The Garden Route, a popular semigration hotspot in South Africa, is seeing a rise in international buyers, with many expats returning to the area.
Dr Andrew Golding, chief executive of the Pam Golding Property group, said that growth in building activity and residential property prices reflects a diverse spectrum of buyers which spans generations.
This includes semigrants, local residents, and buyers or investors from across South Africa and internationally.
The Garden Route in South Africa encompasses the areas of Heidelberg, Riversdale, Stilbaai, and Witsand along the coast to Mossel Bay, George, Wilderness, Sedgefield, Knysna, and Plettenberg Bay.
“This scenic region encompasses sweeping, unspoilt beaches, majestic mountain ranges, indigenous forests, rivers, and serene lagoons and lakes,” said Golding.
“Coupled with a temperate year-round climate, the Garden Route offers homes for virtually every market segment.”
Although it consistently appeals to those acquiring homes to retire in the near or distant future, it also attracts a mix of generations drawn to these destinations for a more balanced lifestyle.
Golding said that vacant plots and new homes in estates and complexes are experiencing consistently heightened demand.
The commercial hub of the region is George, which has its own airport, good schools, medical facilities, golf courses, beaches and restaurants.
Although almost half of recent buyers were over 50 years of age, about 18% of recent purchasers are young buyers, likely attracted by employment opportunities.
George and Mossel Bay
Pam Golding Properties area manager for George and nearby Mossel Bay, Stephen Murray, said that purchasers are from around the country.
Buyers include investors looking for lifestyle combined with sound capital growth and/or rental yields.
Popular lifestyle estates include Fancourt, Pinnacle Point, Gondwana Game Reserve, Oubaai and Kingswood Golf Estate, which have also attracted interest from buyers abroad.
George and Mossel Bay have also become vibrant residential and investment markets in the Western Cape, with several new properties developed.
As part of this, Murray said that market demand for residential developments has seen the launch of several new projects over the past year.
“Whether buying a primary or secondary home for leisure or pure investment, purchasers regularly comment on the scenic natural beauty, golden beaches and pristine surrounds,” said Murray.
Plett
One of the strongest Garden Route performers is Plettenberg Bay, which also has a buoyant residential property market, which Pam Golding said is well-priced relative to demand.
The agency said that there is massive activity in gated estates and new-build villages as they combine lifestyle, security and good rental prospects.
Sectional title apartments are also sought after, especially secure units close to beaches and amenities.
“The current demand lies in retirement villages, while semigration and holiday home buying have also been major drivers,” said Gordon Shutte, Pam Golding Properties area manager in Plett and Knysna.
“Sectional title and holiday-rental-friendly stock are growing in popularity, and there is continued appetite for premium estate homes and well-located sectional title units.”
There is also an increasing number of young families and professionals relocating for lifestyle and remote work, even as the dominant cohorts remain affluent retirees and holiday home buyers.
Due to its beaches, estates, tourism infrastructure and international reputation, Plett is becoming an appealing primary, secondary and retirement destination.
Knysna
Knysna has benefited from the semigration trend and retirement demand, with more enquiries, renewed building activity, renovations, and a handful of new developments or lifestyle complexes.
The area is also seeing rising interest in holiday-to-primary home conversions.
“Family homes for school and quality of life purposes also form a solid portion of sales, with a noticeable increase in a younger generation of purchasers,” said Shutte.
Sectional title apartments aimed at first-time buyers, holiday apartment purchasers and investors are selling from R1.2 million to R3 million.
Vacant land on the high-end Pezula Private Estate can also be acquired for around R1.005 million.
Sedgefield
Sedgefield is also seeing a large increase in building activity and residential market movement, particularly near Myoli Beach, reports James McNaughton, Pam Golding Properties area principal.
“Over the past five years, there’s been a dramatic increase in building activity and sustained semigration,” said James McNaughton, Pam Golding Properties area principal.
While the town has always been a popular holiday and retirement destination, the number of people coming to live and work there has increased exponentially.
Buyers generally prefer to build a modern home, while overseas buyers prefer a move-in-ready home in top condition.
The town is renowned for its relaxed lifestyle and a host of recreational activities, with beaches, rivers, lagoons, and forests nearby.
The area also caters for retirees with care homes and frail care living in a caring community.
Stilbaai and Witsand
Stilbaai and Witsand are also following the trend of increased sales and building activity in the residential property market.
Le Roux van der Merwe, Pam Golding Properties area principal, said that most of its buyers are from larger metros, including Cape Town, Johannesburg, Pretoria, and the Garden Route.
There are also many returning expatriates looking to settle in a safe, well-connected coastal town.
While the mix includes many retirees, there’s also been a shift from holiday homes to full-time living, with an increase in younger families and remote workers seeking a slower, better lifestyle.
“Coupled with this, a younger demographic is contributing to renewed energy in the market with growing demand for modern, family-oriented homes and lifestyle estates,” said Van der Merwe.
With its good infrastructure and pristine beaches, Van der Merwe said that Stilbaai presents an opportunity to acquire permanent coastal living without the hefty premiums of other resort towns.
Riversdale
The dominant purchase type in Riversdale appears to be family-sized homes and primary residences rather than purely investment holiday homes.
However, there is still a segment of purchasers seeking lifestyle or retirement homes, and the overall demographic is weighted towards middle-aged and mature purchasers.
For first-time buyers, the typical price range is approximately R600,000 to R1.2 million, which can buy a modest new-build townhouse or a small freehold house.
Given its affordable property prices compared to other Garden Route towns, Van Der Merwe said Riversdale is a compelling value-lifestyle market and a logical next-tier destination for semigration and lifestyle buyers.
Heidelberg
Heidelberg is underpinned by its local farming community. New entrants into the market include mature buyers and younger individuals, who have differing goals.
Mature buyers mainly look for smaller, low-maintenance, lock-up-and-go properties ideal for retirement or easy living.
Younger buyers tend to purchase larger family homes with more space and gardens, suitable for families and working from home.
Van der Merwe says there has been a clear increase in younger buyers entering the market in recent years, many of whom work remotely for international companies.
Remote work has become possible thanks to the growing availability of fibre internet in the town, making it an attractive option for young professionals and families in the area.
