Downsizing seems to be the main reason for people selling in Amanzimtoti on the KwaZulu-Natal South Coast.

So says Schalk Pienaar, agent for Seeff in the area, who adds that this is mainly as a result of financial troubles. “Houses and apartments under R1m are selling well at the moment due to people looking for something smaller and cheaper.”

“However, there are very few first-time buyers as they can’t really afford to buy at the moment. On average, someone who’s looking to buy for the first time can expect to pay somewhere in the region of R650k.”

Terry Cousins, Pam Golding Properties (PGP) area principal, says second home or leisure home buyers are re-emerging and showing keen interest in homes in the Amanzimtoti area and confirms the under-R1m buying trend.

“There’s a strong appetite for homes below R1m as well as an increased demand mainly up to the R2m mark. We’ve recently sold a considerable number of holiday flats in the R600k price range, mainly in the quiet coastal hamlet of Winkelspruit. These are brand new units which became available in a development project right at the end of the housing boom and which are now being snapped up both by leisure and first-time buyers,” he says.

“We’re also seeing high interest in older blocks of holiday flats and apartments in this same price range up to approximately R2m.”

Cousins says the relocation of the airport to north of Durban has precipitated interest from buyers wanting to move to quieter areas on the south coast – but still within easy reach of the city. “While no decision has as yet been made regarding the future of the old airport, we believe it would be positive for the area and the local economy if the site were to be retained as a domestic airport.

“Generally, we are definitely seeing an uptake of homes due to the pent-up demand created during the recession.”

However, Pienaar says price growth is hamstrung by an oversupply of stock on the market. “Prices are still falling due to the large amounts of stock on the market. The problematic financial situation of many potential buyers is also a huge brake on sales and the reduction of available stock.”

“A well-priced property will take on average three to four months to sell. But my estimation is that there are still too many overpriced properties in Toti and this is also adversely affecting the market recovery.” – Eugene Brink

For more information contact the Terry Cousins on 031 903 0400 or Schalk Pienaar on 082 836 3770.

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