Prime land up for grabs in one of South Africa’s richest coastal cities

Several “lucrative” land parcels in Umhlanga are going under the hammer, where increasingly affluent buyers are snapping up property.

High Street Auctions is selling land parcels with a combined area of 33,000 sqm and development rights that include mixed-use commercial and residential, allowing for the construction of more than 920 homes.

The KwaZulu-Natal (KZN) property market has faced several challenges over the last several years, including the COVID-19 pandemic, the 2021 July unrest, and the 2022 floods.

However, High Street Auctions Director Greg Dart said the property market’s recovery since the election and the formation of the Government of National Unity has created a bullish sentiment, with many developers registering interest in bidding for these valuable lots.

Last year, Pam Golding Properties’ Carol Reynolds said that property sales in Umhlanga, as well as Durban North and Sibaya, were buoyant.

Umhlanga, along with Durban and Ballito nearby, is one of the wealthiest areas in South Africa, home to thousands of dollar millionaires.

“Johannesburg and other Gauteng buyers often look to buy in estates because of the security but also tend to acquire the larger mansions in the upper Durban North node,” said Reynolds.

“Interestingly, we have seen a resurgence of interest in spacious, grand mansions, which are priced in the R10 million-plus price bracket, many of which are located in upmarket estates in uMhlanga and Sibaya.”

uMhlanga is also attractive due to its good schools, beaches and access to the Gateway shipping centre.

“Greenfields land in this fast-developing node around the Gateway Shopping Centre is finite, and with the property sector rebound already starting, developers who want a piece of this exclusive suburb should move now before the pendulum swings heavily back to a seller’s market,” said Dart.

“The land cluster High Street Auctions will knock down comprises six individual sites, four of which have development rights in terms of Special Zone 11: Umhlanga Ridge New Town Centre.”

“In terms of the Development Framework for the area, over a 20-year period, total development of 633,000 sqm is envisioned, much of which has already been built.”

Thus far, portion 191, an over 7,000 sqm lot that comprises an entire block, has received widespread interest.

Portion 191 will allow for a mixed-use development as well as 274 residential units. The eventual envisaged bulk for this site is 15,655sqm.

Dart added that the other development land parcels—portions 130, 139, and 153—are earmarked for substantial cluster housing construction, with over 600 residential units potentially built across all three plots. Sales at this scale could be highly lucrative.

Lightstone data showed that 91 residential transfers occurred between April and June this year, with a total value of R134,612,906. The average price per sale was R1,479,262.

“The Umhlanga area of KZN is one of only a few in the province that has proved resilient to the downswing that has depressed the property market across much of the country in recent years,” said Dart.

“Given how active this market has remained despite myriad challenges, the prospects are outstanding for new developments in planning now.”

High Street will auction the land parcels at noon on Thursday, July 25, 2024, at the Bryanston Country Club, Johannesburg.

Images of the land parcels can be found below:

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