North Coast - Great Lifestyle, Proven Investment
Category Durban Property Market
Motivation for homeowners moving up the Kwazulu-Natal north coast suburbs has a few common threads, from proximity to Umhlanga/La Lucia Ridge as the commercial/economic/employment hub, to the easy accessibility to King Shaka International Airport and Dube Tradeport. But each suburb has unique drawcards, different price points, and for a number of little villages which mushroomed into fully-fledged suburbs, a general sense that that lively stretch of coastline holds enormous potential and possibilities.
It wasn’t that many years ago that many of these thriving suburbs were small beach holiday spots, too far out to consider permanent residence for those still economically active. Today, with the relentless infrastructural march and facilities north, not much is too far...as evidenced by the property explosion in areas like Ballito.
The popularity of suburbs north of the city leads to the assumption that properties there appreciate in value more than elsewhere. Wakefields Real Estate has analysed prices and appreciation in the market over a two year period for properties north of the Umgeni River, up to Umhlanga and Gateway. From August 2012 to August 2014, there’s been an increase in value of 15 percent, in other words, 7,5 percent per annum. Set this against the rest of Kwazulu-Natal over the same 24-month period - where the increase was 12 percent, translated as 6 percent per annum - that perception of higher appreciation for property in the north coast suburbs is an absolute reality.
Wakefields’ CEO Myles Wakefield points out that in Ballito, residential growth will inevitably go hand in hand with commercial, and in Ballito, commercial enterprises and opportunities are simply everywhere you turn. There’s a wide choice of homes, prices and lifestyles in the environs of Ballito, with numerous stylish, spacious gated estates catering for young families, avid golfers, eco enthusiasts, and retirees. Prices can range from an affordable R1m – near the freeway – and up and beyond the R20m mark, for the green eco- and golf estates, and the on-the-beach/seaview sites. Of course, there are others which fetch far higher prices, but these mentioned are the general price bracket.
Many of the gated estates consist largely of freestanding homes within a like-minded community, which for many, offer the best of all worlds – independent living, space and opportunity for children to explore and play outdoors – as opposed to electronic couch surfing - in a secure environment, with ample elbow room.
Upcountry families and work-related transfers to the coast have also increased demand in the area. The region is considered a healthy, wholesome one in which to raise a family, with a range of glorious beaches and natural bike, birding, horse-riding and hiking trails, all literally on the doorstep...or certainly within view. Just as some choose a country upbringing for their family, many choose the coast for similar reasons – here they’re able to marry work with excellent schooling and the seaside lifestyle for the family.
Aside from the young professional market, there’s also an emerging market moving up from Phoenix, Effingham and Greenwood Park as incomes rise, so demand is high for lower-end homes and flats. When homeowners on the Berea consider a move – up- or downsizing, or moving closer to work – they eye the north coast. With the slight easing of financial criteria and 100 percent loans being available again, the demand is certainly on the up, so there’s a stock shortage in certain sectors. Wakefields’ Ballito office reports a new buying trend of cash buyers, as well as an unexpected rise in those seeking out farms and smallholdings in the surrounding areas.
A good judge of interest in a particular market sector will always be feet through the door of show houses. A recent showhouse priced at around R3,5m in an Umhlanga sectional title complex drew close on 20 visitors, some from as far afield as the Upper Highway.
In Durban North, if you’re quick and sharp, there are still freestanding properties available which require TLC. They’re highly sought after by young families, seeking space, land and a family home offering room to grow. If they’re well priced, they’re sold in a day.
Sectional title estates remain popular, with demand outstripping supply. Simplexes – with no stairs – and complexes allowing pets, are snapped up. But there are units and homes in small gated estates which border the bigger, better known estates, where homes are more affordable and allow homeowners to put a foot on the first rung of the property ladder.
Wakefield says La Lucia prices start around R3m, and Durban North ranges from between R2m and R2.5m; the surrounding areas like Glen Hills, averages out at about R1,050m.
He added, “Demand may be high, but home seekers are far more savvy today than previously. They do their research, have access to far more information on the internet, and they come to us armed with more knowledge about pricing and areas. To sell a home, buyers need to price their homes realistically, do their own homework if necessary, and they’ll achieve what they want in a far quicker time.”
Author: Anne Schauffer
