KwaZulu-Natal police spokesperson Colonel Jay Naicker says the five aged between 22 and 35 were arrested in the early hours of Friday morning during a search operation.
The five are expected to appear in the Ntuzuma Magistrate's Court.
The arrests relate to the murders of two people killed in October last year.
Mpilo Magubane's body was found stabbed to death in the Qhakaza area.
A 29-year-old was arrested for his murder.
Senzo Shangase, 24, was found with his hands tied behind his back and burnt to death also in the same area in October 2014.
Four of the five were arrested for his murder.
Acting KwaZulu-Natal community safety MEC Sibongiseni Dhlomo welcomed the breakthrough made by the police.
"As the government, we have invested a lot of resources in stabilising the hostel with a view of bringing about lasting peace and peaceful co-existence.
"We are, therefore, elated at these arrests and we hope that they will send a clear message that those responsible for mayhem and murder at this hostel will soon face the full might of the law," he said in a statement.
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