Author: Dr Andrew Golding: Chief Executive of the Pam Golding Property Group
Vernon Vogt: Principal of Jawitz Properties North Coast
Andrea Santoriello: ARCIS Property Development Sales Manager
Michelle Vermeulen: Licensee for Seeff Queensburgh
1 April 2021
What R1.5m buys you in KZN
Ballito, North Coast and Queensburgh in KwaZulu-Natal offer buyers spacious homes, a more balanced and relaxed lifestyle, with new apartments selling from R550k and homes from R850k. Experts offer advice on what you can expect to buy within the R1.5m price band in this province.
The semigration of South Africans to coastal towns has been a marked trend for 2020, with KwaZulu-Natal benefiting due to affordability and the lifestyle offering.
Dr Andrew Golding, Chief Executive of the Pam Golding Property group says, “In demand are appealing suburbs and peripheral areas in metros, as well as secondary cities and towns traditionally viewed as holiday or retirement destinations, as buyers are attracted by the more spacious homes and more balanced and relaxed lifestyle in these markets.
“Within the sectional title market, there is a shift towards larger units, as buyers seek more space for dedicated work areas and where possible, outdoor space.”
According to Property24 Trends data, the erven average sold price in KwaZulu-Natal for 2020 was an estimated R950 000, while the average sold Sectional Scheme Units price was R850 000.
In 2020 over 29 000 properties were sold across KwaZulu-Natal. With an average of over 42 000 properties sold per year in the province over the last five years (2015 to 2019), this indicates a marked drop in registered sales for last year. Hard lockdown took effect within the second quarter of 2020, impacting the South African economy, and specifically the property industry’s ability to do business. As a result, pent-up demand due to the Covid-19 pandemic and restrictive lockdown measures will continue to impact trends, with average sales per year only expected to recover towards the end of 2021.
The latest property listings on Property24 show that two- and three-bedroom homes are most widely available. Some 39% of buyers interested in making KwaZulu-Natal their home are below the age of 49-years. While sellers in the area fall within the 50-64 years (33%) and 65-year and older (30%) age group.
KZN North Coast
Always a popular holiday destination, the North Coast of KwaZulu-Natal has now become an area of choice for various types of property investors, with a long-term track record of outperforming national growth statistics.
“On the KZN North Coast, The Onyx in the Gateway area has arguably been one of the fastest selling developments in the past few years with more than 50% selling after launching during lockdown, with one and two-bedroom units starting at just under R1.2 million,” adds Golding.
According to Vernon Vogt, Principal of Jawitz Properties North Coast, the current economic situation combined with the fact that operating businesses virtually has become the norm are contributing factors to more and more families moving to KwaZulu-Natal’s North Coast.
“The KZN North Coast has seen as much as 60% of buyers for new off-plan developments originating from Johannesburg and we have seen a spike in enquiries from Gauteng residents wanting to relocate to the North Coast, specifically to the greater Ballito area, now that they work remotely.
“There has also been a shift in interest from buyers looking for holiday homes. Earlier this year, the holiday home and investment markets were quite depressed but we are seeing a resurgence,” says Vogt.
Ballito has become a primary residential destination attracting buyers from around KZN and young families relocating from Johannesburg. Secure gated environments with great communal facilities are especially popular, and a new development by ARCIS Property Development has just launched in the heart of Ballito.
“Ballito Village is ideally located to deliver the coastal village lifestyle, with unmatched access to Umhlanga CBD and King Shaka Airport and, by extension, the rest of South Africa,” says ARCIS Property Development Sales Manager Andrea Santoriello.
It offers 1-, 2- and 3-bedroom apartments with top-notch finishes in a beautiful and secure lifestyle estate with all the expected amenities and more, accessibly-priced from R949 000.
“These apartments offer superb investment potential, and our first phase of 60 apartments in Ballito Village, launched on 1 October, is almost sold out. Phase 2 with another 60 apartments is now selling fast. This development represents an excellent lifestyle and investment opportunity – which is reflected in the pace of sales. The development will eventually take access off the same turning circle as the prestigious Zimbali Estate, giving you one of the best addresses in the country.”
Michelle Vermeulen, licensee for Seeff Queensburgh who says, “We have seen a lot of first-time buyers as well as young families upsizing in the last 3 months. This is due to the current low-interest rates which have made purchasing a home more affordable for most. We also seeing a lot of rental clients, now opting to purchase a property instead of renting. This has had an impact on the rental market. Unfortunately, Covid Lockdown did affect credit profiles and this is noticeable in the rental applications being processed.”
Houses priced between R1 million and R1.5 million are very popular as they tend to offer three-beds, two-bath, a garage and possibly even a granny flat.
In Bellair, two-bed flats/simplexes between R550 000 to R650 000 and homes for R850 000 or under are also in high demand. This suburb provides easy access to schools, shops as well as CBD. New developments offering properties between R1.15 million and R1.6 million are also in high demand, but there is a shortage of these in Queensburgh.
“Buyers will always want the most for their money and sometimes have very unrealistic expectations. But our professional agents work with the buyers to assist and guide them, taking into account their personal requirements, needs and wants. The same applies with tenants. Sellers are generally in line with the market and allowing us to list and market at realistic prices,” explains Vermeulen.
“This does not mean sellers are desperate, it allows them to list and sell their properties within a reasonable period and obtain the best possible price for their property. Although Covid has put a ‘damper’ on things, both buyers and sellers have been very compliant and accommodating with the various accessibility restrictions in place.”
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