Residential areas like La Lucia, uMhlanga and Durban North in KwaZulu-Natal are in high demand because they offer an array of amenities.
This is according to Carol Reynolds, area principal for Durban Coastal, Pam Golding Properties.
Upmarket Sibaya also continues to gain traction, considering its proximity to King Shaka International Airport as well as the new infrastructure, including the new Marine Walk shopping centre.
Reynolds said that there has been a rise in residential property activity with the number of excellent schools in the region buoying the housing market, as a consistent flow of young families move 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,” Reynolds said.
“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, while the climate, with its year-round sunny weather, continues to make the coastal areas highly appealing.
Upcountry buyers are also investing in second or holiday homes along the coastline, with around 50% of investment buyers coming from Gauteng, Reynolds said.
There has also been increased interest from foreign buyers, including a number of German purchasers who have acquired homes in Durban North and uMhlanga, plus there has been ongoing stream of Dubai purchasers looking to invest in KZN.
Overall, most buyer activity is local, due to lifestyle changes or changes in area needs.
Reynolds said: “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.”
According to Reynolds, 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,” Reynolds said.
“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.”
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.
Areas like uMhlanga beachfront and lower La Lucia offer luxury upmarket living with direct beach access so prices for townhouses in these areas range from R4 million to around R15 million.
According to Reynolds, penthouses along the beachfront attract discerning buyers, but hold their own in terms of value. Most of them fetch around R15 million to R20 million, depending on the 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 R15 million to R25 million,” Reynolds said.
Buyers in the luxury market 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. This means that correct pricing is important for sellers.
According to Reynolds, the North Coast region is often perceived as expensive but there are apartments that can be purchased from R1 million to R1.5 million for a one-bedroom unit while the entry-level price for a two-bedroom unit sits at around R2 million.
Small three-bedroom homes start at around R2.8 million in areas like Glen Anil and Glen Hills, while central Durban North homes start from around R3 million.
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