Cape Town’s False Bay coastline is booming – and the numbers prove it.
With major investment by the City of Cape Town into the Muizenberg beachfront, property prices across the Southern Peninsula are surging, drawing interest from residential buyers, investors, and Airbnb hosts alike.
In Kalk Bay for instance, property prices have jumped as much as 150% for sectional title homes over the past five years.
Kalk Bay was not so long ago named the coolest neighbourhood in world in an article published by Forbes.
According to Lightstone data, house and sectional title prices have jumped by 68% and 31.8% respectively this year, from R4.762 million in 2023 to R8m and from R4.55m to R6m, with very little movement in land sales due to lack of availability.
Kalk Bay property prices for instance have seen sectional title homes rising by as much as 150% over the past five years. Once named the coolest neighbourhood in the world by Forbes, this seaside village is now one of Cape Town’s most sought-after addresses.
Lightstone data for 2024 showed that the average freehold home climbed as much as 68% in a single year, from R4.762 million in 2023 to R8 million in 2024. Sectional title properties saw a similarly strong jump, rising 31.8% from R4.55 million to R6 million.
Land sales remained stagnant—not due to lack of demand, but a shortage of available plots in this tightly held suburb.
The improvements – which include the revitalisation of the promenade, enhanced parking facilities, upgrades to Surfer’s Corner, and restoration of heritage structures – are expected to significantly increase the area’s appeal for both residential and investment buyers.
Anton Liebenberg, licensee for Seeff False Bay, said the upgrades will not only attract more tourists but also boost the desirability of the region among homebuyers and investors, including those focused on Airbnb opportunities.
The pandemic years saw tremendous activity in the False Bay property market, and we are now seeing new developments popping up across Muizenberg and neighbouring suburbs.
The False Bay coastline—stretching from Muizenberg to Simon’s Town—has long been a favourite for weekend getaways and holidaymakers.
With Blue Flag beaches in Muizenberg and Fish Hoek, as well as iconic attractions like the penguins at Boulders Beach, colourful huts of St James, and the artsy charm of Kalk Bay, the area blends coastal leisure with rich cultural heritage.
Supply Shortages & Buyer Waiting Lists
The market remains strong, with high demand and a shortage of stock, said Liebenberg. There is even a waiting list of buyers eager to relocate, but many current owners are holding onto their homes for the long term.
In Kalk Bay for instance, 93% of buyers are over 50-years of age. And in Fish Hoek, 50% of residents are under 50-years, but 57% have been in their homes for 11+ years. In Glencairn, buyers are predominantly older, 79% are over 50 and 53% have been in their homes for 11+ years.
He noted that buyers range from young families seeking a healthier lifestyle to retirees and semigration buyers from Gauteng and other provinces.
The rental market is also thriving, particularly in Muizenberg, where surfer culture drives demand for long- and short-term lets.
Rentals range from R12,000 to R23,000 per month, with luxury homes fetching significantly more.
False Bay Property Price Growth: 2020 vs 2025
| Area | 2025 Avg. Price (FT) | 2025 Avg. Price (ST) | 2020 Avg. Price (FT) | 2020 Avg. Price (ST) | % Growth (FT) | % Growth (ST) |
|---|---|---|---|---|---|---|
| Muizenberg | R3.2m | R1.5m | R1.8m | R1.0m | +77% | +50% |
| Kalk Bay | R9.0m | R5.0m | R4.9m | R2.0m | +83% | +150% |
| Fish Hoek | R3.8m | R2.1m | R1.6m | R1.1m | +137% | +90% |
| Glencairn | R3.0m | — | R2.3m | — | +30% | — |
| Simon’s Town | R3.7m | R2.0m | R2.6m | R2.0m | +42% | 0% |
| Marina Da Gama | R2.8m | R1.2m | R2.0m | R1.0m | +40% | +20% |
| Lakeside | R2.9m | R1.8m | R2.0m | R1.8m | +45% | 0% |
FT = Freehold | ST = Sectional Title | Source: Seeff / Lightstone
Neighbouring Areas Also Booming
Tracey Reid-Daly, licensee for Seeff Southern Peninsula, said areas such as Kommetjie, Noordhoek, and Scarborough are also seeing heightened interest and rising prices, largely driven by semigration and international buyers.
Noordhoek now averages around R9 million, while Kommetjie stands at R6.3 million, with most sales exceeding R3 million.
She attributes the appeal to the area’s wide open beaches, scenic mountain views, and tranquil lifestyle – offering the ideal mix of nature, space, and proximity to Cape Town.
With upgraded infrastructure, a growing reputation among local and foreign buyers, and limited stock driving up prices, the Southern Peninsula—especially Muizenberg – continues to prove itself as one of Cape Town’s most promising coastal property markets.