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Why the KZN South Coast property market is gaining investor attention

Staff Writer
Estimated reading time: 3 minutes

The KZN South Coast is experiencing renewed interest in the property market, with growing demand from both local buyers and returning South African expats, according to property group, Wakefields.

Enquiries for homes along the scenic coastal stretch from Pennington to Clansthal have surged, signalling the region’s appeal to those seeking quality lifestyle and property investment opportunities.

Shift in Market Trends 

While the South Coast was traditionally popular for properties around the R700,000 mark, agents are now reporting a shift towards the R1.2 million range.

This is driven in part by tougher bond conditions, leading to more cash offers and larger deposits to secure bond approvals.

The region is also seeing a growing preference for move-in-ready homes or properties with second dwellings for extended family or income generation.

The trend of purchasing a fixer-upper and renovating is declining as buyers increasingly seek convenience and flexibility.

With the South African Reserve Bank’s recent interest rate cut, the prime lending rate now stands at 11.25%.

This small adjustment could have a big impact on the property market, creating exciting opportunities for both homebuyers and investors, according to Myles Wakefield, CEO of Wakefields Real Estate.

Over the past few years, South African buyers have faced rising interest rates, higher inflation, and economic uncertainty. But the tide is turning, he said.

The Monetary Policy Committee’s 25-basis-point rate cut offers more than just relief-it’s a sign of better days ahead for the property market.

“This rate cut is the beginning of what we believe could be a sustained improvement in the property market,” said Wakefield. “Acting now means locking in a great deal before buyer demand inevitably picks up and prices rise.”

Value for Money & Lifestyle Appeal 

The South Coast continues to stand out as a value-for-money destination for property investors, said Wakefields. Prices in this area remain far more accessible compared to other regions, while still offering an unmatched lifestyle.

The area is renowned for its relaxed pace, warm climate, and long summers, with pristine beaches that attract surfers, snorkelers, and anglers alike.

The region’s proximity to Durban-just 45 minutes away, also makes it a convenient retreat for those looking to escape the hustle of the city.

This has led to an influx of retirees and holiday-home buyers from inland provinces like Gauteng, many of whom plan to make the South Coast their permanent residence in the future.

One of the major catalysts for the South Coast’s property resurgence is ongoing development. The multi-billion-rand

Renishaw Coastal Precinct

in Scottburgh is one of the country’s most ambitious projects.

The first phase has already seen significant property value increases, and future phases include residential development, a shopping centre, a private school, and a church. This growth is drawing interest from investors looking to capitalise on the area’s potential.

The Government of Provincial Unity (GPU) has also boosted optimism for the region, working with local municipalities to stabilise service delivery, while infrastructure projects like the R20 billion

Umkhomazi Water Project

progress steadily.

Plans for road upgrades and enhancements to beachfront areas are expected to further elevate the region’s appeal.

Looking ahead, economists predict further rate cuts over the next year. Historically, rate-reduction cycles have driven increased demand, leading to price growth in property markets across the country. By purchasing now, you’re not just securing a home-you’re making an investment poised to grow.

Banks, too, are competing for market share, offering low-deposit requirements and attractive financing packages. For first-time buyers and investors, these conditions create a perfect storm of opportunity.

With its mix of affordability, lifestyle appeal, and exciting growth prospects, the KZN South Coast is poised for a property market boom. Whether you’re looking for a holiday home, a retirement haven, or a solid investment, this region is worth watching, said Wakefields.

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