Ten holiday home hotspots to invest in this summer in South Africa

Summer season is here, and for some, it is time to go holiday home shopping. With a coastline of over 3,000 kilometres dotted with cities, towns and villages and over 50 Blue Flag beaches and marinas, there is plenty to choose from, according to property practitioners from the Seeff Property Group.

There has been a notable uptick in holiday home sales over the last two years, and according to Samuel Seeff, chairman of the Seeff Property Group, coastal towns have been among the best-performing areas, especially those along the Cape Coast, but also the KZN South Coast.

In some coastal areas, second home purchases account for about 15% of sales since mid-2020. Lightstone data comparison between 2021 and 2019 shows that many holiday towns experienced a notable increase in transaction volumes, and some are still ahead compared to the pre-pandemic year.

State of the market

Lightstone data also shows that price growth for 2021 was higher in the coastal areas compared to the rest of the country, with a growth of 6.1% on the coast compared to 4.9% in the inland areas.

Seeff says holiday homes are versatile investments. The coastal areas have buoyant rental markets, including Airbnb, which means you can rent it out when not using it for your own purposes. It can be an excellent investment for the family to enjoy and can later become your retirement home, as is often the case.

Top holiday home markets

Despite the rally on the market, Seeff says prices continue to hold up well, and there is still some good stock available. Seeff’s pick of the ten top holiday hotspots for this summer include:

1. Hermanus/Gansbaai (Whale Coast)

Home to the best land-based whale watching in the world with its own wine valley and fabulous beaches, Paul Kruger, licensee for Seeff Hermanus, says it’s still a great time to invest in a retirement or holiday home in this market. Prices range from R1.2 million to R2 million for houses.

Daniel Stemmet from Seeff Gansbaai says the village is very affordable and priced about 50% lower compared to nearby Hermanus. That means you can get a great deal on a holiday home. Plots with no sea views are available from R300,000 to R600,000, and beachfront stands from R1.8 million, and there is a huge uptick in building. Stats show that 80% of clients are from Gauteng and KwaZulu-Natal.

2. Mossel Bay/Dana Bay (Garden Route)

Picturesque with the landmark Cape St Blaize Lighthouse, Mossel Bay was named a Kwêla Town of the Year and is one of the fastest growing. It boasts five Blue Flag beaches. Herman Spies, sales manager for Seeff, says it is geared towards holidaymakers with fabulous facilities for families. Great areas to invest in include Dana Bay at an average price of R1.7 million, Diaz Beach at R1.9 million, Island View at R1.8 million, and Reebok at R1.8 million.

3. Langebaan/Paternoster (West Coast)

Only 90 minutes from Cape Town, Langebaan is accessible and picturesque with its white-washed architecture, scenic yacht club and Mykonos development. It has boomed over the last two years. Jaco and Tracey-lee Coetzee from Seeff Langebaan say that, aside from holidays and retirement, more buyers are settling there permanently. Great areas to invest in include Blue Lagoon at around R3.2 million on average, Langebaan Country Estate at R3.8 million and Laguna Sands at R2.5 million.

4. Noordhoek/Kommetjie (Cape Town Deep South/Southern Peninsula)

Its characteristic unspoilt Long Beach stretches over 8km from Noordhoek to Kommetjie and is popular for horse riding. Deon Labuschagne from Seeff Noordhoek says there has been an influx of local and foreign holidaymakers and buyers. Although the area is priced higher, with homes often selling in the R5 million to R10 million range, there is still good value below that in some areas and in nearby Fish Hoek. Kommetjie tends to sell for around R3.5 million to R5 million on average.

5. Kleinmond/Betty’s Bay (Overstrand)

These villages are just under 90 minutes from Cape Town and are great for weekend getaways. They attract holiday and retirement buyers and still offer excellent affordability. You can still find property from around R1.7 million in Kleinmond, according to Mike Tribelhorn, an agent with Seeff. Both towns offer a wonderful climate and laid-back lifestyle with basic necessities on hand. They are close to Hermanus as well.

6. Struisbaai/Agulhas (Agulhas Region)

With a beautiful Blue Flag beach, everybody wants to find a house in Struisbaai, according to Richard Pratt, manager for Seeff, who says that aside from holiday and retirement buyers, they are seeing more semigration buyers, and lots of new development is taking place. There is still some affordability away from the beach with vacant stands available from R650,000, but houses are scarce below R2 million. The average seafront stand starts from R3.5 million, and seafront houses start from R7.5 million.

7. Jeffreys Bay/St Francis Bay (Eastern Cape)

The towns are home to Blue Flag beaches, including Marina Martinique, with Jeffrey’s Bay being one of the top surfing destinations with the best right-hand point break in the world. Holiday flats are available from around R800,000 and houses from around R1.8 million. St Francis Bay offers fabulous waterfront and golf estate homes for luxury buyers, generally in the R2 million to R8 million range.

8. Kenton on Sea/Port Alfred (Eastern Cape)

Simon Oliver, Seeff’s licensee, says demand for property in Kenton, Port Alfred, Boesmansriviermond, Boknesstrand and Cannon Rocks has remained strong. The ability to work remotely has boosted sales, and many people are converting their holiday homes into permanent homes, especially in Port Alfred, which offers excellent value. Homes in the R1.5 million to R2 million range are scarce, but you can find good value in the R3 million range in Port Alfred. Vacant land to build on is popular in Kenton and Boesmansriviermond. There is also a choice of retirement developments in the area.

9. Margate/Shelley Beach (KZN South Coast)

Michelle Harris, Seeff’s licensee, says the South Coast has boomed over the last two years as buyers flocked there for good value. Great weather, good amenities and a choice of small towns dot the KZN South Coast.

The great value is well illustrated considering that the average property prices for Shelly Beach, St Michaels on Sea and Uvongo are still around R700,000 to R900,000, and you can find a nice top-class home for around R1.6 million. In Scottburgh and Pennington, the average house price is around R1.2 million to R1.8 million.

10. Stilbaai/Witsand (Cape South Coast)

Under four hours drive from Cape Town and with fabulous Blue Flag beaches, these towns are popular for whale watching, surfing, fishing, and general water sports. Marlize Taylor, an agent with Seeff Stilbaai, says the town is not only for holidays but also for retirement and permanent living. More younger people with children are moving to this destination, and more buyers are coming from Gauteng as well.

There is plenty of vacant land in the R700,000 to R1.6 million range (for a distant sea view) if you would like to build your own home. Houses range from around R2 million. Wetland offers apartments from R1.9 million and houses from R2.1 million.

From the above, it’s clear that South Africa has diverse markets to consider for a holiday home.

Writer: Gina Meintjes