According to Property24’s latest market analysis, South Africa’s coastal towns are outperforming inland areas in 2025, driven by semigration, the rise of remote work, and lifestyle migration among retirees. While national property trends show mixed growth, coastal markets, particularly in the Western Cape remain the country’s most stable and sought-after investment regions. Quay 1 International Realty notes that Cape Town’s coastal suburbs, including the Atlantic Seaboard, Southern Suburbs, Bloubergstrand, and Milnerton, continue to demonstrate strong price resilience. Since 2020, sectional-title apartment prices in these areas have risen by more than 35%, while freestanding homes in Sea Point, Green Point, and Noordhoek regularly achieve record-breaking sale prices.
Antonie Goosen, founder of Meridian Realty, explains that this growth is structural rather than cyclical, with buyers increasingly prioritizing “lifestyle security”, a combination of good governance, infrastructure, and overall quality of life that coastal living offers. Around Cape Town, suburbs such as Somerset West and Strand have become family and investor favorites due to their accessibility, solid infrastructure, and strong rental demand from professionals and retirees alike.
Beyond the Cape, smaller towns like Hermanus and Gansbaai on the West Coast and Overberg are also experiencing steady appreciation, boosted by ongoing infrastructure upgrades. The Garden Route remains a consistent performer, with Mossel Bay, Dana Bay, Plettenberg Bay, and Knysna seeing sustained demand, especially for apartments and smaller homes with strong rental potential. In the Eastern Cape, Jeffreys Bay and St Francis Bay are transitioning from holiday destinations into full-time residential hubs, supported by better roads and connectivity. KwaZulu-Natal’s North Coast particularly Ballito, Salt Rock, and Sheffield Beach continues to attract semigration buyers and short-term rental investors, despite broader market challenges in the province.
Key Trends Shaping 2025's Coastal Market Include:
- Remote work and semigration: Allowing professionals to relocate permanently to lifestyle destinations.
- Early retirement migration: With buyers in their 50s investing now and renting out until relocation.
- Sustainability and resilience: With solar, inverter, and water systems boosting both comfort and resale value.
- Sectional-title growth: As smaller, lock-up-and-go properties prove popular for flexibility and affordability.
While the Western Cape remains the clear leader in governance and long-term returns, emerging markets across the Eastern Cape and KZN offer promising entry points, often below R2 million alongside higher rental yields that can exceed 10%, compared to the Cape’s average of around 6%.
The article outlines a simple investor playbook: choose municipalities with strong governance and service delivery; prioritize access to infrastructure and amenities over scenery alone; seek properties that can function as both rentals and future residences; invest in sustainability features to reduce costs and enhance value; and track upcoming infrastructure projects, as these typically signal future growth.
In closing, Goosen remarks that the coast’s enduring appeal is both emotional and financial: “People will always be drawn to the coast … in uncertain times, lifestyle and livability drive decisions.” Property24 concludes that coastal property in well-governed, infrastructure-rich towns remains one of South Africa’s most resilient and rewarding investment opportunities heading into 2025.
