RE/MAX Suburb Trend Report - Umhlanga

Area history

Founded in 1895 by Sir Marshall Campbell, Umhlanga is a residential, commercial and resort town situated north of Durban along the coast of KwaZulu-Natal. Since the first hotel was established in the town in 1920, followed by a shop and then lighthouse, development in the area has continued on a gradual but steady pace and today Umhlanga has transformed from a small coastal village into a bustling commercial hub.

Similar to the commercial migration from the Johannesburg city centre to Sandton, many businesses have relocated office from central Durban to Umhlanga. In 2010, the Durban International Airport was also relocated to La Mercy, which is within proximity to Umhlanga, and was reopened as King Shaka International Airport.

Umhlanga is home to the KwaZulu-Natal Sharks Board and a large variety of top class amenities such as the Umhlanga Hospital, schools, restaurants, entertainment facilities and the Gateway Theatre of Shopping - the largest shopping mall in the Southern Hemisphere.

Area property information

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that the commercial development within Umhlanga has been phenomenal and has had a positive contribution towards the residential property market in the area.  He notes that house prices have grown massively in the area over the past few years and investors looking to buy in Umhlanga can be assured that they will see a good return on their investment over the long term.

Figures from Lightstone, a property statistics and information provider, show that the average price of a freehold property in Umhlanga is around the R4 355 489 mark and there have been a total of 39 sales concluded in the area during 2012. Sectional title units have proved to be more popular with the total number of sales around 147, with an average value of R2 912 477. This is largely due to the fact that the current property market stock is made up of 78.23% of sectional title units and 21.77% freehold homes.

The largest percentage of recent buyers have been from the 50 to 64 year old age bracket making up 39.45% of the market, followed closely by the 36 to 49 year old demographic at 34.4%. The largest number of recent sellers has been from the 65 year old and older category.

Property price trends

Demand for property

According to Goslett, a trend has developed due to the lack available properties within gated estates in Umhlanga and the surrounding areas, where demand has strongly increased for property within secure developments. Many buyers are prepared to pay more for homes within a 24-hour guarded and patrolled estate. He says the constant surveillance and security patrols that are commonly found within security estates attract buyers to these developments and there is consistently a strong demand for these kinds of properties due to the lifestyle elements they offer.

The general consensus country wide is that we are experiencing a buyer’s market and factors such as low interest rates are a huge advantage for those looking to get into the market.  Even so, investors should still look at the location and type of property they buy into. Steady demand for secure estates in up and coming areas such as Umhlanga, make these types of properties a good investment option for buyers along the KwaZulu-Natal north coast.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us