The investment signals a catalyst for economic development in south Durban, an area which is already the second largest contributor to the country's GDP.

Commercial property specialists in the area confirmed the demand for commercial and industrial property has increased dramatically in and around the current port with land in short supply, Transnet's injection into the area would positively stimulate jobs in the area.

Residents living on the perimeter would be hoping for a similar windfall of the Gautrain land purchase, hoping to sell their homes and land for much higher prices, to supply the expected increase in property demand.

Demand for land and residential property has shot up, says Deidre Ronnenbergh of the local Aida franchise, as contractors descend on the town. Their numbers are also being swelled by upcountry buyers relocating their businesses to Amanzimtoti in a quest for a more relaxed, seaside lifestyle.

"This has galvanised the rental market and even though sellers who don't find buyers in a month or two are switching to renting out their properties, shortages are becoming evident. Further compounding the problem for new arrivals is the fact that many landlords only offer short rental contracts because they reserve their units in the holiday high season to cash in on much higher seasonal rentals.

The high demand for rental units is also spurring new investment by landlords, Ronnebergh says. "They are sourcing older properties in need of renovation and spending some capital to modernise them before releasing them on to the rental market. And their capital expenditure is being offset by excellent returns."