KZN is flexing its real estate muscles

KZN is flexing its real estate muscles

Private Property South Africa
Kerry Dimmer

BetterBond statistics reveal that bond application numbers have shown year-on-year increases of up to 16 percent in each of the first four months of 2019 and that there have also been large increases in the value of the bonds approved. All good, but it is KwaZulu-Natal that stands out particularly, with BetterBond research showing a 14 percent increase in the number of transfers registered in the province in the six months to end March compared to the same period in 2018, and a 22 percent increase in the value of transfers registered.

KZN thus profiles somewhat as an awakening giant. Our own statistics reveal that the median asking price in the region has realised steady but slow growth over the past few months. This indicates rising demand, especially at the top end of the market as the traditional trend of semigration to the Western Cape wanes and KZN gains ground as a relocation and/or second home destination.

The reasons are numerous, including: the development of luxury, and super-luxury, estates along the north coast; proximity of an international airport; Joburg salary depression; and value for money. When viewed as a whole, these factors may translate into simple economics but the one over-riding catalyst appears to be the King Shaka airport, and its surrounding business developments.

Berry Everitt, CEO of the Chas Everitt International property group says an increasing number of SA executives and professionals are becoming super-commuters, those that travel weekly by air, between their job and home that are in different provinces. “For many the rationale for this lifestyle is to ensure that while they are working, their family lives in a safer and less stressful environment, usually a secure gated estate and with schools sited close by.

“This has been a huge driver of recent home demand in luxury estates at the coast, particularly the KZN North Coast, where the proximity of the King Shaka International Airport makes it very convenient to take a one-hour flight to Johannesburg,” says Everitt. And let’s not forget the price of air tickets, with the cheaper option obviously being travel to/from Durban over Cape Town, with sometimes up to R800 difference when factoring in peak travel times.

According to RE/MAX two of the top five positions for the most searched suburbs on its website are KZN’s La Lucia and Durban North. Re/MAX’s Panache broker/owner operating in those two areas, Grant Gavin, says that the North Coast is a hotspot for future growth in the province. “And not just around Umhlanga and Umdloti, but further north too. With strong demand for North Coast living likely to stimulate longer term price appreciation, it would be wise to get in early before house prices in these areas begin to climb,” he says.

Manuella Botha, a Chas Everitt International area specialist for Zimbali, Simbithi and other top estates near Ballito, says that before the airport was relocated, some 70% of homes in these estates were foreign-owned, and the remainder used as holiday homes by affluent South Africans. “Now however, about 80% of homes are permanently occupied, mostly by SA owners, and only 20% used as holiday homes.”

The province is also attracting more than its fair share of buyers from the rest of Africa, who have business ties with Asian countries and even Mauritius and Australia. With close living to the Port of Durban, and access to an international airport, why shouldn’t they equally enjoy the climate and coastal lifestyle that the region is renowned for?

Salaries also have to be factored into the economic scenario. Deutsche Bank claims that Johannesburg salaries are lagging behind those of Cape Town, which with its higher property prices serves only to highlight KZN’s North Coast as a far more affordable destination for those seeking to relocate from Johannesburg.

New KZN coastal precincts are being readily snapped up: the Sibaya Coastal Precinct, which will ultimately provide 12 000 residential dwellings, achieved R3.2-billion in sales in 18 months; the R15-billion Blythedale Coastal Resort has almost sold out its Phase 1 and 2 stock; and Lush, a condo-style development within the Elaleni Coastal Forest Estate, has opened sales for Phase 2 following the successful conclusion of Phase 1 sales.

Estates such as these are also attracting a multitude of entrepreneurs in the form of small businesses and home operations to cater to the lifestyle choices of residents. As a result, the coastal areas are seemingly no longer the sleepy little towns of old, but buzzing with new energies and stylised eco-living.

Find homes for sale in KZN here

Share:

Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

Luxury living in South Africa
Three South African suburbs have been highlighted as the epitome of luxury living in South Africa. Here's why these three regions are attracting the well-heeled elites and big spenders.
Great Karoo Sees Giant Growth
When considering the vast landscape of SA’s largest province, the relatively small population of one million people in Northern Cape seems incongruous. However, there’s very little else that can be described as small in this ...
A guide to property in the Raslouw area
Find out what the property market looks like in Raslouw, Centurion West.
Top 10 hotspots to live in the Western Cape
Here’s where people in the Western Cape are flocking to and why.

Explore neighbourhoods mentioned in this article

Ballito
Small coastal town with a big personality
Ballito, on the Kwazulu Natal North Coast, has grown quickly recently. Upmarket estates, restaurants and shopping centres now inhabit areas that were sugar cane fields not long ago. Many families are relocating to the area to take advantage of the relaxed coastal lifestyle that the area offers, even though it is just 30 minutes drive from Durban. Ballito has 3 excellent malls offering lots of retail therapy, great restaurants, private schools, private hospitals and ample sporting facilities. Beside the houses and flats in the main residential and beachfront areas, there are many newly built, secure estates that provide a choice of property types for those moving to the area.
Durban North
Small sophisticated suburb
Durban North is an established small suburb where the people are friendly, and the surroundings are beautiful. It is a family-oriented area with many activities available. Situated between Durban central and Umhlanga, all amenities and schools are located only minutes away. The area boasts spectacular sea and city views. Although it is centrally and conveniently located, living in Durban North feels very much like living in a small town.