The KwaZulu-Natal North Coast, and Ballito and Umhlanga in particular, is seeing a growing number of buyers, especially from Gauteng, looking to become permanent residents whilst investors are returning to these areas.

The new King Shaka International Airport is also having an immensely positive effect on demand.

John Pechey, broker/owner of RE/MAX Dolphin Realtors, which covers the KwaZulu-Natal north coast from Westbrook through Zimbali to Ballito, Shaka’s Rock, Salt Rock and Sheffield Beach as far as Zinkwazi, says the buyer mix along the North Coast is now approximately 60% holiday home owners and 40% permanent residents. “This is quite a change from the 80/20 split the area’s property market had in the past,” he says.

“Permanent rentals are also in huge demand, especially from employees at the new airport.”

“While a high percentage of property investors in these areas are holiday home buyers from upcountry, the demand for permanent residential property is definitely on the increase.”

Pechey attributes this demand partly to the opening of the new airport. “This development has and will continue to have a major positive effect on the area.”

He says many Gauteng buyers are relocating their families to the Ballito area and the husbands are commuting to Johannesburg from Monday to Friday.

Clive Greene, area principal for Pam Golding Properties (PGP) in the Ballito area, says the suburbs of Ballito and Salt Rock are showing a marked increase in activity as more permanent buyers are looking. “The secure estates are proving to be a big drawcard with Simbithi showing phenomenal demand. Popular prices are ranging between R1,5m up to R5m.

“Interestingly, in these areas most buyers are permanent or purchasing with a view to moving here in the next few years.

“Zimbali is still proving to be a massive drawcard. This estate is a secure estate offering absolute security in luxurious surrounds. It is upmarket with entry level at about R4m and going up to R35m. We’re also seeing a big increase in Gauteng buyers who are willing to commute and looking for a more relaxed lifestyle.”

Greene says investors are a force in the market again and they are looking at beachfront sectional title properties with prices ranging from R1m up to R10m, as well as the secure estates.

Greene says the new airport has increased demand for entry-level property and a huge increase in rentals. “There is a big increase in enquiries on property across the board and there is no doubt that within the next two years the airport will impact hugely in a positive fashion on the property market.”

Another indicator of the influx of permanent residents on the North Coast, says Pechey, is the high level of demand for vacant land in the gated estates and the fact that “retirement” planning is on the increase. “Developers are actively seeking out sugar cane farms for re-zoning to residential, and development sites are scarce. There is also a huge demand for small homes under the R1m mark from first-time buyers and those looking to retire.”

He says the area has a wide array of properties ranging from entry-level homes to upmarket, prestigious homes that sell in the region of R30m. “However, on average, a two-bedroom, two-bathroom apartment would sell for around the R800k mark, while a typical three-bedroom, two-bathroom home would be priced between R1,6m and R2,5m.”

Elwyn Schenk, PGP area principal in Umhlanga, reports a deadlock in his area with buyers looking for bargains, and sellers holding out for price. “Anything up to R2m is selling well because of more readily available bond finance as well as properties over R5m, where bonds are not an issue.”

“Apartments of all sizes are selling well. Whilst the building of new developments has slowed down substantially, well-priced new projects, especially apartments and gated estates, are of appeal to end users and investors alike. Quality upmarket homes are also selling, mainly to SA buyers.”

Greene says at the moment prices in Ballito are remaining constant with no real increase on average selling price. “We foresee that in the next five years prices will increase as much as 50% in the selling price levels of property between R1m and R5m.”

Looking to the future of property along KwaZulu-Natal’s north coast, Pechey foresees huge growth over the next three years and says the area is positioned as one of the biggest growth nodes in the country. “The KwaZulu-Natal North Coast will always remain a sought-after area,” he says. – Eugene Brink

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