Durban's finally making a point
Category Durban Property Market
Durban’s Point Development began with a bang, and has whimpered ever since. Stalling, indecision, and the latecomer to the mix, the National Credit Act, all conspired to ensure that the Point was never made. But that’s all changing.
It seems there’s considerable light at the end of the tunnel. Russell Curtis is head of Durban Investment Promotion (DIPA), and believes, with a high degree of confidence, that Durban’s future is brighter now than it’s been in the last 15 years. He considers that insufficient investment, either foreign or existing, was the root cause of a stagnant infrastructure, and that is no longer the problem. Currently, investment in Durban is massive and ongoing, and that, happily and eventually, includes Durban’s Point precinct: “The Malaysians have returned to the Durban Point precinct after being silent for 10 years,” he says. “A 50:50 partnership between UEM Sunrise and the City, the Malaysians have world class plans to ‘supersize’ the Point. Those giant waterfront facilities with iconic buildings and facilities, that’s what they’re looking at. They’re huge property developers in Singapore, Malaysia, Australia and elsewhere, and they have a team of Malaysian executives right now, living and working here. The final internal town planning arrangements are being completed right now.”
Residential sales at the Point, initially the focus of a developer/investor frenzy, had slowed down drastically, as the promised Nirvana was beset with problems. Those who’d bought up apartments anticipating the doubling of their investment in a few months were sadly disillusioned, as the volume of apartments for sale at inflated prices – combined with a reduced, jittery buying public and the effects of the NCA – created a disconnect. As Myles Wakefield, CEO of Wakefields Real Estate says, “It’s taken time, but as sellers became more realistic with prices, sales in the area have picked up. A recently launched development elicited a very positive response from buyers. News that the Malaysian developers are actually resident in town, has injected that much-needed confidence into the marketplace, both from buyers, renters and the holiday market.”
Not only are they in town, but they’re engaging closely and extensively with the municipality to bring to fruition, responsibly, the joint vision for the entire area. There’s talk of everything from a tram connecting the Point to the CBD and Umhlanga, to murmurs of world-class architecture and a theme park to rival anything similar worldwide. And it will be on a massive scale. High on their agenda too, is the urgency of a retail/commercial component, so essential to any successful residential development.
Once all the elements are in place – and the uncertainty of the project and, indeed, the area is removed – the Point ticks so many great boxes: it’s central, the modernity and variety of the apartments, the views, the lifestyle, it’s endless. Currently, buyers can purchase a one-bedroomed apartment for around a million rands, up to R5m for the larger ones. Wakefield says renewed interest recently has brought in buyers right across the price spectrum looking for Point properties at market-related prices.
Slowly, commerce and art is returning or arriving the Point. An upmarket jazz lounge and an art studio and exhibition space opened there in the last year.
The Point is going to happen. Yes, you’ve heard that before, but this time, the mistakes made, the perceptions created, are all known and can be factored in and resolved before ploughing ahead. This time, the horse won’t be put before the cart, collaboration between the City and private investors is at an advanced stage, and the Point is being made.
Author: Anne Schauffer
