Could Eastern Cape’s small towns be the next property hotspots? Across the Karoo and Sunshine Coast, semigration, retirement and remote working are fuelling demand as buyers seek affordable property and a more relaxed lifestyle.
Source: Supplied. Graaff-Reinet, Drostdy Hotel.
Seeff Country says towns benefiting from agriculture, tourism, good infrastructure, schools and access to regional centres are attracting both homeowners and investors. With strong rental prospects, limited stock and growing interest from young families and entrepreneurs, these markets are gaining momentum while offering buyers value, lifestyle appeal and potential capital growth.
Karoo towns of the Eastern Cape – Graaff-Reinet and Steytlerville: Graaff-Reinet, one of the Eastern Cape’s most iconic Karoo towns, continues to attract strong buyer interest for its value, lifestyle appeal and investment potential, says licensee Jaco Badenhorst.
Demand has accelerated among investors, semigration buyers, retirees and remote-working professionals drawn by the town’s stability, heritage character, municipal management and quality of life, with prices showing little sign of slowing. Over the past 12 months, the market recorded R145m in residential and commercial property sales, with Seeff Country facilitating 52% of transactions.
Activity has been strongest in the R1.2m to R2m price bracket, where homes remain affordable compared with other lifestyle destinations and offer rental-income potential. Tourism growth, together with demand for long- and short-term accommodation, continues to support healthy owner returns.
It is the oldest town in the Eastern Cape and known birthplace of the Rupert family with its appeal increasingly linked to its well-managed environment, architecture, community and Karoo lifestyle. Investment by the Rupert family and other high-net-worth individuals has reinforced confidence in its long-term prospects.
Limited stock and sustained demand have created a competitive market, especially for well-maintained Karoo homes with historic character and modern upgrades, creating strong opportunities for sellers, investors and lifestyle buyers seeking value, stability and growth.
Steytlerville represents a potentially compelling growth opportunity and could be the next “Prince Albert success” story, says Badenhorst. It offers a similar unique blend of heritage, tourist attractions, natural beauty, and authentic country living and could mirror the trajectory of Prince Albert, where early property acquisition driven by semigration, tourism, and small-business investment yielded substantial capital appreciation.
It features intact Victorian and Edwardian architecture, wide streets, and a low-density environment which appeals to remote workers, retirees, and lifestyle buyers. Commercial potential is expanding alongside residential interest.
As a gateway to the eastern Baviaanskloof, the town is well positioned to capture growing eco-tourism and outdoor adventure trade, opening commercial avenues across boutique accommodation, hospitality, and local services without losing its rural character.
The town offers early-entry advantages for investors before price levels realign with established Karoo destinations, he says. Residential properties trade between R900,000 and R2m, vacant stands average R250,000, and surrounding agricultural land ranges from R2.5m to R8m.
Eastern Cape Coastal Towns – Port Alfred and Kenton on Sea: Port Alfred and Kenton-on-Sea represent a compelling property-growth story along the Eastern Cape’s Sunshine Coast, driven by record tourist numbers and a surge in demand from semigrating buyers, including young families, from KwaZulu-Natal and the Western Cape, according to Chase Reynolds, Seeff’s licensee for the areas.
Situated between Gqeberha and KuGompo City (East London), these coastal towns present lucrative opportunities for residential and holiday home buyers as well as buy-to-let investors. There has also been a surge in interest in vacant plots to build custom homes.
Port Alfred offers family residences from R1.5m to R2.8m while the high-end Royal Alfred Marina reaches R30m. Kenton-on-Sea commands luxury house prices between R3.5m and R5.5m, with elite estate homes reaching R15m, and vacant land priced from R180,000 and R250,000 (eco estate) in Kenton and from R485,000 for premium sea-view plots in Port Alfred. Neighbouring pockets such as Bathurst and Kleinemonde provide accessible entry points, with stands from R200,000.
A shortage of long-term rental stock supports yields averaging R12,000 to R15,000 monthly while peak seasonal holiday rentals generate R3,500 to R14,000 per night. Reynolds highlights that this supply deficit, combined with sustained semigration, gives property investors a strategic opening for capital growth and reliable rental returns in an expanding market.
