Choosing what may be your “last home” is never easy. Between lifestyle dreams and financial realities, the decision can feel overwhelming. Paul Stevens, CEO of Just Property, shares pointers on what to look for – from coastal calm to capital growth – to help you retire with confidence.
For many South Africans, the dream of retirement begins with the ocean. Many of us see ourselves trading city traffic for sea air, quiet walks on the beach and a slower pace of life. There are so many options, but for the point of this article, I’m going to focus on coastal towns. From the Cape to KZN, these have long attracted retirees who want to enjoy their golden years in scenic surroundings. But retirement is not only about lifestyle. For some, it is also about protecting savings, securing steady capital growth and keeping options open for the future. The best retirement properties strike a balance between calm living now and smart investment value later.
These are my personal pointers to making the right decision.
Start with your goal: lifestyle, growth – or a blend
Be honest about what matters most over the next 10 to 20 years. If living out your life by the ocean, with a strong community and easy access to care lead the list, then focus on lifestyle estates and coastal towns. If you are prioritising wealth preservation and options for later life, look at well-located apartments or townhouses in strong economic nodes where rental demand and capital growth prospects tend to be more resilient. Western Cape inflows driven by semigration have been a powerful force in recent years, and select Cape metros and towns continue to show deep buyer and tenant demand – an important signal for investors planning their move into retirement in stages.
Lifestyle first, healthcare nearby
The reason that South Africa’s coastal belts remain perennial favourites for retirees is simple: climate, scenery, outdoor living, friendly communities and good healthcare. When viewing, prioritise proximity to hospitals and day clinics, level plots or step-free access, and estates with on-site wellness or care partners. A number of coastal retirement estates now combine independent living with assisted-living suites and frail care on the same campus, which can delay or avoid disruptive moves later.
City convenience and lock-up-and-go ease
If you want strong letting potential and long-term liquidity, consider a compact apartment or townhouse close to business districts, hospitals, public transport and retail. Lower vacancy rates and steady tenant demand in certain price bands can support a buy-now, retire-later route where rentals help cover costs until you downshift your own lifestyle. Western Cape markets have recently reported some of the lowest vacancies countrywide, reinforcing the case for centrally located, well-managed units in that province.
Plan for changing needs
Independent living in a village or estate offers privacy with shared amenities. Assisted living adds support with daily tasks such as meals, cleaning and medication management, often in a serviced suite. Frail care provides 24-hour nursing for higher medical needs. Even if care feels far off, confirm the pathway: can you move from a freestanding home to assisted living without leaving your community, and are there guaranteed beds for residents?
But wait! First choose your ownership model
The way you choose will shape your costs, your rights and the legacy you leave so it pays to understand each option clearly. Here’s a brief overview, but it’s worth spending the time to thoroughly understand each and how it will impact you.
- Life rights: You purchase the right to live in a unit for life, typically from age 50 upwards. The scheme is regulated by the Housing Development Schemes for Retired Persons Act. You do not own the real estate, so there is no transfer duty, and the developer is usually responsible for maintaining buildings and common areas. On departure or death, your estate receives a refund based on the contract formula. Read the buy-back terms carefully and compare villages.
- Sectional title: You own the unit and a share in the common property. It is registered in the Deeds Office, with standard transfer costs. You or your heirs can sell in the open market, but monthly levies and possible special levies apply. The upside is asset ownership and potential capital gains. The trade-off is more responsibility for upkeep and market risk when selling.
- Full title (freehold): You own the stand and home outright, usually within a homeowners association. These homes are often the most house-like option in retirement estates and can be simpler to modify. Consider maintenance costs over time and the estate’s rules on alterations and care access.
A quick-check list:
- Location and healthcare access
- Security and response times
- Levy forecasts, reserve funds and insurance
- Ownership rules and resale conditions; step-free accessibility
- Community activities, guest and pet policies
- Realistic evidence of resale or letting demand in the area.
Rising demand and coastal hotspots to watch
South Africans are living longer, and the over-60s share of the population is growing. Retirement developments are therefore a credible long-term investment for those who value lifestyle with built-in support. Popular coastal destinations include Cape Town, Hermanus, Plettenberg Bay, Jeffreys Bay, St Francis Bay, Port Alfred, Mossel Bay, Amanzimtoti, Umhlanga, Margate and Port Shepstone. These towns blend scenery with healthcare access, established amenities and a steady pipeline of age-friendly developments, which supports both quality of life and future resale.
The affordability squeeze
According to the FNB Retirement Insights Survey 2025, almost 40% of all South Africans have no retirement savings, and 25% of those over 60 do not feel on track for a comfortable retirement. Rising costs have added strain, prompting more over-60s to continue working or supplement their income with part-time work.
Unfortunately, many retirement developments cater to higher budgets. If you are budget-conscious, the open market still offers opportunities, particularly sectional title or small freehold homes in accessible neighbourhoods. But competition with younger buyers will intensify as stock levels remain constrained.
For buyers and their advisers, the opportunity lies in identifying affordable, well-located homes in emerging nodes, smaller coastal towns and value-for-money estates that still provide security and access to care.
Alternative routes if you are not ready to move yet:
- Buy-to-let now, retire later
Purchasing an investment unit in a strong rental market can create a future landing pad while tenants help service costs. Work with a trusted agent to identify neighbourhoods with stable tenant pools, low vacancies and walkable access to clinics and shops.
- Co-owning with friends or family
Pooling deposits and costs can make retirement living more attainable. Decide upfront whether you will buy an adaptable family home to subdivide, separate cottages, or a small block of sectional units. Use a robust co-ownership agreement that covers financing, missed payments, exit options, usage rules, maintenance and what happens if a partner needs full-time care. Seek independent legal and financial advice before signing.
- New developments and off-plan options
Buying in a new retirement or lifestyle estate can reduce upfront costs because there is no transfer duty on the building price. Modern designs often include age-friendly layouts, solar and inverters, and community health partnerships. Off-plan purchases require careful vetting of the developer, body corporate budgets, levy forecasts and completion timelines. Request the full set of rules, service-level agreements and care contracts before committing.
Retirement property by the numbers:
Lightstone data highlights an undersupplied, upper-end-skewed retirement market. South Africa has around 650 registered commercial retirement complexes with fewer than 100 000 units that accommodate no more than 125 000 individuals. This leaves most of the country’s retirees to buy in the open market. Of the units registered at the Deeds Office, more than half are valued above R1.5 million, with average purchase prices around R1.9 million over the past five years. Regional supply is uneven, with the Western Cape leading. Around 35% of retirement properties are in estates and 65% in sectional schemes.
How we can help
It’s a lot to think about. At Just Property, our property professionals can shortlist retirement options that match your health, budget and lifestyle goals, and talk you through the fine print on life rights, sectional title and care pathways. Reach out for a personalised shortlist and a frank view of pros and cons in your target areas.
