One province ready for an investment boom

Coastal living remains incredibly popular in South Africa, with coastal house price inflation rising to 5.7% in May 2025, according to Lightstone statistics.

Demand for these homes is driving strong growth in areas north of Durban, such as uMhlanga and Ballito, where secure estate living is increasingly sought after for both lifestyle and investment reasons.

Pam Golding Property Group CEO Dr Andrew Golding said homes in appealing lifestyle estates often enhance value because they offer what the market is seeking.

This means that purchasing in a reputable, well-located and managed estate can be a prudent investment. If the goal is to rent the property out, it is also likely to attract a quality tenant.

“The KZN North Coast strip has proven extremely popular, with areas like Durban North, La Lucia, uMhlanga, Sibaya, and Ballito sought after for their variety of estates,” Golding said.

This region is home to numerous secure, high-end lifestyle estates, explained Gareth Bailey and Carol Reynolds, Pam Golding Properties area principals in the uMhlanga and Durban North areas north of Durban.

David Cameron, the company’s area principal in Ballito, explained that there has always been a leaning towards gated estates in this coastal region, and more are popping up.

“Such is the demand that homes within secure estates command a premium of 30% over freehold homes outside estates,” Cameron said.

“Out of the established estates, Simbithi has been the most consistent over the past four or five years, with Zimbali, Brettenwood, Palm Lakes and Dunkirk rounding off the top five.”

However, Cameron said there has been a large shift in the market to Seaton and Zululami, given the high lifestyle appeal of being able to walk off your estate onto Christmas Bay beach.

“This demand is coupled with the facilities and infrastructural improvements made by the developers in the area, which boosts buyer confidence and demand,” he said.

Coastal estate boom

Reynolds added that secure estates such as Gold Coast, Hawaan Forest and Izinga are also experiencing increased demand.

“Johannesburg commuters are seeking a beach lifestyle and want to invest in secure family homes within estates here so that their children can grow up near the beach in a more relaxed environment,” she explained.

In 2024, pricing reached the bottom of the cycle during 2024’s pre-election period, but a positive uptick is currently underway.

“The more traction KwaZulu-Natal gains with all these exciting developments, the more prices will escalate,” Reynolds explained.

For example, in 2024, Pam Golding had an oversupply of stock, with some properties sitting on the market for six months or more.

“However, this year, we have sold several properties within one week of listing, and in a few cases, even had multiple offers on each property,” she said.

“As soon as buyers compete for stock, prices start to escalate, and currently, we are beginning to see the shift out of a buyers’ market into what might become a sellers’ market.”

Reynolds said that as estates drive prices upwards, freestanding homes also gather momentum with those who cannot afford estate living.

New buyers are upgrading and renovating grand old homes, modernising and restoring more established suburbs like Durban North to their former glory.

“These upgrades then drive the prices up in suburbs like Durban North, increasing the value of residential property assets.”

Cameron added that there are many options to choose from across the variety of estates along this coastline, each with its own appeal, which enables buyers to select the best lifestyle for their particular stage in life.

“Successful estates need to incorporate a wide range of products that speak to all price bands to ensure ongoing interest across all markets,” she explained.

“There’s always a demand for good investment buys on the beachfront, and compared to last year, we are seeing more movement around the R3 million to R5 million price band.”

However, Cameron said the sweet spot in the Ballito area and surrounds seems to be freestanding homes within a gated estate, priced between R6 million and R8 million.

With that said, many younger families are looking to buy residences in more accessible priced estates.

This includes One on Seaton, which offers sectional-title apartments priced from R3.7 million to R7.5 million, and Serrano Estate in Seaton, where sectional-title apartments with sea views range from R4 million to R11 million.

Salt Rock City is also ideally located, with shopping centres already built, vacant land starting from R950,000, and plot and plan options priced up to R4.5 million for freestanding homes.

Luxury buyers flock to KZN

Notably, Cameron said land sales in Seaton are extremely active, with front-row homes on the beach almost all sold at prices up to R15 million.

“We recently concluded the sale of a home in Zimbali for R19 million and sold a vacant plot of 1,904sqm in Colwyn Drive, on the beach in Sheffield Beach, Ballito for R14.25 million,” he said.

Positively, construction on the Seaton Interchange project has commenced, which, when completed, will alleviate congestion and facilitate access to developments in this region.

“As development progresses, coupled with the positive sentiment in the market regarding Sheffield and Salt Rock, we are finding local residents and those from elsewhere buying into these areas slightly further north,” he said.

“While our buyers comprise a large contingent from out of town, balanced by those relocating within Ballito, we are currently receiving many international enquiries.”

Cameron said this is undoubtedly a result of the new Club Med, which will open in 2026.

Reynolds added that foreign buyers along this coastline also tend to invest in secure estates or secure apartment blocks.

This is because KZN offers much better value than the Cape without the traffic congestion that impacts cities like Cape Town and Johannesburg.

“Developments like the Sibaya precinct are facilitating privately managed nodes catering for the new estates by expanding the suburban infrastructure to include hospitals, schools, hotels, retail centres and commercial office parks,” she said.

The Sibaya coastal precinct has experienced significant growth, offering a mix of luxury apartments and homes with modern amenities that appeal to high-net-worth individuals looking for sound investment opportunities.

The affluent are also drawn to freehold homes in secure estates like Izinga, Signature and Hawaan Forest Estate.

Luxury beachfront apartments and penthouses in developments such as The Pearls of uMhlanga also offer premium amenities and strong capital appreciation.

The demand for Sibaya will continue as plans unfold for new infrastructure, which includes a commercial and retail hub, beach clubs, a school and a private, secured lifestyle in a fully managed precinct.

Hawaan Forest and Izinga are ideally located in the heart of uMhlanga, close to schools, hospitals and the uMhlanga business district.

Reynolds said that currently, The Executive in La Lucia achieves prices in the R20 million range, and Hawaan Forest Estate sees prices in excess of R15 million.

New nodes like Sibaya are partnered with upmarket estates like Gold Coast and Signature, the latter offering entry-level homes starting at around R20 million and reaching over R50 million.