As South Africa’s economy shows signs of recovery, areas in the Eastern Cape, particularly St Francis Bay, have emerged as hotspots for semigration.
With inflation decreasing from 5.3% in early 2024 to 2.9% by November, the property market is seeing an upswing, especially in coastal cities and towns.
Paul Stevens, CEO of Just Property, noted that semigration continues to shape the market as people seek out more peaceful and affordable living options away from the hustle of urban centres.
Urban areas in the Eastern Cape, including Gqeberha and St Francis Bay, are becoming increasingly attractive to both local and international buyers due to ongoing investments in infrastructure.
Among the smaller towns showing positive growth are Jeffreys Bay, Port Alfred, Kenton-on-Sea, and Mthatha, with St Francis Bay standing out as a key beneficiary of this trend.
St Francis Bay, once a quiet holiday destination, has seen remarkable growth in its property market. According to Lightstone statistics, freehold properties make up 89.1% of the residential market in the area, with 26.7% of these homes located within security estates.
Over the past decade, freehold property prices have surged by 66.8%, with the area becoming a hotspot for families, retirees, and remote workers.
The property market in St Francis Bay reached its highest level in a decade in 2021, with 173 freehold homes and 55 sectional title units sold. This trend continued into 2024, with 331 property transfers recorded up to November 2024, with 389 transfers recorded in 2023.
The average sale price of homes in the area has increased significantly, particularly for properties in the Canals area, where prices range from R7 million to R20 million. Even vacant plots have seen substantial price increases, with some plots purchased for R800,000 now being sold for R1.8 million in just one year.
The property market in St Francis Bay is attracting buyers from across South Africa, including Gauteng, Cape Town, and KwaZulu-Natal, as well as from overseas markets such as the UK, Holland, Sweden, Germany, and America.
The area’s appeal is not only due to its coastal lifestyle but also its growing infrastructure and amenities.
Chas Everitt St Francis Bay reported a significant surge in property sales, particularly after the pandemic lockdowns in 2020/2021, which spurred demand for more spacious, relaxed living.
The agency noted that sales from mid-2021 to mid-2022 were especially strong, and demand for property in the area shows no signs of slowing down.
It said that St Francis Bay has gone from being a quiet holiday retreat to one of South Africa’s most popular ‘zoom towns,’ where young couples, families, and retirees are flocking here from cities around the country to enjoy our peaceful and relaxed lifestyle.
In two years alone - 2022 and 2023 - the town saw 400 new families move in, sparking new property developments to meet the demand.
The influx of residents has been fuelled by the low home loan interest rates that prevailed until December 2021, combined with the significant rise in remote working, which has allowed people more flexibility in choosing their place of residence.
While many semigrants have moved to St Francis Bay to work remotely or retire, there is also an increasing number of individuals bringing their businesses or professional practices to the area. This trend is benefiting the local economy, as new businesses open and existing ones see more investment.
The primary demographic of property buyers in recent years has been individuals aged between 40 and 60, with many relocating from Johannesburg, Cape Town, and Durban.
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