The small coastal town in South Africa which is a hotspot for the ultra-rich
The coastal town of Hermanus in the Western Cape has established itself as one of the most popular hotspots for the wealthy, attracting property buyers from around the world.
The small town, known for whale watching and its idyllic coastline, is one of the safest areas in South Africa, making it a sought-after location for investment and property development.
Located roughly 120km from Cape Town, Hermanus traces its roots back to the early 1800s, when a man named Hermanus Pieters travelled south of Caledon, following an elephant trail through the mountains to the coast.
Pieters, a Dutch teacher and farmer, discovered a fresh spring and decided to establish a camp because the spring and nearby grazing land were ideal for his livestock.
He soon attracted other Dutch farmers who wanted their children to be taught in their native language rather than English, which was mandatory at the time.
From there, the settlement eventually grew into a village that was named Hermanuspietersfontein, though the name was shortened to Hermanus in 1902 because the postmaster grew tired of writing the full name on every letter.
Hermanus was officially declared a town in 1904. Over the following decades, the town evolved from a small fishing community to a popular seaside resort.
It developed a reputation as a getaway for wealthy foreigners. The famous Harley Street doctors in London began prescribing trips to Hermanus for individuals suffering from respiratory illnesses such as tuberculosis.
By the 1920s, Hermanus was known for its “Champagne Air,” with dedicated hotels and sanatoriums built for affluent international tourists.
As the country rapidly industrialised, there was pressure to build a direct railway line from Cape Town.
However, the General Manager of South African Railways, Sir William Hoy, blocked it because he knew the smoke and noise would ruin the town’s charm.
After World War II, Hermanus cemented its reputation as an elite real estate destination for the wealthy, as Europeans began buying up summer homes to escape the winters of the Northern Hemisphere.
A hotspot for high-net-worth individuals
Today, Hermanus is still a sought-after town for high-net-worth individuals, attracting dollar-millionaires faster than any other part of the country.
According to the Africa Wealth Report, the Whale Coast is the fastest-growing wealth hub in South Africa.
Of the 122,500 millionaires living on the continent, roughly 41,100 live in South Africa, including 112 centi-millionaires and eight billionaires.
The Whale Coast, which refers to the area between Cape Town and the Garden Route, has seen a 50% increase in millionaire and centi-millionaire residents in recent years.
It now houses approximately 1,700 millionaires and 7 centi-millionaires, most of whom are based in Hermanus.
Paul Kruger, licensee for Seeff Hermanus, said that the town was attractive to property buyers because of its beautiful location, weather, lifestyle, safety, and proximity to Cape Town.
The influx of high-net-worth buyers has resulted in a property boom. Over the last six years, the sale of homes valued over R5 million has more than doubled from 57 in 2019 to 132 in 2025.
Hermanus’s most exclusive areas, such as Kwaaiwater and Voëlklip, have properties that fetch between R20 million and R40 million. “We are now seeing estates that could top the R100 million mark,” said Kruger.
Semigration is playing a large role in this trend, as wealthy buyers from Gauteng are relocating or buying holiday homes in the Western Cape.
Hermanus’s close proximity to the Cape Winelands is also a point in its favour, supporting the affluent lifestyle sought by its growing community.
Whale watching and summer tourism continue to play a large role in the local economy; however, Hermanus is being supported by the growth of new sectors, including software development, marine conservation, healthcare, media, and wealth management.
Hermanus Photos
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