Kalk Bay, recognised by Forbes as one of the coolest neighbourhoods globally, has seen a surge in popularity, reflected in the soaring median property prices that hit record highs this year.
With limited land available for new development, this charming seaside village is poised to become the Cape's trendy hotspot.
A three-bedroom villa in Kalk Bay's The Majestic is currently on the market for R17.75 million.
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 R8 million and from R4.55 million to R6 million, with very little movement in land sales due to lack of availability.
It's not just vacant land that's in short supply. Paula Giusti and Jonathan Alexander, area specialists for Lew Geffen Sotheby’s International Realty, note that properties, especially in the entry and mid-level price ranges, are also scarce, with well-priced homes selling quickly.
“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 R6.5 million 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.”
Kalk Bay offers a wide variety of property options, from quaint cottages and quirky flats to oceanfront apartments and expansive hillside homes.
Many older properties have been renovated, resulting in some stunning homes in the area. Secure developments are particularly popular with upcountry buyers, though these homes are in 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.”
Many family-sized homes in Kalk Bay are renovated houses bought from retirees who downsized.
These buyers are often empty nesters seeking a tranquil, quality ocean lifestyle, with easy access 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.”
There is also a strong rental market, especially for holiday lets, which are in high demand. This presents good opportunities for investors looking for 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."
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