CASH BUYERS SNAPPING UP HOLIDAY HOMES IN 'TOTI
News > news - 20 Jul 2009

The Amanzimtoti area of the KwaZulu-Natal south coast is seeing increased movement in the residential property market and a flurry of activity among cash buyers reports Terry Cousins, Pam Golding Properties area principal. The rentals market is also showing steady movement.

"We are experiencing a resurgence of buyers in the holiday homes market, with most of these being cash buyers mainly in the price range from R1.1-R1.3 million. These are mostly out of town purchasers from Gauteng, who feel the market is at a point where they can capitalise on the good buys available before the market turns and prices start rising once more," says Cousins.

"At present such buyers are securing excellent value for money, acquiring front row beachfront homes comprising three bedrooms and two bathrooms - along prime Beach Road - for these prices. Interestingly at the lower end of the market in the R450 000 / R500 000 price bracket there are also buyers paying cash or with high cash equity. For these prices you can buy a two bedroom, one bathroom townhouse in the Amanzimtoti or Berea areas."

"There's also an upturn in enquiries from local buyers seeking primary residences in the R1.5-R3 million price range. Many of these have been renting homes and now wish to acquire their own home at a time when they can benefit from lower prices."

Cousins says being holiday season at present the area is buzzing with visitors. "However most of our enquiries are either off the Internet or showboards rather than 'walk-in's'. The positive news is that our agents are very busy with enquiries once more and the fact that the new Galleria shopping centre is soon to open is further boosting interest in the area." He says a new trend noted is a demand from those currently residing in areas such as Isipingo who wish to upgrade to areas such as Athlone Park.

He adds the long term rentals market is showing a marked improvement with PGP's office seeing a 30 percent increase in units let compared with six months ago. "While the average enquiry is for a home in the region of R4 000 per month, we are also seeing a good demand for upmarket homes and have recently concluded a number of leases for three bedroom homes in the R12 500-R15 000 per month price range, as well as a four bedroom home let for R16 000 a month. One of these is a three bedroom apartment in Lagoon Point, one of the more upmarket buildings, let for R15 000 per month."

Issued by Gaye de Villiers

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