Location convenience and proximity to quality schools, retail centres, and medical facilities are top priorities for many residential property buyers.
Additionally, there is a growing preference for secure estate living, notes Carol Reynolds, a Pam Golding Properties area principal for Durban Coastal.
As a result, residential areas like La Lucia, with its secure estates and complexes, uMhlanga, and Durban North are in high demand.
Meanwhile, the upmarket Sibaya area is also gaining traction due to its proximity to King Shaka International Airport and new infrastructure, including the Marine Walk shopping centre, appealing to those seeking a pristine, managed precinct.
Another positive indicator for areas north of Durban is the significant improvement in the Durban Business Confidence 2024 Q2 report, which shows an increase of 17.07 index points, rising from 38.42 in Q1 to 55.49 in Q2.
"The optimistic sentiment from the recent international trade forum held in Durban, along with the shift in municipal leadership focusing on service delivery, investment, and growth, bodes well for the residential property market," said Reynolds.
“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 the area given that the prices for property in the Cape are much higher.
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 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 said many primary home buyers are seeking secure living with work-from-home office space.
The most buoyant price band is between R3 million and R6 million, 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.
“In terms of apartments, Gateway is very popular among first-time buyers who are seeking entry-level options at around R1 million to R1.5 million 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 R4 million upwards to around R15 million.
“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 added 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 R1 million – R1.5 million for a one-bedroom unit, with an entry-level price for a two-bedroom unit being around R2 million.
Small three-bedroom homes start at around R2.8 million in areas like Glen Anil and Glen Hills and central Durban North homes start from around R3 million.
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. Plots will sell from approximately R3.5 million 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 R1.9 million, R3.76 million and R6.11 million respectively.
“With 30% of the 60 units in phase one reserved on launch day – with further reservations coming in daily, this R1.2 billion 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.
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," said Reynolds.
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