Despite stiff competition from the Atlantic Seaboard, Durban is attracting investors looking for coastal holiday homes.
FNB’s latest property barometer shines a light on where people are purchasing additional property as holiday homes. Despite slowed growth in the property sector all round, Durban was one of the regions which is experiencing growth in this area.
Overall, this sector has seen a jump of 2.5% at the end of 2019, perhaps driven by the lower repo rate or the banks ease at granting bonds of late. Cape town, and moreover the Atlantic Seaboard has always commanded high property prices and attracted a wealthy niche market from South Africa and abroad. However, the data shows there is an increasing move towards Durban of late.
Umhlanga KZN now commands the 2nd most expensive price-per-square-metre in South Africa, after Cape Town and ahead of Sandton. Despite economic challenges as well as negative sentiment in some corners, there is still activity in the residential property market with some surprising outcomes. Coastal property remains ever attractive and has managed to retain value with a lot more interest coming from buyers in Gauteng.
Durban overall is undergoing its own transformation with plenty growth along the North Coast. Ballito has had a population boom in the last decade, and many are now choosing to make the suburb home as it offers a choice of secure residential estate properties across a range of price points with modern and essential amenities in close proximity. Moving a little southwards, new growth areas include the Sibaya Coastal Precinct, which just by sheer velocity and value of sales is the country’s best performing residential precinct. There is a lot more to come in the precinct which will ultimately become its own city with an array of home types and price points, schools, retail piazzas, sports amenities, a private university and even its own internal thoroughfare and shuttle service.