KZN coalition government prospects boost coastal property outlook

There is renewed hope that a more effective and responsive government in KwaZulu-Natal, coupled with improved service delivery, could significantly benefit the province’s property market, say agents from the Seeff Property Group.

The coastal areas, in particular, have dealt with many challenges over the last three years such as the riots, floods and poor service delivery. Combined with the weak economic growth and persistently high interest rates, the impact has been felt in the KZN coastal property market, say the agents.

A recovery in service delivery in areas such as the South Coast could be just the catalyst that the market needs to regain the momentum that it had prior to the pandemic. By implication, now may well be a good time to for buyers to head to the coastal towns of the South Coast.

Despite the surge in sales when the interest rate was at a 7% low, price growth has been muted. If you are looking for good value and a healthy coastal lifestyle, then the KZN South Coast is a solid bet considering that the majority of sales fall below R1.5m. Buyers are able to find excellent value when compared to other coastal areas, says Joleen Giraudeau, manager for Seeff South Coast.

The South Coast with its warmer climate boasts the highest number of Blue Flag beaches in KZN. It is dotted with small, popular tourist towns such as Amanzimtoti, Umkomaas and Scottburgh to Pennington, Hibberdene, Port Shepstone, Shelley Beach, Margate and Southbroom, all the way down to Port Edward.

Ms Giraudeau says the opportunity to enjoy a slower lifestyle and live in a holiday resort town is a big motivator for most buyers. Most of the towns have basic facilities and schooling. As a bonus, the towns all enjoy easy proximity to the Durban Metro with the farthest being Port Edward, about two hours away.

The South Coast offers attractive property prices and a good selection to choose from including apartments, townhouses, freestanding houses as well as small businesses. Most offer easy access to beaches and amenities.

The pandemic boosted semigration from the Durban metro as people flocked to the coastal towns for a healthier lifestyle. These towns are also popular with out-of-town buyers for holiday homes, as well as for retirement.

Affordability and lifestyle are two main advantages of the KZN South Coast property market, says Ms Giraudeau. In the Mid-South Coast area which includes towns such as Scottburgh and Amanzimtoti for example, most sales are concluded below R1.5m with properties above this taking longer to sell, according to Debbie du Toit, an agent with Seeff Mid-South Coast. With fewer buyers, sellers who are still overpricing will need to be more realistic with their asking prices, she adds.

That said, prices have reached R1.75m (Dunewood), R2.4m (Cod Crescent), and R3.5m (Douglas Road), all in Pennington. Pennington offers particularly good value as the agent says you can find a freestanding house for less than R1m.

Tracey Cronje, an agent with Seeff Hibiscus Coast (which covers areas such as Shelley Beach, Ramsgate and Port Edward), says while sales have slowed, the year was off to a good start. Affordability is characteristically good in the area with most sales between R1.1m and R1.5m, and average rentals between R7,000 to R10,000 per month.

The highest prices paid over the last year include R3.045m in Shelley Beach (Bay Hill Estate), R2.8m in Ramsgate (Wedge Road), and R2.3m in Port Edward (The Estuary).

Writer: Gina Meintjes