Fromthe West Coast to the Winelands, South Africa’s secondary towns are emerging asproperty hotspots delivering value for money, lifestyle appeal and growinginvestment confidence.
Accordingto recent property data, house price growth in several secondary towns hasoutpaced that of major metros, with towns such as Paarl, George and Ballitorecording sustained demand driven by lifestyle migration and remote workflexibility, says Bradd Bendall, National Head of Sales for BetterBond.“Secondary towns typically refer to well-developed regional centres outsidemajor metropolitan areas that offer established infrastructure, employmentopportunities and a desirable lifestyle offering.”
Affordability
Theexcellent value offered by homes in secondary towns is one of the main reasonsbuyers are looking beyond the traditional metros. It is often possible to buylarger erfs in smaller towns, making them ideal options for multigenerationalliving as they can easily accommodate extra rooms or cottages. “This is animportant consideration for families looking to share the costs and enjoy thebenefits of living with family.”
Manyof these towns offer opportunities to invest in a well-sized home or propertywithin an estate in sought-after areas such as George along the Garden Route,Paarl in the Cape Winelands and the Underberg in KwaZulu-Natal. For a similarinvestment, buyers would likely only be able to secure a smaller home orapartment in a major city. “Affordability, combined with the appeal of aquieter lifestyle, makes these smaller towns particularly attractive to youngfamilies,” says Bendall.
Inmany cases, smaller towns also benefit from well-run municipalities and morereliable service delivery. The West Coast District Municipality, for example,was recently named the country’s best-run municipality by Ratings Afrika’sMunicipal Financial Sustainability Index (MFSI), with Saldanha Bay andSwartland ranked among the top-performing local municipalities. This level ofgovernance is helping to drive buyer confidence in these regions.
Accordingto Cape Coastal Homes, the West Coast has experienced a significant surge inbuying activity, with transaction volumes increasing by nearly 96% year onyear. Located just an hour’s drive from Cape Town, many of these coastal townsoffer a compelling combination of affordability and natural beauty. “Withtensions in the Middle East affecting oil prices, rising fuel costs may be aconcern for those needing to commute to larger towns for business. While thereis no clarity on how long this shock will be a factor, it does make for astrong argument to revert to remote working as a viable alternative whiletensions continue. In this way, it will still be possible to prioritiselifestyle choices when buying property,” says Bendall.
Severalindividual towns are showing strong price and transaction growth. LOOM has alsoidentified the West Coast as one of the country’s fastest-growing regions, withthe town of Laaiplek recording growth of 31%, driven by affordability, coastallifestyle appeal and accessibility. Situated west of Langebaan, Laaiplek offersstrong value for money while retaining the same coastal appeal as itsbetter-known neighbours.
Whilethe median house price in the sought-after Calypso Beach Private Estate inSaldanha Bay is around R3.28 million, more than half the homes sold recentlywere priced between R5 and R10 million, reflecting this area’s appeal forhigher-end buyers seeking a premium lifestyle on the water’s edge, according toBetterBond data for the past 12 months. Application data also points tosignificant buyer activity in St Helena’s Britannia Beach Estate. Withproperties within walking distance of the beach, this estate is well suited toboth permanent residents and investors seeking buy-to-let opportunities.
Economicbuffer during uncertain times
Amidglobal uncertainty and rising fuel costs, secondary towns could also provideeconomic buffers for those who are able to work fully remotely, says Bendall.“Relocating to functional, regional centres that offer many of the samefacilities and opportunities as larger cities could make financial sense, asmost of these towns offer a “15-minute lifestyle” with essentialamenities within a 5km radius.” The relative affordability of property insecondary towns also provides some financial relief for households facingfuel-driven cost increases.
Remoteworking
Asremote and hybrid working models have become more widely accepted, many buyersare no longer tied to living close to major economic hubs. This shift hasenabled greater flexibility in choosing where to live. Known post-pandemic as‘Zoom towns’, these locations combine affordability and hybrid-workingconvenience.
“Overthe past few years, the different approach to working has made it easier toturn a holiday home into a permanent residence,” says Bendall. “We are stillseeing people moving away from city centres to smaller towns such asRiebeek-Kasteel and Malmesbury in the Swartland. With ongoing tensions in theMiddle East driving up fuel prices, those who can work fully remotely willbenefit from living in smaller towns where amenities are often within closeproximity, Bendall adds. “One of the drawcards of these secondary towns is thatshops, schools and medical facilities are often within walking distance. Thisis helpful during these uncertain times when oil and fuel prices have an impacton household costs.”
Riebeek-Kasteeloffers a distinctive lifestyle appeal bolstered by agri-tourism. Median houseprices in this quaint town, known for its artisanal shops, wineries, vineyardsand strong sense of community, have steadily appreciated in the past fiveyears. Larger homes, once listed for R1.95 million, now sell for around R3.5 toR4 million, and often to buyers coming from Cape Town or Gauteng, notesBendall.
Malmesbury,located close to the N7, provides a slower-paced, rural environment while stillallowing for a manageable commute to Cape Town when required and easy access tothe West Coast. BetterBond’s application data for the past 12 months shows thatthere have been over 400 property transactions in this town, with the medianhouse price at R1.66 million.
Althoughprices are comparatively higher in Yzerfontein, at an average of around R3million, this coastal village has also seen an uptick in market activity.BetterBond’s data records 122 transactions in the past 12 months. It has beenreported that property values have more than tripled here in the past decade,underscoring the increased interest in coastal living.
Innearby Darling, loved for its annual wildflower display and tranquil lifestyle,more than two-thirds of properties sold have been between R1.5 and R3 million,according to BetterBond’s data.
Lifestyleoffering
Beyondaffordability, quality-of-life considerations are playing an increasinglyimportant role in buying decisions. Several towns in the Cape Winelands haveevolved into sought-after lifestyle destinations, attracting buyers from CapeTown and Gauteng, as well as returning expatriates. These include Franschhoek,Paarl, Robertson and Montagu, extending northwards towards the Koue Bokkeveldand the Tankwa Karoo National Park.
TheCape Winelands region, just an hour’s drive from Cape Town, offers vineyards,mountain vistas and world-class wine culture. Popular destinations such asStellenbosch and Franschhoek combine a country lifestyle with luxury amenities.These towns offer excellent educational institutions, professionalopportunities – Stellenbosch is known as one of the country’s fastest-growingdigital and innovation hubs – and recreational activities such as mountainbiking and premier restaurants.
InKwaZulu-Natal, the iLembe District has recorded some of the highest growthrates for new properties, according to property intelligence. This regionincludes Ballito, which has seen growth of 17%, and Salt Rock at 20%. Manybuyers are relocating from other parts of Durban to secure homes in estates andnew developments in these areas, drawn by their coastal setting and proximityto King Shaka International Airport.
Alongthe Garden Route, George has become a drawcard for families and retireeswanting to make the most of its natural beauty without missing out on modernamenities. It offers excellent schools, a range of retail and economicopportunities, world-class healthcare facilities and easy access, thanks to itsregional airport. The popularity of this region as a holiday or conferencedestination means there is also strong rental demand, notes Bendall.
Infrastructureand growth
Beyondlifestyle appeal, investment in infrastructure is also contributing to thegrowth of secondary towns. In Limpopo, for example, development in Polokwanehas supported increased demand for residential property in this keyagricultural and administrative hub. LOOM reports that the Capricorn DistrictMunicipality, one of five municipal districts in the province, has recordedgrowth of around 9%, underlining the role of infrastructure and regionaldevelopment in shaping property trends.
Lookingahead
Aslifestyle priorities evolve and remote working opportunities continues toinfluence where South Africans choose to live, secondary towns are expected toremain firmly on buyers’ radars, concludes Bendall. “These areas increasinglypresent compelling opportunities, combining relative affordability with stronglifestyle appeal and long-term growth potential.”
