Why Lesser-Known Coastal Towns Are Gaining Popularity

In recent years, towns like St. Francis Bay, Kleinbaai, Paternoster, Jongensfontein, and Hermanus have seen an increase in interest from both tourists and property investors. These towns offer a more relaxed and affordable alternative to the hustle and bustle of larger, more commercialised cities.

St. Francis Bay is a prime example of a town that has quietly grown in popularity. Known for its beautiful canals and peaceful atmosphere, it has become a sought-after destination for holidaymakers and property buyers. The town’s appeal lies in its natural beauty, opportunities for outdoor activities such as surfing and fishing, and a relatively peaceful environment compared to more crowded beach destinations.

Paternoster, a small fishing village on the West Coast, has transformed into a charming seaside destination. With its pristine beaches and quaint cottages, Paternoster offers a tranquil escape. The town’s affordability compared to Cape Town and its proximity to the West Coast National Park have made it an attractive spot for those looking for a coastal getaway. As property prices in the area rise, many investors see it as an opportunity to purchase holiday homes or rental properties.

Kleinbaai, located near Gansbaai, is another hidden gem gaining attention. This small coastal village is known for its proximity to the famous shark cage diving and whale-watching spots, attracting tourists seeking adventure and eco-tourism experiences. The town’s quiet environment and scenic views make it appealing for those looking to invest in a peaceful seaside location.

Jongensfontein is a lesser-known town in the Western Cape that has started to attract those looking for a slower-paced life. Its tranquil beaches and proximity to the Garden Route make it a perfect getaway for those wanting to escape the busier tourist towns. The town’s affordability and relaxed vibe are key reasons why it is becoming more popular.

Hermanus, though not entirely off the radar, is still an emerging investment hub. Known for its whale watching and rugged coastline, Hermanus has experienced a surge in demand for property. Its proximity to Cape Town and growing reputation as a haven for eco-tourism have added to its appeal.

The Risks of Overinvestment

While these lesser-known towns present great investment opportunities, there are risks involved. As their popularity increases, so do property prices. In towns like St. Francis Bay and Paternoster, property values have already risen significantly, making it harder for local residents to afford homes.

The fear of overpricing is real in these areas. As more investors and holidaymakers flock to these towns, the cost of living and property prices continue to climb. This could lead to gentrification, where the original community is displaced by wealthier outsiders. In some cases, this could change the character of the town entirely, turning it into a more tourist-driven market rather than a community-focused one.

Another potential risk is the strain on infrastructure. Smaller towns may struggle to cope with rapid development and an influx of people. Essential services like healthcare, waste management, and public transport could be overwhelmed. This could negatively affect both residents and visitors if the infrastructure doesn’t keep up with the pace of growth.

The Impact of Overdevelopment on Small Coastal Towns

The rapid rise of property investment in these towns can lead to unintended consequences. The local charm and peaceful atmosphere that initially attracted investors can begin to erode if the town becomes overdeveloped. Places like Paternoster have already seen property prices rise, which is pushing locals out and making the area unaffordable for many. This can cause significant shifts in the town’s identity and culture. What was once a quiet, picturesque village may transform into a more commercialised and crowded tourist destination, potentially leading to overcrowding, increased traffic, and environmental degradation.

In extreme cases, towns that once relied on their local community and environment for their appeal may lose those qualities. Small, family-owned businesses could be replaced by large-scale tourism operations, and the local character that made the town unique could be lost.

Property Prices and Affordability

Although property prices in these towns are still more affordable than in well-known cities like Cape Town, the increase in demand is causing prices to rise steadily. For example, in St. Francis Bay, a property that may have cost around R2.5 million a few years ago is now priced closer to R4 million. This price increase is a result of more people looking to invest in the area as it gains popularity.

Similarly, in Paternoster, a typical seaside property that once sold for R1.8 million can now fetch R3 million or more. With limited land available for development and growing demand, property prices in these towns are likely to continue increasing. As a result, potential investors need to be mindful that the window of opportunity for affordable investment might close soon.

What Investors Should Consider

Investing in lesser-known coastal towns in South Africa presents a unique opportunity to get in on the ground floor before these areas become too expensive. However, investors must proceed with caution. While these towns offer attractive potential for growth, the risks of overdevelopment, gentrification, and strained infrastructure cannot be ignored.

It’s important for investors to take a long-term view, considering how sustainable growth can be achieved while still preserving the local character of the town. Sustainable development should be a priority, ensuring that growth doesn’t come at the expense of the environment or the local community.

Investors should also be mindful of the rising property prices and affordability issues. What was once an affordable investment opportunity may soon become out of reach for both locals and potential buyers. By balancing the desire for profit with the preservation of what makes these towns unique, investors can help shape the future of South Africa’s lesser-known coastal towns while ensuring they remain desirable places to live and visit.