Coastal boom: Eastern Cape property market outpaces inland growth
From Gqeberha to Jeffreys Bay, St Francis Bay, and Port Alfred, the region is emerging as a hotspot for semigration, attracting first-time buyers, retirees, and families alike.
Coastal demand outpaces inland growth
Coastal sales and rental prices continue rising faster compared to inland areas, especially along the Western and Eastern Cape. Samuel Seeff, chairman of the Seeff Property Group, attributes this to a "flight to quality," both in terms of lifestyle and property values.
FNB and Lightstone report coastal price growth averaging 5%, with the Western Cape surging at 8.7% while Johannesburg lagged at 1.8%. Coastal rental markets also show resilience, with the Eastern Cape achieving 5.7% growth by mid-2025, outpacing inflation. While the Western Cape maintains the lowest vacancy rates nationally, the Eastern Cape remains a strong contender for value.
The Eastern Cape’s average price is R1.15m, significantly lower than the Western Cape (R2.1m), KZN (R1.65m), and Gauteng (R1.4m). Consequently, first-time buyers comprise 47% of the province's market, nearly matching Gauteng’s 48.5% and far exceeding the Western Cape’s 36.3% share, highlighting the region's exceptional accessibility for new homeowners.
It also boasts rental affordability at an average of just R7,608, considerably lower than the Western Cape (R11,635), Gauteng (R9,201), and KZN (R9,170).
Hotspots and semigration driving growth
The good value for money and great coastal lifestyle have been a main driver of the sales and rentals markets of the Eastern Cape coast, with Gqeberha, Jeffreys Bay, St Francis Bay, Kenton on Sea and Port Alfred emerging as growth hotspots, attracting increasing semigration.
Alan Phillips, regional manager for Seeff Eastern Cape, says buyers and tenants are turning to the region as an affordable alternative, yet offering the same great lifestyle and access to good amenities.
The Eastern Cape offers some of the best weather with plenty of sunshine for healthy living. Top-class beaches, many of which have Blue Flag status, good schools and tertiary education, including Nelson Mandela University, mean you will want for very little, he says. In Gqeberha, prices are generally in the R960,000 to R2m range, while luxury homes sell mostly in the R3m to R7m at the top end.
Smaller coastal towns such as Jeffreys Bay and St Francis Bay have become popular with semigration and older buyers, benefiting from proximity to Gqeberha, a quieter lifestyle offering, and great beaches and water-based activities.
Desiree Ferreira, licensee for Seeff St Francis Bay, says the sustained inward migration and population growth have led to new restaurants, shops, and even medical facilities, further enhancing the appeal of permanent residency. Lightstone data shows transactions were up YoY in 2025 with notable price growth over the last five years.
The area is scenic and a tourist hotspot. Estates such as St Francis Links (golf estate), iconic canal properties, and the traditional "Village" area, with its distinctive black and white aesthetics and proximity to amenities, maintain strong appeal for buyers and investors.
Prices range from around R3m to R5.3m on average, with Canal properties at the higher end from R7m to R20m. Vacant land remains popular, especially sea view plots in the R800,000 to R2m range.
Jeffreys Bay is a top choice for those who don’t want to live in a city. The coastal appeal is a big draw, according to Michelle Harris and Desiree Ferreira, Seeff licensees for the area.
Transactions were also up year-on-year with the market particularly active in the R1.5m to R2.5m range, but top-end prices reached R8.51m in Marina Martinique, and R11.58m in Wavecrest for luxury homes.
Buyers can find good value in Aston Bay, C Place and Paradise Beach with townhouses from R1 million, and small houses from R1.2m. Wavecrest, Noorsekloof and Marina Martinique are great for families, priced from R1.3m to R1.5m for a townhouse, and R1.4m to R2m for a house.
Rentals are popular, especially in the R5,000 to R8,000 range, but short on stock as most rentals are in the R8,000 to R15,000 range with options of long or short term, and furnished or unfurnished available.
Port Alfred and Kenton on Sea, about midway between Gqeberha (Port Elizabeth) and East London for access to city amenities, are also capitalising on the semigration trend, says Chase Reynolds, Seeff’s licensee for the area.
Buyers who traditionally looked at the Western Cape or KZN are now focusing on Port Alfred and Kenton for a quieter lifestyle, and much better value for money. With remote work, people can now live and work in a safe, scenic coastal town without sacrificing their careers. He says it’s a solid investment in both capital growth and quality of life.