The South African fishing village where house prices increased by R1 million every year since 2020

The small village of Kalk Bay in Cape Town has seen house prices grow by R1 million every year since 2020 due to the surge in demand for property in the Western Cape.

International and South African homebuyers are increasingly drawn to Cape Town and other parts of the Western Cape for their lifestyle appeal, natural beauty, and governance. 

The province’s small coastal towns and expanding remote work opportunities make it attractive to foreign investors and semigrants. 

The rand’s relative weakness is a major draw for foreign buyers, providing value for money when purchasing property in sought-after areas.

This is one reason the City of Cape Town is investing significantly in upgrading and refurbishing these areas.

One of these areas is the Muizenberg beachfront, which includes improvements to the promenade, parking, Surfers’ Corner, and heritage structures.

Seeff Property Group told BusinessTech that these will significantly impact demand and further boost property in the False Bay area, including Kalk Bay.

Kalk Bay is a fishing village that lies on the west coast of False Bay. Much of the town is built on the slopes of mountains which border the sea.

Kalk Bay’s historically dominant fishing industry has largely been replaced by tourism, driven by a few notable attractions. 

The harbour still hosts an active fishing industry but has become a popular tourist attraction. It features multiple seafood restaurants and a fresh fish market. It is also known for its population of brown fur seals.

According to the City of Cape Town, Kalk Bay is best known for its vibrant fishing harbour and bustling main road.

The road has old buildings and various trendy restaurants, art galleries, antique shops, and bohemian boutiques. 

The notable increase in demand for property along the Western Cape coastline and the interest in False Bay have boosted house prices in recent years, including Kalk Bay. 

“These areas have experienced significant growth in sales and prices during the pandemic years, attracting a mix of residential and investment buyers, including Airbnb investors,” said Seeff.

From 2020 to 2025, the prices of areas in False Bay increased from 20% to as much as 150%.

According to Seeff Property and Lightstone data, Kalk Bay full-title house prices increased from R4.9 million in 2020 to R9 million at the start of 2025—a 83% increase. 

On average, sectional title property prices increased by 150% over the same period, from R2 million to R5 million. 

Small towns and other areas in False Bay have seen similar growth, including Fish Hoek, Simonstown, Glencairn, Marina Da Gama, and Lakeside.

The average property price in these areas in 2020 ranged from R1 million for a sectional title to R4.9 million for a full-time home. In 2025, this increased from R1.2 million to R9 million.

Who’s buying and selling in these areas

Anton Liebenberg of Seeff False Bay noted that most sellers in these areas only move for necessity, such as downsizing due to empty nesting or relocating to retirement facilities.

He said that buyers, however, tend to be a mix of young and old. These include families looking for a healthy lifestyle or people moving from the Southern Suburbs to be closer to the sea. 

“There has also been a notable uptick in international buyers, often because they have been exposed to the area as tourists, and they tend to stick to the tourist areas such as Kalk Bay, St James and Simonstown,” he added. 

Liebenberg noted that while some areas are becoming more expensive, Muizenberg, Fish Hoek, and Simons Town, in particular, offer good value.

Apartments are popular, often for holiday purposes or as Airbnb investments. These are priced upwards of R1.5 million. 

Houses tend to be priced at around R2 million, but a luxury home with views in Fish Hoek can cost as much as R17 million. False Bay is also very popular for rentals, often driven by school access and leisure attractions. 

Muizenberg is hugely popular with surfers looking for rental accommodation. Average rental rates are around R12,000 to R23,000 per month, but luxury homes and sea-view properties can be well above this.

Tracey Reid-Daly, licensee for Seeff Southern Peninsula, which covers Kommetjie, Noordhoek, Chapmans Peak and Scarborough, said these areas have also seen a notable uptick in demand and prices since the pandemic. 

Aside from locals moving here, there is also an influx of semigration buyers and international buyers who fall in love with the area.

Kalk Bay