select
|

Stock and Parking Shortages in Durban North

It’s not surprising that apartment blocks are in increasing demand as people flock to South Africa’s urban centres looking for job opportunities and affordable accommodation. Terence Hogben, Principal of Leapfrog Durban Central says that there is little land left for development in Durban – heightening the need for existing properties.
 
Add to this the fact that the middle to lower housing segments have consistently outperformed the upper end of the market during 2015 and it becomes clear that sectional title properties are hot at the moment.
 
Hogben shares that apartments currently make up 65% of their business (in their areas of operation: Morningside, Berea, Glenwood and Manor Gardens) with a general price range between R500 000 to R1.5 million, the sweet spot laying in the R900 000 mark. ”The buyers above R3 million are extremely picky, demanding that the home has to be immaculate as buyers quite often don’t have anything left to spent on renovations after the purchase of the property.
 
Sellers need to realize that buyers are under a lot of financial pressure and cannot afford higher prices; the risk of not heeding this is that it could cost them later when they have to reduce the price and the property is now stale. I feel that the people buying in the lower end of our market are not focused on the bad news in the country; they are just getting on with life and that means finding a place to call home”, explains Hogben.
 
The Parking Problem
 
Due to the fact that areas like Berea and Morningside have a large number of heritage properties (which are protected by AMAFA (Amafa aKwaZulu-Natali) the provincial heritage society) there isn’t much space for further development – something that is experienced particularly via the growing lack of available parking in these areas.
 
“Parking is a huge issue as historically having parking was not always necessary and thus not provided for. If one can get an apartment in the R1 million region with two parking spaces in a semi decent area it is gone in a flash”, explains Hogben.
 
Hogben indicates that many apartment blocks are removing grassed areas and gardens to allow for more parking, but facing a lot of resistance from the older owners in apartment blocks. Quite often people rent spare parking spots in blocks of flats nearby. If there is permanent street guard and cameras people will put up with their second lower value vehicle being outside. “Unfortunately public transport is only a temporary solution because we find that those same people that were satisfied with public transport eventually aspire to their owning vehicle which compounds the problem”, says Hogben.
 
Based on the shortage of stock in these areas it is clear that Durban North is a very popular area in terms of residential property - with demand only being held at bay by availability. Landlords and sellers would be wise to fashion secure parking if they’re to push up their asking prices successfully. 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK