North Coast takes off

Intense interest from Gauteng will provide the spark for North Coast boom, writes Lesley van Duffelen.

The business community believes the King Shaka International Airport is the best thing that could have happened to the North Coast. An upbeat Mike Newton, municipal manager of Ilembe, the district municipality directly north of the airport, says the region is now one of the fastest growing nodes in KwaZulu-Natal: business plans worth multi-millions have already been passed, and residential property prices are only slightly down in the current difficult economy.

In fact property prices are poised to boom on the back of demand which will come from Gauteng, says Keith Wakefield CEO of Wakefields Estate Agents. There has been a lot of concern and hype about aircraft noise but this is not a major criteria that will affect either price or demand, he says, adding that it will be at least three or so years before people really appreciate the value of this world class airport.

Immediate demand

However, the major problem facing the area is its lack of accommodation in the R800 000 to R1.3 million price range. The immediate demand is from the hundreds of people who work and will work at the airport, Dube TradePort and growing businesses in the area. Any developer looking for an opportunity should be looking here, although the challenge will be finding the land, he said.

“Gauteng is now literally on the North Coast’s doorstep and it is therefore feasible for businessmen to work in Gauteng while their families live in a luxury secure estate like Zimbali. The North Coast has the opportunity to become to Gauteng what Connecticut is to New York and when families realise the benefits, they will move and then property prices will boom,” said Wakefield.

Newton says the local municipality has established Enterprise iLembe, the economic development agency for the district, to assist developers cut through the red tape of establishing a presence on the North Coast.

More immediate demand for residential property will come from the frequent flyer upper LSM group who will “use the airport like we use cars”, as well as those working at the airport. The municipality has prepared for huge commercial and residential growth to take place. With excellent communications platforms being set up, a year round warm climate, six international golf courses, beaches and lifestyle, Newton foresees major Gauteng based companies moving and the N2 corridor becoming a “Midrand” between Durban, the King Shaka airport and Richards Bay.

In April, 120 hectares of land along the N2 was bought on auction for mixed use development and the municipality had released 270ha hectares of light industrial land at Compensation Flats 8km from the airport at very competitive rates. Within the next 12 to 24 months the 5km radius around the airport will become very dense and this will expand outwards to 20km radius over the next 10 years, said Newton.

Add to this 7.5 million passengers annually escalating to 45 million in 2016 that will boost business and tourism and there are plans in the pipeline, including wine estates, that will make the North Coast very competitive.
Gauteng is so close that the North Coast can compete 100% with Cape Town in lifestyle, a wonderful climate and fantastic environment. King Shaka Airport has done the whole area a huge favour and everyone involved in the planning and building of the airport needs a pat on the back, said Wakefield.