The latest Rainmaker Marketing Property Market Report offers a comprehensive look into the dynamic real estate landscape on the high-performing regions of Umdloti and Umhlanga, situated North of Durban, KwaZulu-Natal (KZN). Both areas have become benchmarks in KZN’s property market, with Umhlanga consistently ranking as a premier neighbourhood and the Sibaya Coastal Precinct has ranked as one of the top neighbourhoods with properties exceeding R1m by Lightstone.
Town and suburb performance insights: We look into the growth, development and status of key towns like Umdloti and Umhlanga, as well as suburbs like the Sibaya Coastal Precinct, Umhlanga Rocks, Umhlanga Ridgeside and Umhlanga Ridge Town Centre.
Population growth analysis: The report explores how these areas are in terms of population, with Umhlanga and Umdloti expected to see significant growth over the next decade.
Key market data: The report explores information on household incomes, recent buyer activity, market stock, and overall property performance.
Key projects are driving KZN’s real estate market forward. The Durban Aerotropolis, centred around King Shaka International Airport (KSIA), has become a vital hub for business, trade, and tourism. The Aerotropolis includes the Dube TradePort (DTP), which has attracted R4.6 billion in private sector investment, and the KSIA, South Africa’s third-busiest airport. These developments provide swift connections between suppliers, consumers, and industries, boosting the region’s economic potential. In 2023/2024 there was a 356% increase in international travellers rising from 60 273 in 2021/22 to 274 882 in 2023/24. While domestic arrivals are rising from 3 147 204 in 2021/22 to 4 706 511 in 2023/24.
According to Statistics South Africa, KZN’s private sector building activities reflect a growing positive sentiment in the property market. By May 2024, the total value of building plans passed increased by 20%, with residential building plans surging by 53% compared to the previous year. This boom demonstrates the increasing demand for property and investment opportunities in the province.
Umhlanga continues to thrive, known for its luxury residential properties and vibrant business sector. The area is strategically positioned near major highways, significant commercial development, modern amenities and healthcare facilities.
Umhlanga’s predominant price range for sectional title sales in Umhlanga Ridgeside falls between R1.8 million and R3.5 million, while Umhlanga Ridge Town Centre prices for sectional title sales range between R800,000 and R1.5 million.
Situated in Umdloti, the Sibaya Coastal Precinct is now recognised as one of South Africa’s top suburbs for homes priced over R1 million according to Lightstone, competing with well-established areas like Bryanston and Sea Point. In 2023, Sibaya saw 419 homes sold, totalling R1.071 billion in value. Research highlights that High Net Worth Individuals are increasingly favouring luxury coastal destinations, further elevating Sibaya’s desirability.
The majority of sectional title sales in Sibaya fall between R3 million and R5 million.
With 70% of sectional title sales (both in and out of estates) properties priced between R3 million and R5 million within estates sold at a 19% premium compared to those outside.
The Sibaya Coastal Precinct is seeing significant population growth, with an average of 71 new adults relocating to the area each month, equating to roughly 28 new families. Similarly, Umhlanga Ridge Town Centre is attracting an average of 42 new adults monthly, appealing to both professionals and families seeking a secure and luxurious lifestyle.
One of the most notable trends in the report is the rise in household incomes across the Northern KZN coastal regions. Since December 2021, household incomes in both Sibaya Coastal Precinct and Umhlanga Ridgeside have soared by 177%. Umhlanga Rocks, already a well-established suburb, has experienced a more modest but steady increase of 37% due to it already having a premium status.
The prevailing age bracket for buyers across these northern coastal areas is between 36 to 49 years, showing the strong appeal of these areas to young professionals and families. However, Umhlanga is slightly different, with a more dominant buyer age group of 50 to 64 years. This trend suggests that both younger families and older, experienced buyers are equally attracted to the region’s lifestyle, convenience, and secure estate offerings.
In terms of property sales, the Sibaya Coastal Precinct leads with a total sales value of R1.071 billion between July 2023 and June 2024. Umhlanga Rocks follows with R806 million, emphasizing the ongoing demand for luxury properties.
Sectional Title sales in the Sibaya Coastal Precinct fall predominantly within the R3 million to R5 million range, with buyers willing to pay 19% more for secure estate living. Meanwhile, Umhlanga Ridgeside properties are priced between R1.8 million to R3.5 million, appealing to professionals looking for a blend of coastal and urban living.
With significant infrastructure projects in the pipeline and sustained investment, the property markets in Umdloti and Umhlanga are poised for continued growth. The Sibaya Coastal Precinct and Umhlanga suburbs stand out as prime investment destinations, offering luxury living and strategic access to key economic corridors. Investors and homebuyers alike can expect these areas to remain at the forefront of South Africa’s real estate market.
Gain full, in-depth detail behind Umdloti and Umhlanga in our latest Property Market Report.
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