KNYSNA NEWS - Knysna's property market continues to show resilience, with average sales values rising significantly in recent years despite ongoing municipal service delivery challenges.
Data based on deeds office records and industry activity shows that average property prices have increased from about R1.97m in 2022 to approximately R2.7m in 2026 year-to-date, a rise of around 37%.
Lifestyle-driven demand
Paul Stevens, CEO of Just Property, says the town is not performing like a typical distressed market.
"Knysna isn't behaving like a normal distressed town. It's functioning more like a lifestyle-driven, semigration-focused coastal node, and those markets tend to follow different dynamics," he says.
According to Stevens, demand is being driven largely by semigration, particularly among retirees, remote workers and higher-income buyers.
"People are generally aware of the service delivery challenges, but many are planning around them. For a portion of the market, the lifestyle offering, including the lagoon, natural environment and the small-town character, remains a strong drawcard."
He adds that Knysna is often compared with coastal towns such as Hermanus, Plettenberg Bay, St Francis Bay and Langebaan, where lifestyle considerations strongly influence buying decisions.
Rising transaction volumes
Deeds office data shows transaction volumes have increased from 954 sales in 2023 and 964 in 2024 to more than 1 070 in 2025. While this reflects sustained demand, analysts note that volumes remain sensitive to interest rates, economic conditions and local infrastructure performance.
Strong demand in estate market
High-end demand remains particularly active, especially within secure estates. Properties in Pezula Golf Estate, Simola Golf and Country Estate, Thesen Island and Belvidere Estate continue to achieve multimillion-rand sales.
Many buyers relocating to the area are from Gauteng and KwaZulu-Natal, with a notable share of cash purchases or large deposits.
Estates and infrastructure concerns
In the context of municipal uncertainty, estates are increasingly seen as offering more predictable infrastructure and management.
"Some buyers perceive estates as more controlled environments. That contributes to their appeal for those seeking stability," Stevens says.
Current Knysna property price bands (indicative ranges based on prevailing market pricing), according to Stevens:
Sectional title units: from about R1.4m to R3m.
Freehold erven (vacant stands): typically range from about R850k to R3.8m, with premium stands priced higher depending on size and location.
Freehold homes: from around R2.5m to R5m.
Estate properties: about R5m to R12m.
Vacant land (larger parcels / prime sites): anywhere from about R1m to R4m+ depending on size, zoning and positioning.
Outlook remains cautious but stable
Industry stakeholders advise that buyers should factor in local service delivery realities and consider backup systems such as solar power and water storage.
Stevens says the market shows no clear signs of weakening, but long-term performance remains linked to infrastructure stability.
At the time of publication, Knysna Municipality had not responded to the paper's requests for comment.
* Figures are based on publicly available deeds office data and market activity reported by industry participants, including Just Property.
