Record prices in Kalk Bay proving that quaint charm is the new cool

Source: Supplied. A three-bedroom villa in Kalk Bay's The Majestic, is on the market for R17,750,000.

According to Lightstone data, house and sectional-title prices have jumped by 68% and 31.8% respectively this year, from R4.762m in 2023 to R8m and from R4.55m to R6m, with very little movement in land sales due to lack of availability.

And it’s not only vacant land where stock shortages are being seen. According to Paula Giusti and Jonathan Alexander, area specialists for Lew Geffen Sotheby’s International Realty, properties are also in short supply, especially those in the entry and mid-level price bands, with well-priced homes being snapped up soon after they come onto the market.

“Lack of available stock is another factor driving up prices in the area and this is not likely to improve any time soon as a growing number of buyers seeking coastal living in Cape Town are realising that this coastal strip offers excellent value compared to other areas like the Atlantic Seaboard.

“It used to be that the majority of buyers here were locals looking to move closer to the beach or retire, however, this is no longer the case as Kalk Bay has become very popular with upcountry buyers and has also started to attract the attention of foreign investors.

“We’re currently marketing a R6.5m home in which five foreign buyers are interested and we’re also starting to see this level of interest in St James and Fish Hoek.”

Varied property options

A significant drawcard in Kalk Bay is the wide variety of property options, from quaint cottages and quirky flats to oceanfront apartments and expansive hillside homes.

“Many of the older properties have been renovated in recent years, so there are some stunning homes in the area,” say Alexander and Giusti.

“There are also a few secure developments which are especially popular with upcountry buyers, but these homes tend to be in very short supply.

“The property that is currently attracting the attention of foreign buyers is a stunning three-bedroom villa in The Majestic, an exceptionally well-maintained secure development in the heart of Kalk Bay close to all the shops and restaurants with its own gym, pool and spa.

“One of only four villas in the complex, it’s set back from main road so while it’s conveniently centrally located, it’s still very peaceful with ocean views from the bedrooms.”

According to the duo, many of the family-sized homes within the Kalk Bay village are renovated houses which were bought from retirees who downsized.

”Most of these buyers are empty nesters who relocate to Kalk Bay looking to make the most of a tranquil and quality ocean lifestyle, where they can walk to good restaurants, tidal pools and quirky shops.

“The smaller cottages and flats tucked away up cobbled streets near the main road tend to attract younger buyers who enjoy the vibe of the village and easy access to the eclectic boutiques, cafes and restaurants as well as to the beach where they can hop into the ocean for a swim or surf.

“Foreigners like to buy property in this area as investment that they can rent out when they're not staying here themselves.”

Rental market opportunities

They add that there is also a strong rental market, especially for holiday lets, which are very much in demand: “This represents good opportunities for investors who can look forward to great long-term capital growth and excellent short-term returns.

“Kalk Bay has its own very unique character. In one way it has a very European feel with its cobbled roads and trendy onsite shops, cafes and restaurants yet with a distinctive local influence and it therefore has a very eclectic demographic which adds to its considerable charm.

“And there are few places where outdoor lovers are as spoilt for choice. Along the oceanfront they can enjoy seaboard walks, water sports and an invigorating dip in the tidal pools or sea, and the mountains above Boyes Drive have several marked walking trails along which hikers can enjoy a profusion of bird life and indigenous vegetation and spectacular sea views.”