In 2000, properties in this town sold for R90 000; today they’re worth R2.8 million

Very few of South Africa’s small towns can boast about rising property values the way Knysna along the Garden Route can.

Although Knysna has always been the gem of the Garden Route, small Western Cape towns like Stellenbosch and Hermanus often make headlines.

But buyers who had the foresight to invest in the town decades ago are cashing in.

Knysna Property Prices

If you bought property in Knysna for R100 000 26 years ago, it would be worth 28 times that today, roughly 8 times the rate of inflation.

Today, the average sale price in Knysna is R2.8 million.

In suburbs like Old Place, where properties routinely sold for below R100 000 in 2000, the average sale price is R2.2 million.

If you bought a property for R90 000 in this area 26 years ago, the value would have increased by 2350%.

However, if your home had increased in line with inflation, it would be worth R356,360.29 today.

There aren’t any properties available in Knysna at this value today.

Instead, the cheapest land in Knysna is on the market for R695 000.

For this price, you could get a 323-square-metre plot in Metelerkamp.

The most affordable home on the market is a 3-bedroom home in Rykmanshoogte listed for R1.65 million.

In the past five years, property values have increased 47.4%.

The average sale price in 2021 was R1.9 million; today it’s R2.8 million.

YearAverage Sale PriceIncrease2021R1.90 million15.6%2022R1.90 million0.00%2023R2.07 million9.25%2024R2.27 million9.60%2025R2.40 million5.50%2026 (September)R2.80 million16.67%

Knysna’s Rise as a Sought-After Property Destination

Knysna’s rise as a sought-after property destination can be explained by its proximity to George coupled with the town’s own amenities.

In 2001, Knysna’s population was 51 469.

As of the 2022 census, the small town’s population had increased by 86.63% to 96 055.

Likewise, George’s population was 135,408 in 2001, more than doubling to 294 929 by 2022.

Well-heeled buyers wanting proximity to George’s amenities found Knysna attractive.

George is only an hour’s drive away.

But Knysna has a gorgeous lagoon, coast, and small-town community.

Spotting the Next Knysna

Many small towns have a similar population makeup to Knysna and breathtaking natural landmarks.

But very few have attracted well-heeled buyers who have boosted property prices.

George’s expansion and growing industry helped maintain Knysna.

But the town also benefited from its infrastructure.

Therein lies the secret to spotting a small town with potential.

Small towns close enough to growing larger cities could replicate Knysna’s success.

However, these towns also need well-maintained infrastructure to help property owners hold onto their home’s value.

Towns like Saldanha Bay share many of Knysna’s characteristics circa 2000.

Buyers can purchase plots in the town for under R200 000.

The population of neighbouring cities is increasing.

Between 2001 and 2022, Langebaan’s population more than doubled.

Saldanha is a 25-minute drive from Langebaan and roughly a 1-hour-and-20-minute drive from the expanding Table Bay region.