South Africa offers some of the most competitive land and building costs globally. Picture: Supplied
Image: Picture: Supplied
South Africa remains one of the most affordable countries in the world to build a home, offering exceptional value compared to many global property markets.
For prospective homeowners and investors, this presents a unique opportunity to secure land and build in a new development without breaking the bank.
Reece Daniel, developer of eco-focused estate Serenity Hills, said SA offers some of the most competitive land and building costs globally, and the KZN South Coast is a prime example of the value to be found.
“Global construction prices show that those who choose to purchase a plot and build in secure estates are getting incredible value for their money and some of the most in-demand lifestyles anywhere in the world,” Daniel said.
According to the Turner & Townsend International Construction Market Survey 2024, the average construction costs in Johannesburg stand at R17 791 per m², with Cape Town at R19,589 per m².
This is despite the significant international demand for South African properties, where the natural beauty, inviting climate, and favourable lifestyle are highly appealing.
Compared with figures in other less-developed countries, SA still emerges as impressively affordable.
Cities like Ho Chi Minh City, Vietnam (R20 021 per m²), Lagos in Nigeria (R27 716 per m²), and Harare in Zimbabwe (R35 868 per m²) boast comparatively high construction costs. When compared to New York, the world’s most expensive city for construction at R103 016 per m², SA’s affordability stands in stark contrast.
Daniel said that the cost-saving benefits of building a home in South Africa are further extended by the absence of transfer duties, as well as the lower municipal rates which are based on the purchase price and property value: “There is also less financial outlay needed as there are no maintenance expenses or home inspections, so this makes buying land a great entry point into real estate for new investors.”
In January, Standard Bank said provinces with large rural areas, like the North West, Limpopo, the Eastern Cape, and KwaZulu-Natal, have also seen a notable share of building loans over the past three years.
The financial institution said high-income clients are increasingly taking out loans to build homesteads, though not all are financed through home loans, as some properties are built on communal land or in areas without title deeds.
According to the bank, this trend is especially common among clients working in major economic hubs like Johannesburg, the Western Cape, and parts of KZN, who invest in large homes for their parents or grandparents in their home villages to create a multi-generational legacy.
For potential property investors, Serenity Hills said there appears no better time to buy than now, with the South African consumer confidence in the property market at its highest in a decade, according to the Absa Homeowner Sentiment Index.
The index revealed that 87% of buyers in the last quarter of last year were optimistic about the future of residential property, with growing sentiment toward buying and investing.
Against the backdrop of a resilient property market and lower construction costs, Serenity Hills said it is further attracting investors with more affordable land on prime coastal real estate.
Residents who have installed energy-efficient features on the estate are said to be also enjoying further savings on utility and running costs.
The inclusive levies, too, provide access to quality, on-site facilities, including a clubhouse and extensive hiking and biking trails through 70ha of conservation area.
Daniel said the KZN South Coast is, in itself, a comparatively affordable region with residents benefitting from the relaxed coastal lifestyle without the higher cost of living. “It’s about providing lasting value - not just a beautiful home, but a more affordable way to live in the long run.”
Serenity Hills says it focuses on community living, with regular events hosted in this lush, coastal estate. It also boasts the award-winning The Packshed Restaurant, which hosts a monthly Night Market, and the popular The Sweet Gang & Friends Farm Stall.