Investment boost in KZN fuels residential property demand north of Durban

Sentiment in the residential property market in the coastal areas north of Durban has improved markedly since the start of 2025, says Carol Reynolds, Pam Golding Properties area principal for Durban Coastal.

This is borne out by several meaningful investments in this region, including the R2 billion Club Med South Africa beach resort development in Tinley Manor, the R20 billion expansion of the Sibaya precinct by Devmco – who have taken over this development, and with local and multinational companies recently pledging to invest some R75.8 billion in new property developments and manufacturing plants across the province over the next two years during the recent KwaZulu-Natal Investment Conference.

Says Reynolds: “We have seen a noticeable uptick in residential market activity across all price bands – including the luxury market – since January this year (2025). In fact, January was one of our busiest months, which is unusual for this time of the year when buyers are normally more focused on settling back into their school routines.

“Overall, market sentiment has improved with the positive news about Club Med and the Sibaya precinct. Sibaya is set to become a secure precinct offering a mix of retail, commercial and residential outlets as well as iconic Five-star hotels. The plans for the precinct are very exciting for KZN, with private walking trails, secure beach clubs, sports facilities, a new school, among other amenities.

“Currently we have interest from Dubai residents in the Sibaya precinct, especially some of the frontline sites in Signature Estate. We are also seeing the return of Johannesburg buyers who are finding Cape Town prices too high and hence are revisiting the value proposition offered here in KZN.”

Encouragingly, there is also evidence of a recovery in planned residential building activity in KZN, with the total number of plans passed rising by just over 39% in 2024, lifting the region’s share of the total national number of residential plans passed to 11.6% – up from just 7.2% in 2023. (Source: Statistics SA)

Says Reynolds: “The areas of uMhlanga, La Lucia and Durban North are extremely well-positioned to benefit from heightened interest and investment in the region, being prime coastal areas which offer centrally located, highly appealing locations with an ideal year-round climate. These provide easy access to all the varied attractions the province offers including beaches, game reserves, the Drakensberg Mountains, and numerous others.

“One of the factors that continues to drive demand in these areas is the ease of living – no traffic congestion, everything conveniently on your doorstep, including good schools. Positively for first-time buyers, such as young professionals, we have options in the Gateway area that start at just over R1 million.

“It is interesting to note that activity is by no means limited to the lower to middle price band – we are seeing activity in the housing market across the board. Many upcountry buyers are seeking homes in coastal estates, as they want security, sea views and proximity to the airport, and are looking in the price band between R7 million and R12 million. Estates like Hawaan Forest, Izinga and Gold Coast are attracting interest. Some of our clients who built homes in new estates like Gold Coast have experienced sound capital appreciation and have managed to flip for a profit. The key is to buy well and add value cleverly to maximise profits.”

Reynolds adds: “We are also seeing considerable movement from Durban’s Morningside and the Berea into Durban North, with the schools in this area continuing to drive demand. These are generally families looking for larger homes in close proximity to the schools. Upper Durban North retains its appeal with its security patrols and large, graceful homes.

“Umhlanga continues to attract a mix of retirees, investors and young professionals, with the frontline blocks like the Pearls and Edge of the Sea popular with both local and upcountry buyers. Here we have seen interest from German buyers as well as buyers from Dubai. We are hopeful that with Club Med coming soon, and the addition of new direct international flights like Air France, we will start to see our province gaining momentum on the international stage.”

Demand for high-end homes

Illustrating the value for money to be had in the residential property market, Pam Golding Properties recently sold a four-bedroom (all en-suite) luxury mansion in prime position right on the beachfront in uMhlanga to a local buyer for close to R17 million. The property includes staff accommodation.

Says Reynolds: “Had this exquisite home been situated in Clifton, Cape Town, it would probably have achieved a price in excess of R100 million. We have also just sold an exceptional six-bedroom home in sought-after The Executive Estate in a prime location in La Lucia and with sweeping, scenic views, for R20 million. This property was also acquired by a local buyer.”

For further information contact Pam Golding Properties Durban North 031 573 6000 and uMhlanga office on 021 561 5300.

Posted by The Know - Pam Golding Properties