This coastal town in the Cape is outpasing its rivals for wealth migration
Luxury property buyers are not only heading to Cape Town for spectacular homes, but are now increasingly investing in Hermanus, according to Paul Kruger, licensee for Seeff Hermanus.
The last five years has seen a notable rise in sales over R5 million with at least 26 homes sold for over R20 million to R40 million in Kwaaiwater, and R47 million in Voëlklip.
The semigration influx trend has seen a notable rise in wealthy buyers investing in residential, retirement and second homes.
A New World Wealth Report notes that there’s been a 25% increase in high-net-worth individuals who have migrated here, primarily from Gauteng, but even nearby Cape Town.
This significantly surpasses the wealth growth of Cape Town (10%), the Winelands (18%), and Garden Route (22%).
Lightstone data reveals that Hermanus leads in both transaction volume and value among the five largest smaller coastal towns—Hermanus, Jeffreys Bay, Knysna, Plettenberg Bay, and Ballito. In the 12 months leading up to January 2025, Hermanus recorded 808 transactions valued at over R2.6 billion.
Sales of houses priced over R5 million have more than doubled over the last five years from 57 transactions in 2019 to 132. Hermanus is now also competing with Plettenberg Bay in the high value category with some 26 residential homes sold for over R20 million over five years.
The laid-back cosmopolitan coastal lifestyle, and low crime rate are key attractions, but the town is not short of amenities with new private schools such as Curro and Generation Schools, a regional mall, healthcare and more.
Aside from being one of the top destinations in the world for whale watching, Hermanus also offers the growing Hemel-en-Aarde Wine Valley with over twenty wineries, including the sought-after 200-hectare Benguela Cove Lagoon Wine Estate which includes spectacular homes.
Kruger said buyers no longer need to head to the Winelands for a home on a working wine farm as Benguela Cove offers the best of both, vineyards and the lagoon setting. It sits on the banks of the Bot River Lagoon with scenic water and mountain views, vineyards, and olive trees.
The estate is a real eyecatcher attracting luxury buyers looking for residential and second homes. The plots are large (up to 4,000sqm), and the luxury houses are priced to R25,875m for a premium, 700sqm home with views from every room.
