In a Nutshell

Focus article: The South African coastal property market

The coastal property market performed exceptionally well in recent years, pushing property prices in many of these areas to levels well above of those in the metropolitan areas.
Apart from favourable economic and socio-economic factors having supported the market for coastal property, the limited supply of sea-view houses, flats and vacant stands, with demand continuing to rise at a brisk pace, have caused prices to escalate significantly.

Rising concerns about the environmental impact of further development of the country’s coastal areas will significantly limit the supply of new coastal property in years to come.
The demand for coastal property is expected to continue to outstrip supply, so property prices in these areas are forecast to rise further in the future, causing coastal property to become even more exclusive and less affordable.

In nominal terms, the average price of houses along the coast 80sqm – 700sqm increased by 341,1% in total (around 21% per annum) from R315 200 in the first quarter of 2000
to R1 390 400 in the third quarter of 2007.

In many fast-growing coastal regions, blocks of flats and luxury apartments have been built over the years to cater for increasing demand. This type of coastal properties has increased in popularity because of factors such as the increasing scarcity of development land with a good view, security and maintenance, and the concept of relaxed and hassle-free living (which favours so-called “lock up and go” properties with magnificent views.)

Various lifestyle estates have been developed along the coast in recent years. These estates provide for a certain lifestyle, providing well-developed open spaces, exclusivity, tranquility, strict access control and a high level of security. Many of these estates have been developed on prime land with magnificent, unobstructed views of the ocean and coastline.

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