Demand outweighs supply in KZN North Coast property market

As new stock becomes available to purchase on KwaZulu-Natal’s rapidly expanding residential property market so it is rapidly snapped up by eager buyers wanting to acquire a home on this prime stretch of real estate, says Neil de Beer, Pam Golding Properties area manager in the Ballito area.

Priced at R13.5 million through Pam Golding Properties, this four bedroom, three bathroom home is situated on a private road with spectacular sea views and direct entry to a private beach. It includes a gourmet open plan kitchen, four reception rooms, covered patio leading to a pool area with barbeque and pizza oven, three lock-up garages and staff quarters.

“The KZN North Coast residential property market has performed exceptionally well in the first half of this year (2015), confirming that although there was a period of reduced activity as financial markets rebalanced in recent years, this coastal region remains one of the country’s most sought after residential destinations.

“The recent go-ahead by the local KwaDukuza Municipality for development of the groundbreaking R1.4 billion, 65 000sqm mega mall, Ballito Junction, will serve to further underpin the high investment appeal of the region both in general economic terms as well as for home buyers.” Situated at the entrance to Ballito, the project will see the existing mall extended ‘super-regional’ status.

Pam Golding Properties Ballito has experienced recording-breaking sales in the area, both in the number of homes sold as well as prices achieved for sellers, with sales turnover for the six month period from January to June 2015 of R169 million, considerably up on sales of R131 million for the corresponding period in 2014.

“The attraction to the greater Ballito area stems from a strong demand for homes in the region’s high performing residential estates such as Simbithi Eco Estate, where demand far outstrips supply due to limited land available for new sales - activating a healthy resale market. With prices being achieved mainly between R3 million and R7 million – and even up to the R10 million mark, freestanding homes in this estate are in highest demand while sectional title homes on the eco-estate are fetching prices between R2.5 million and R5 million.”

Ideally situated right on Ballito’s ‘Granny’s Pool’, the safest bathing area, this small complex has a sunny pool area, braai areas, outside showers, garaging and store rooms. Pam Golding Properties is marketing a three bedroom, two bathroom apartment priced at R3.15 million.

In Simbithi, which will eventually comprise a total of approximately 1 850 units as well as six community centres with a range of sporting facilities and a world-class golf course with clubhouse, there are currently 461 completed freehold homes on the estate with another 101 under construction. Two off-plan developments named Fish Eagle and Jacana are in progress, with construction of the former underway and the other currently marketed. With no development land available on the estate as from April 2014, there are some resale stands available for purchase, priced from an entry level of R1.99 million.

The renowned Zimbali Estate continues to appeal to a unique and affluent buyer with an active and highly attractive variety of stock available. Zimbali, like Simbithi, offers a wide variety of estate-based facilities for homeowners which match and even exceed Johannesburg-based estate while including a coastal lifestyle. “Of the total of 800 freehold sites only about 60 have not yet been developed or completed. Only a handful of these are available for purchase as resales, with the majority of vacant land being held by end-users with the intention to build,” says de Beer.

With spectacular views across the ocean and direct access to a private beach, this modern and spacious four bedroom (all en suite) family home has double volume ceilings, magnificent home theatre room and entertainment areas plus a granny flat, rim-flow pool, staff quarters and parking for six vehicles. This well positioned home is priced at R8.9 million through Pam Golding Properties.

“Top prices for vacant land in Zimbali is in the region of R11 million for beachfront sites and R2 million to R4 million for sites not on the beach – the latter being a recent sale by Pam Golding Properties. Top prices for freehold homes include two homes on the beach in Cherrywood, each of which fetched in the region of R32 million. Generally prices for sectional title and freehold sales range from R3.5 million to R32 million. The most buoyant market is in the price bracket from R4 million to R6 million with fewer, however notable sales up to around R10 million.”

The 700ha Palm Lakes Estate, located a mere 15 minutes north of Ballito, is a definite hot spot with a broad offering of affordable homes as well as having plenty of available land for those wishing to buy and build. Located about 13km  just north of Ballito via the Tinley Manor turn-off from the N2, Palm Lakes has just reached 500 transfers, with three bedroom, two bathroom freehold houses starting at R2.25 million and stands selling from R590 000 for 550-600sqm. Says de Beer: “They can’t build the roads fast enough. Phase 2D comprising 194 stands was recently released and only 39 are available.”

The variety of these and other estate properties has definitely contributed to the upsurge in sales. Beachfront properties, with sweeping views of the Indian Ocean, active marine life and easy access to several Blue Flag beaches remain in demand as holiday homes for buyers from all across the country. Ballito, Salt Rock and Sheffield Beach remain in a state of constant demand as they offer good value for money and are easy accessible with King Shaka International Airport 15 minutes away.

Positioned right on the beachfront in Shaka’s Rock, with a lawned area in front, this two bedroom apartment has an open plan living and kitchen area and covered parking bay, and is priced at R2.25 million through Pam Golding Properties.

“About 60 percent of our buyers are from Gauteng, 30 percent from the Upper Highway area, the north of Durban and the KZN North Coast, five percent from other regions such as the Free State and Cape and the remaining five percent mainly South African expatriates returning home from countries such as Canada and the United States. Resident owners are up 50-60 percent over the past five years due to Ballito’s regional growth and close proximity and convenience to the airport – allowing Gauteng families to relocate to the coast for a more relaxed lifestyle while conducting business by commuting. Buyers emanating from the likes of central Durban and uMhlanga find the variety of quality estate appealing, while leisure owners are predominantly from the Gauteng region with small numbers of international owners seeking to escape the European winter.”

He says in Ballito the average price of frontline beachfront flats is R22 000 per square metre with an average selling price of R3 million, whereas apartments across the road and up to two roads back from the beach but still affording good breaker views average at R15 000 per square metre with an average selling price of R2.2 million. “The demand for permanent complex living with good sea views is constantly on the increase and we anticipate this trend to continue as Ballito gains in popularity as the destination of choice for settling down. This trend has caused the gap between the smaller beachfront apartments and those offering more space/lock-up garaging/security/facilities to reduce substantially of late.”

In Brettenwood Estate in Sheffield Beach just five minutes north of Ballito, only about four stands are left priced from R2 million upwards, with apartments in the still-to-be-built, new Brettenwood Lakes priced from R2.8 million to R4.5 million and existing houses in Brettenwood starting at R4.25 million. Positive news is that Blythedale Coastal Resort has announced they are set to launch a range of new estates at the end of October 2015.

Adds de Beer: “This resurgence in the region’s property market looks likely to continue for several years, with development in the KwaDukuza Municipality predicted to grow at a steady six percent per annum over the next three years. This growth, combined with the lifestyle, unique estate offerings and the new mega mall due for completion in Ballito in the next 18 months, will ensure that the North Coast will remain an attractive and active property market for some time - with strong returns anticipated for property owners over the next three to five years.”

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