KZN South Coast industrial property surge on Durban Port upgrades

The significant multi-year upgrades and modernisation of the Durban Port along with other upgrades such as the N2 and general development are a major growth boost for the property sector, including industrial warehousing and logistics property, says Michelle Harris, licensee for Seeff South Coast.

The Durban Port is a massive economic gateway, connecting regional and local economies to international shipping routes, and boosting the region and small towns of the KZN South Coast area. It supports trade in sectors such as automotive, manufacturing, and agriculture.

A key beneficiary of the Port is the Durban South Basin (DSB), which includes areas such as Prospecton, Mobeni and Jacobs in Amanzimtoti. These areas are in high demand, close to the N2 and about 15 minutes from the port.

It is an important and thriving industrial warehousing and logistics hub for the port, well-known for the major Toyota manufacturing plant, which produces several models, a property agent with Seeff Amanzimtoti.

The industrial warehousing and logistics sector is doing particularly well and is leading the three commercial property categories, according to a recent report by economist, John Loos. Industrial property boasts the shortest market turnaround, fuelled primarily by e-commerce growth and supply chain needs.

Consequently, says Camilla, industrial vacancies in Durban’s core logistics nodes are now at a historic low of around 3.8% (based on a report from Paragon Steel Structures). This underscores industrial property as a top-performing asset class in the area.

Land is, however, scarce in Prospecton and she says there are no new large freehold sites with high-end specifications in the pipeline, despite the high demand. “We currently only have one rare opportunity which has just come onto the market to acquire one of the premier logistics and industrial assets in the area.”

Michelle Harris says overall, there is renewed energy and enthusiasm about the South Coast area, both from a commercial and residential property perspective. Blue Flag beaches, good amenities and infrastructure, and initiatives such as “Tidy Towns” have been a major boost with the area fast evolving from a traditional tourism and retirement stronghold, to attracting more families and semigration buyers, she says.

The Port upgrades and development projects planned and underway, including residential and infrastructure are very positive for the area. These also include a new shopping centre, and harbour for Port Shepstone, the first of its kind since 1994, aiming to revitalise the local economy and create a hub for tourism, fisheries, and maritime logistics. There’s also the revival of the Margate Airport, adding further to the development and growth potential of the area, she concludes.

Issued by Gina Meintjes