Areas north of Durban in high demand among home buyers

Convenience in terms of location and proximity to good schools, retail centres and medical facilities such as hospitals has become the highest priority for many residential property buyers, coupled with a general leaning towards secure estate living, says Carol Reynolds, a Pam Golding Properties area principal for Durban Coastal.

Consequently, says Reynolds, residential areas which offer an array of amenities such as La Lucia – with its secure estates and complexes, uMhlanga and Durban North are in high demand, while upmarket Sibaya also continues to gain traction given its proximity to King Shaka International Airport, and its new infrastructure, including the new Marine Walk shopping centre, which appeals to those seeking a pristine, managed precinct.

A further positive indicator for the areas north of Durban is that the Durban Business Confidence 2024 Q2 report reveals a significant improvement of 17.07 index points – up from 38.42 in Q1 to 55.49 in Q2.

Says Reynolds: “The upbeat sentiment surrounding the recent international trade forum held in Durban, together with the general shift in municipal leadership which now has a keen focus on service delivery, investment and growth, augurs well for the residential property market.

“Encouragingly we are already seeing a surge in the level of residential property activity. There’s no doubt that the number of excellent schools in our region has also buoyed the housing market, with a consistent flow of young families moving into Durban North for this reason. In addition, Johannesburg commuters continue to buy into new developments and apartment blocks where they can reside while enjoying a lock-up-and-go lifestyle with the convenience of being a short commute away from Jozi.

“Gauteng buy-to-let investors are also returning to our area given that the prices for property in the Cape are much higher. KwaZulu-Natal offers excellent value for money and our climate, with its year-round sunny weather, continues to make our coastal areas highly appealing. Upcountry buyers are also investing in second or holiday homes along our coastline. In fact, approximately 50% of our investment buyers are from Gauteng.

“Interestingly, in recent years, we have experienced more foreign interest than usual, including a number of German purchasers who have acquired homes in Durban North and uMhlanga, while we also have an ongoing stream of Dubai purchasers looking to invest here. On the whole, however, most of our buyer activity is local, with people moving due to lifestyle changes or changes in area needs. Notably, we have experienced a strong influx of buyers moving from the Berea and Morningside into Durban North and La Lucia, which has boosted our property market.”

Reynolds says many primary home buyers are seeking secure living with work-from-home office space. “The most buoyant price band is between R3m and R6m, which generally equates to the purchase of a family home in the area or a secure townhouse in one of the popular estates, like The Gardens. On the whole, we have a consistent stream of transactions in the traditional family home space comprising three to four-bedroom homes which fall into this price band.

“In terms of apartments, Gateway is very popular among first-time buyers who are seeking entry-level options at around R1m to R1.5m for a one-bedroom apartment. uMhlanga beachfront and lower La Lucia offer luxury upmarket living on the beach with direct access and so prices for townhouses in these nodes range from R4m upwards to around R15m. Penthouses along the beachfront attract a discerning buyer but hold their own in terms of value, with most fetching around R15m to R20m, depending on area and condition. We have several luxury homes on our books in exclusive estates like The Executive in La Lucia, and Gold Coast in Sibaya, which are exceptional properties with modern finishes, sweeping sea views and excellent security – with four and five-bedroom mansions priced from R15m to R25m.

“While we have seen an uptick in activity, the luxury market is very discerning and price sensitive. Buyers at this level are astute and have done their research, so they will seize the opportunity to purchase a correctly priced home, but won’t acquire anything that is over-priced, therefore correct pricing is key for sellers.”

Reynolds adds that although the North Coast region is often perceived as expensive, there are pockets in this northern coastal belt where apartments can be bought from R1m – R1.5m for a one-bedroom unit, with an entry-level price for a two-bedroom unit being around R2m. Small three-bedroom homes start at around R2.8m in areas like Glen Anil and Glen Hills and central Durban North homes start from around R3m.

In ever-popular Durban North, a new, upmarket boutique estate, Vivant Monteith, comprising only six or seven freestanding homes is about to be launched, marketed by Pam Golding Properties. All the homes will have sea views, four bedrooms, four bathrooms and staff accommodation. Says Reynolds: “This is a rare opportunity as there is no land available in upper Durban North, so we anticipate a rapid sell-out. Plots will sell from approximately R3.5m and plot and plan options will be available at various prices.

“Meanwhile just launched is a new ‘mini’ Sun City’ development, Oasis Sibaya, adjacent to the casino in the secure, privately managed Sibaya precinct, comprising a total of 348 stylish apartments in six buildings with premium one, two and three-bedroom apartments with drive-up access priced from R1.9m, R3.76m and R6.11m respectively.

“With 30% of the 60 units in phase one reserved on launch day – with further reservations coming in daily, this R1.2b resort-style, pet-friendly residential development with unique amenities is in an ideal location just two minutes from the M4 and N2 highways. The development offers a unique array of benefits in that investors will be able to enjoy the amenities available at the Sibaya Casino including restaurants, sports facilities, wellness spa and the casino itself. The gated development site is elevated with beautiful sea views, its own pool and entertainment area as well as padel courts and walking trails.”

Adds Reynolds: “According to Lightstone data, approximately 13% capital appreciation has been achieved per annum on the average median price of sectional title sales within the Sibaya Coastal Precinct from 2020 to 2023. This means as an off-plan development, your purchase value grows while Oasis Sibaya is being built within the estimated two-year construction phase, with bond repayments only commencing on completion – all while only having put down a deposit.”

Issued by: Gaye de Villiers on behalf of Pam Golding Properties