Surprise boost for one of South Africa’s biggest coastal property markets

The Seeff Property Group is optimistic that the formation of the Government of Provincial Unity (GPU) will boost the property market in KwaZulu-Natal.

The surprise package of the 2024 national election was the Jacob Zuma-led MK Party. The party got roughly 15% of the vote in the national election and a staggering 45.35% in KwaZulu-Natal.

While the MK emerged with a stellar performance in its debut election, there was no outright majority winner in the province, which raised flags about unstable governance and what this would mean for the local market.

The IFP received the second-highest share of the vote, 18.07%, while the ANC lost its majority, with only 16.99% of the vote.

In a surprising turn of events, the ANC, IFP and the DA (which had the fourth-highest vote count in the province) managed to narrowly wrest control from the MK party and form a GPU.

The three parties, which formed part of the broader Government of National Unity (GNU), joined forces alongside the National Freedom Party (NFP) to create the GPU, representing each party in the provincial cabinet.

With the addition of the NFP’s single seat in the province, the GPU acquired 41 out of the 80 seats in the KZN legislature.

Agents from the Seeff Property Group said prospects turned in an instant, and there is now a renewed hope that a more effective and responsive government in KwaZulu-Natal—coupled with better service delivery—could significantly benefit the province’s property market.

The coastal areas, in particular, have faced many challenges over the last three years, such as riots, floods, and poor service delivery.

The KZN coastal property market has also been hurt by weak economic growth and persistently high interest rates.

“A recovery in service delivery in areas such as the South Coast could be just the catalyst that the market needs to regain the momentum that it had prior to the pandemic,” said Seeff.

“By implication, now may well be a good time for buyers to head to the coastal towns of the South Coast.”

Despite the increase in sales when the interest rate environment was at 7%, price growth has been muted.

For those looking for good value and a healthy coastal lifestyle, the KZN South Coast may be a solid bet, as most sales fall below R1.5 million.

Joleen Giraudeau, manager for Seeff South Coast, said buyers could also find excellent value compared to other coastal areas.

The South Coast also boasts a warmer climate and has the highest number of Blue Flag beaches in KZN.

Moreover, the South Coast is dotted with small, popular tourist towns, including Amanzimtoti, Umkomaas and Scottburgh to Pennington, Hibberdene, Port Shepstone, Shelley Beach, Margate, Southbroom and Port Edward.

The opportunity to enjoy a slower lifestyle and live in a holiday resort town is also a big motivator for most buyers, with most of the towns also having basic facilities and schooling.

On top of this, all the towns enjoy easy proximity to the Durban Metro, with the farthest being Port Edward, roughly two hours away.

The South Coast offers attractive property prices and a good selection, including apartments, townhouses, freestanding houses, and small businesses. Most offer easy access to beaches and amenities.

The Covid-19 pandemic also boosted migration from Durban to the coastal towns, as many wanted a healthier lifestyle.

These small towns are also popular with out-of-town buyers for holiday homes and for retirees.

Affordability and lifestyle are two of the biggest advantages of the KZN South Coast property market

With fewer buyers, sellers who are still overpricing will need to be more realistic with their asking prices, potentially boosting activity.

Read: How much money nurses earn in South Africa in 2024