KwaZulu Natal North Coast residential developments in high demand

There’s a renewed sense of optimism and positive sentiment in the residential property market in KwaZulu-Natal, and Pam Golding Properties’ regional office reports an increasing demand for homes from buyers across all price bands.

Scenic view of the Westbrook Beach Club Estate

Largely driven by the lifestyle offering, year-round climate, user-friendly beaches and excellent schools, we’ve seen an influx of investors re-entering the market as well as commuters who have chosen to move here with their families and then commute to Johannesburg during the week, says Greta Daniel, sales and operations manager for Pam Golding Franchise Services.

“A healthy, family friendly lifestyle has pushed demand to the point where we are seeing the price curve in regard to house prices ie values, escalating faster than expected. For example, in some suburbs house prices have more than doubled over the past 10 years. Consequently, in major economic hubs and centres we’ve seen demand outstripping supply for the past seven to eight months, and are experiencing huge stock shortages.

“KZN offers more convenience than most other parts of the country, as schools and corporate hubs are scattered in nodes across the territory. For example, you can live, work and play within the suburb of Durban North, La Lucia, Morningside or uMhlanga. Each node is fully self-sufficient with its own office hub, banking node and schools – in fact Durban North has over 10 schools within a 10km radius.”

She says the airport’s relocation to the North Coast has also created an ultra-convenient lifestyle for commuters, making this the obvious choice to raise a family. “The prevalence of secure estates has also boosted demand, along with the relative value for money when one compares property prices with other upmarket coastal areas.

Pam Golding Properties is marketing homes from R2.55 million, apartments from R1.45 million and vacant land from R850 000 at Westbrook Beach Club Estate on the KZN north coast.

“Our Pam Golding Properties sales statistics bear out these trends. For example, our uMhlanga offices is achieving sales figures similar to those of the last boom, with uMhlanga beachfront and Izinga Park hot areas, while the market in the Ballito area is booming. The latter includes the Zimbali Coastal Resort – which is home to some of the most expensive properties in the country, as well as other security estates in and around Ballito such as Simbithi and Palm Lakes. Further inland our Pietermaritzburg office was one of the top performing areas in terms of national sales,” says Daniel.

The constantly expanding North Coast node continues to experience a high demand for secure gated estates and residential developments. Neil de Beer, PGP’s area principal in the Ballito area, says there is a continuous, exceptionally high demand for gated estate living in developments which include Zimbali, Simbithi, Palm Lakes – which collectively reached 500 property transfers in total at the end of 2015 - and even the smaller entry level estates such as Manor Estates and Westbrook Beach Club Estate.

“There are a number of developments both new and ongoing in the Ballito area, many of which have already sold out, while new developments have already sold off-plan. The main demand at present is for entry level estate living apartments, where there is a stock shortage in the R800 000 to R1.5 million price bracket. The challenge at present for developers is the supply of electricity outside the estates.

Pam Golding Properties is marketing a two bedroom, two bathroom apartment in Palazzo de Marina in Ilala Ridge Estate in uMhlanga. The apartment is priced at R3.025 million and has modern finishes and double garage, while the sectional title development has a communal pool and 24-hour manned security.

“Developments within the secure estates are still continuing and selling very well and as land is becoming very limited in Ballito, development land is becoming very expensive. We have just sold some very appealing land in Westbrook Beach Club Estate to developers from Johannesburg, and this is planned for launch in the next few months, catering for the price range from around R1.1 million,” adds de Beer.

In uMhlanga, area manager for PGP, Stuart Millar, reports a huge demand for gated estates, with a significant shortfall in supply. “Izinga Park land has all but sold out with only three erven left, with limited inland views and priced at R2.4 million for 1200sqm. In recent years we have been involved in selling numerous developments, including The Zen, 46 on Meridian, PGA Park, Ilala Views, Bahia Club 1 and 2, Palazzo de Marina and Kahala Valley. More recently we have marketed Beacon Rock, where there is only one three bedroom unit left in the second phase, priced at R3.425 million.

“Currently we are selling units in Silver Ridge Private Residences, a 60 unit development where two, three and four bedroom units are available with either sea or inland views. There are also penthouses, apartments, duplexes and villas available in this development, where 14 units have either been sold or reserved. Located in the Izinga Park area, prices in this development vary from R3.2 million up to R25 million for the 715sqm penthouse which has been sold. Excluding the penthouse the average price per square metre is R26 000.”

Durban beachfront units being snapped up from just R500 000

In Durban, Carol Reynolds, PGP area principal for Durban, Durban North and La Lucia reports that huge value for money is still obtainable with entry level bachelor apartments in the second row block of flats on North Beach’s Golden Mile selling at just R500 000.

“On South Beach, units at this affordable price will be found in front line blocks without sea views, or second row blocks with sea views. On Golden Mile, front facing flats will fetch prices of R1.5 million, whereas on South Beach you can still find sea facing units in well-maintained blocks for under R1 million. In fact, we have just sold two penthouses in South Beach with panoramic sea views for R650 000 and R750 000 respectively. These units are in a well-run block with secure undercover parking bays and lock-up garaging. The blocks vary in size, with prices in the sought after well-maintained blocks naturally higher than those in less desirable blocks.

“There are also sections of the beachfront area which are more popular than others. For example, the far north side of North Beach is more sought after than central North Beach, while the South Beach node near Marine Lifesaving is the most popular part of this area. Security as a whole has increased significantly on the beachfront, with all the new investment in the area following the upgrade of the promenade. KZN Tourism has highlighted this area as being integral to the tourist market and as a result, the entire beachfront has been upgraded and is maintained with a strong police and security presence. This obviously has a positive spin-off for the property market and investors are returning to the Durban beachfront to snap up good deals before prices really start to climb,” says Reynolds.

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