Stock shortage fuels rentals on Durban Bluff

Strong demand for rental flats on the Bluff in Durban has created excellent opportunities for buy-to-let investors, who are currently earning returns of up to 8% a year.

This magnificent home located in Millionaire’s Mile on the Bluff in Durban is for sale through Harcourts Real Estate for R9,79m.It features a sea-facing swimming pool with viewing deck and a separate luxury guest suite as well as four bedrooms, four bathrooms, two reception rooms, wine cellars, a modern kitchen, staff accommodation and double garaging, as well as plenty of off-street parking for additional vehicles on a stand over more than 2700sqm.
That’s the word from Wondera Erasmus, owner of the local Harcourts franchise, who says many young people who would like to buy a home on the Bluff can’t find anything currently listed in their price range and have decided to rent in the area instead, rather than look for property further afield.
This has bumped up the demand for rental units in the area, which contains several different suburbs, and rentals now start from around R4000 to R6000 per month for two-bedroom apartments.Family homes typically achieve rentals of around R7500 per month. Top properties with expansive sea views along “Millionaires Mile” can achieve rentals of up to R16 000 per month, she says.
"The popularity of the area is primarily due to its proximity to the city centre and the Jacobs industrial area. There is huge demand here for homes priced at less than R1m, which is now also being fuelled by prospective investors. There is, however, little stock coming on the market at this level, and most sales activity is taking place in the R1m to R2m range.
“Indeed, well-priced and well-maintained stock in this category sells without delay and buyers need to move quickly once they have found a suitable property. If they wait longer than a day or two to make an offer, the property is likely to be sold to someone else."
Erasmus says that homes in the more expensive price ranges arealso selling relatively quickly, provided they are well-priced. “For example, we recently sold a neat maisonette in Marine Drive for R2,5m within two days of listing – and the investor who bought it immediately found tenants."
She cautions, however, that sellers right at the top end of the market do need to temper their price expectations. "Although there is currently a strong sellers' market, the Bluff's price ceiling is around R8m and any property over this price struggles to attract buyers. In a recent case a seller had to drop his asking price by almost 25% to bring it down to under R10m in order to try and achieve a sale."

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us