay. St Francis Bay at R2m-R6m on average, and R6m-R12m for exclusive waterside and golf estate homes.

Big Bay and Bloubergstrand, kitesurfing mecca of Cape Town

The top kitesurfing destination, attracting surfers from across the globe, these beach areas are popular with residents, retirees, holiday makers and foreign buyers, according to JP Ricketts, sales manager for Seeff. The beaches, restaurants and amenities are mostly within walking distance, adding to the excellent quality of life and holiday experience. Just about the whole beachfront through to Big Bay is a prime Airbnb market, offering strong returns during the summer months.

Expect to pay: R2m-R8m on average (apartments, townhouses, estates), R12m-R20m-plus for prime properties in Bloubergstrand Village and Water’s Edge (Big Bay).

Strand and Gordons Bay, affordable beach living

Set against the backdrop of the Hottentots Holland Mountains, Strand and Gordon’s Bay are popular for their relaxed living, warm ocean, sandy beaches, and a variety of water sports. Beach apartments and Greenways Golf Estate in Strand, and Harbour Island and Mountainside villas in Gordon’s Bay are popular choices for holiday investors. Alten Vermaak, Seeff licensee for the areas, says both towns remain relatively affordable compared to Cape Town, with Strand offering slightly lower price points.

Expect to pay: R1.5m-R4m for apartments (R5m-R15m for beach/waterfront and mountainside locations).

Muizenberg and Fish Hoek, surfing and a warm ocean on the False Bay coast

These are popular surfing hot spots on the warmer False Bay coast, and offer a laid-back coastal lifestyle with close proximity to restaurants, amenities and attractions. Aside from residential buyers, Anton Liebenberg, manager of Seeff False Bay says the area is popular with retirees and holiday investors. The market has been solid this year with transactions slightly ahead of last  year, especially in the R1.5m-R4.5m range. Apartments are a popular choice for holiday investments.

Expect to pay: R1.5m-R4.5m, with houses located higher up with stunning sea views achieving the highest prices.

Issued by Gina Meintjes