Positive turn for coastal property in KZN

The property market in KwaZulu-Natal’s Mid-South Coast is beginning to see a turnaround, with buyer enquiries notably spiking following the May general elections.

This is according to Jo Giraudeau, manager for Seeff Mid-South Coast.

She said that agents in this area have noticed quite the uptick in South African expats returning to the country, and enquiring about residential properties between Pennington and Clansthal over the past several months.

“Mid-South Coast still offers the best value for property buyers and investors with prices which are far more accessible compared to other areas,” said Giraudeau.

“The lifestyle offering is unmatched with a slower pace, warmer climate and long summers, and the warm, Indian Ocean.”

“The area is renowned for its fabulous beaches including some of the country’s best surfing beaches, fishing, snorkelling, body boarding, and rivers and lagoons,” with the property group finding that people investing in a holiday home in the area mainly do so with the view to later settling there for their retirement, said Giraudeau.

Seeff’s manager notes that buyers now prefer move-in ready homes or properties with rental potential, shifting demand from around R700,000 to R1.2 million.

There are numerous reasons given for the uptick in demand.

The rise in demand is driven by significant development in the area, including the multi-billion-rand Renishaw Coastal Precinct, which Giraudeau said has already increased property values. Future plans include a shopping center, filling station, private school, and church.

Community involvement is also evident, with regular community clean-up and restoration initiatives, and regular beach cleanups as part of the Conservancies KZN movement.

There is also the Sapphire Coast Tourism project which promotes attractions and facilities in the area.

Additionally, the property expert said that the formation of the multiparty Government of Provincial Unity, increased cooperation between Cooperative Governance and Traditional Affairs (COGTA) and municipalities, along with the R20 billion uMkhomazi Water Project and long-term Umkhomazi Local Area Plan, are expected to enhance service delivery and infrastructure, further boosting property interest.

She also added that positivity is also building further on the back of a potential interest rate cut in September.

Some star attractions

Giraudeau highlighted some key attractions in the area.

Clansthal, a small residential area between Scottburgh and Umkomaas, features Clansthal Beach and the Green Point lighthouse, which warns of the Aliwal Shoal reef.

It attracts mostly older buyers and tenants, with about 149 properties, 80% of which are freehold, and a median value of R2.5 million.

Rental prices average R8,000 for sectional titles and R10,000-16,000 for freehold properties, with high yields of nearly 10% for sectional titles and 6.5% for freehold.

The most exclusive property on Green Point Drive, listed for R15.85 million, offers direct beach access, a large coastal-style house with seven bedrooms, three flatlets, and luxury features like underfloor heating, solar backup, and a swimming pool.

This property is ideal for Airbnb investment, a guest house, or a residential/holiday home.

Read: What you need to earn to afford the average house price in each province in South Africa