uMhlanga is the new wealth hub for the KZN region as buyers are investing in high end villas and apartments and buyers are now flocking here from all over, says Brett Botsis, director for Seeff uMhlanga. The result has been that the property market has not only held up well, but is still performing better compared to the pre-pandemic period.
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The area is fast becoming one of the most sought after coastal regions for its warm ocean and sub-tropical climate. It is fronted by the stunning uMhlanga waterfront with its landmark Whalebone Pier and Lighthouse, among the most photographed by visitors.
There are hotels such as the Oysterbox along with Airbnbs, holiday apartment blocks, and a choice of modern luxury homes, villas, and beach apartments. The bustling commercial centre includes business parks, offices, and retail including the Gateway Theatre of Shopping mall.
Transaction volumes
uMhlanga now has a bustling commercial and residential real estate market, and Botsis says it offers opportunities across the board, and buyers and investors are taking advantage. It is also not just locals, but buyers are coming from Johannesburg and elsewhere, and increasingly international buyers and investors, he says.
Despite the broader property market challenges, Lightstone data shows that transaction volumes for last year ended still well ahead of the pre-pandemic years, boosted primarily by sectional title sales which make up about 78% of all transactions.
For the 12-month period to the end of September 2024, there are already well over 1,000 transactions to the value of over R2.85 billion at an average transaction price of R2.8 million recorded for uMhlanga.
This includes a number of transactions above R5 million ranging to R18.75 million for a luxury home with the highest prices paid in estates such as Hawaan Forest Estate and Izinga.
Oyster Quays – one of the many complexes offering fabulous beach apartments priced from around R6.5m to R8m for a three-bed apartment.
High value sales
High value sales above R5 million were also predominantly concluded for apartments. These were mostly in complexes such as La Palma Terraces, Longbeach, Ipanema Beach, Oyster Rock, Oyster Quays, Sea Lodge, Seashore, Edge of the Sea and Casa Blanca.
The average freehold house price stands at around R4.4 million and at R8.6 million for houses in the estates. Sectional titles average around R2 million to R5 million.
The median house price for uMhlanga now stands at around R4.225 million which is about 14% up since the pandemic, and about 45% up over the last ten years. The majority of buyers making up 64% of all sales over the last year were under 50-years old with about 22% under 35-years of age.
Air of positivity
Botsis says there is an air of positivity returning to the Durban Metro as results of the commitment to services by the Government of Provincial Unity (GPU) are starting to filter through. This should further encourage buyers to get into the market while prices remain fairly flat.
uMhlanga is simply the best Durban holiday that you can have, and people continue seeking out a better quality of life. Living here is like being on a year-round holiday, says Botsis. The sub-tropical weather and warm ocean makes it a coastal paradise. The area is attracting a significant stream of semigration buyers, especially wealthy buyers from Johannesburg, and Botsis says they are now increasingly looking at international buyers from the Middle East and elsewhere.
Second homes
uMhlanga is well positioned for second homes. There is a significant choice of apartments, as well as luxury villas and homes with 5-star amenities right on your doorstep. It is also very accessible with direct flights into the King Shaka International Airport which is an efficient airport for a quick in and out experience. uMhlanga is also only a few hours’ drive from Johannesburg and other inland areas.
According to Anni Eisele, there is currently a choice of well-located apartments on the market in the R3 million to R6 million range. At the top-end is the Pearls of Umhlanga complex where one of only four penthouses is on the market for R39.5 million. Luxury homes in Hawaan and Izinga are also on the market for between R10 million to R25 million.
Apartments are an outstanding investment for own-use as a second home, and can also be rented out when not in use. Rental rates range from around R22,000 to as much as R70,000 per month for a well-located, high-end beach apartment.
Alwene Els, a rental agent with Seeff who specialises in uMhlanga, La Lucia and Mount Edgecombe says there is high demand for rentals from locals, but also many Johannesburg professionals who are seeking out Durban’s sunny lifestyle. She says remote work has increased demand for homes with dedicated office spaces. Secure, spacious four-bedroom townhouses remain highly sought after, especially pet-friendly units with four-bedrooms are rented out quite quickly.
