Sapphire Coast offers sharp investments

Property investors with a sharp eye for good opportunities stand to benefit from sound investments on KZN's Sapphire Coast in anticipation of rocketing housing demand when construction of the multi-billion rand dug-out harbour gets under way.
The first development phase of the harbour, to be constructed on the site of the old airport between Amanzimtoti and Durban, is expected to commence within the next two years and, says Michelle Dunnett, owner of the Harcourts Sapphire Coast estate agency in Amanzimtoti, rental demand along the coast is set to explode.

"The start of construction will bring the first wave of demand, which will likely be sustained over the medium to long-term when the facility is commissioned and an influx of permanent employees at the harbour and related industries start looking for accommodation before they commit to buying homes of their own."
Amanzimtoti in particular stands to benefit, she says, because of its proximity and easy access to the planned harbour. Sharp-eyed investors now have an excellent window of opportunity because in spite of growing demand for local properties and a livelier rental market, prices are still very reasonable, she says.
"Although demand has increased, thus far prices have not risen significantly because local buyers are still faced with challenges to obtain finance, a fact that sellers who want quick sales appreciate. The situation is very likely to change, however, when construction of the harbour starts and demand increases exponentially. Scarcity of land for further development is another factor that will support higher prices as we are likely to see a much bigger pool of buyers vying for existing properties."
She adds that the rental market is already buoyant, with three-bedroom family homes in the R1m price range finding tenants within a day or two at rentals of around R8000 per month.
Equally, demand among buyers has strengthened in the past few months. Dunnett says her agency recently sold five properties with a combined value of about R6,4m within five days.
Several guesthouses and bed-and-breakfast establishments suitable for holidaymakers as well as professionals on contract at the harbour are currently on the market at prices ranging from around R3m to R16m, while the Bella Vista Hotel on the main road is on the market at R25m.
The hotel, set in large grounds, offers 32 rooms and great sea views. Dunnett says the hotel needs some refurbishment but offers a great investment opportunity for entrepreneurs who want to cash in on future accommodation demand.
Current house prices in Amanzimtoti range between R475 000 for two-bedroom townhouses in less popular areas and about R9m for top homes with sea views. Properties in the lower and middle price ranges are currently hot sellers, with R670 000 being the average price of the properties sold by the agency in the past 12 months.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us