Around 70% of the sales in Scottburgh on Durban's South Coast are holiday homes.
So says Michelle Harris, principal of Seeff Properties Mid-South Coast, who adds "we have also had an increase in overseas interest in holiday homes and also in buyers now living overseas who want to come back to South Africa and are looking to buy small businesses".
"Our sales year-on-year (y/y) in total grew by 169% to end of June. Our clients are made up of people wanting to downsize, who come from our area, and investors who pay cash and are looking for bargains. A small percentage of buyers are looking for retirement homes – properties in small, secure complexes.
Harris outlines the current property prices in various categories: "In Scottburgh houses range from R925k to R3,2m, while flats are priced from as little as R510k for a one-bedroom flat up to R1,7m - R2,75m for very upmarket apartments."
"In neighbouring Pennington houses are priced from R750k up to R13m. In Clansthal the average price for houses is R3m – but if they are on the beach you are looking in the region from R7m upwards."
There has been a lot of revamping, upgrading and growth in the area, says Harris. "The shopping centre has doubled in size in the last two years, and there is the new retirement lifestyle village development."
Harris describes the rental market in the area as having grown by leaps and bounds.
"We have done 50 new rentals so far this year – mainly to people from Johannesburg who have relocated to work in Durban and want to live in Scottburgh. Rentals range from R2,200 per month for a bachelor flat to R5,500 to R7k per month for an average three-plus bedroom home. People who are battling to buy because of the stringent National Credit Act (NCA) requirements have also caused a huge demand in rentals."
Neville Collett, owner of the new Chas Everitt International South Coast office, says "the holiday rental market is faring surprisingly well despite the recession, with daily rates for units on the beachfront ranging from R1,200 in low season to R2,500 in high season".
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