South African coastal town sees property prices double in just five years

Property prices in a South African coastal hotspot have doubled over the past five years, with the average home now selling for nearly R5 million—well above the national trend.

BusinessTech reports that semigration, especially during and after the Covid-19 pandemic, has driven demand for second homes and retirement properties, pushing prices higher.

This increase has made the area one of the country’s priciest markets, second only to Cape Town’s Atlantic Seaboard.

Property prices surge in Garden Route town

The seaside town at the center of this trend is Plettenberg Bay, where prices have risen sharply across all property types, including family homes, luxury estates, and sectional titles.

Property experts told BusinessTech that the increase has been extraordinary.

“The growth has significantly outpaced the national average,” noted a Seeff’s licensee.

Average house prices in Plettenberg Bay range from R3.5 million to R8.5 million, while high-end properties sell between R5 million and R15 million, with the priciest reaching R78 million. Sectional titles cost between R1.8 million and R3.8 million, with new units starting around R6 million.

The town’s appeal is obvious: a warm climate, oceanfront living, easy access from major hubs, and a relaxed lifestyle, making it ideal for holidays or permanent relocation.

However, Hayley Ivins-Downes from Lightstone Property cautions that the rapid price surge has made Plettenberg Bay unaffordable for many South Africans, turning this once laid-back town into a playground mainly for the wealthy.