Upcountry buyers target ‘Toti

Beachfront property in Amanzimtoti on KwaZulu-Natal’s South Coast is again finding favour among buyers from South Africa’s interior regions.

Deidre Ronnenberg, owner of the local Aida office, says buyers of holiday apartments and flats starting reappearing in the local market in October last year. “After a relatively quiet period in the first three quarters of last year, interest picked up as buyers and investors judged the timing to be right,” she says.

“Lower interest rates and indications that the market had reached the bottom of the current economic cycle spurred new interest, while the upcoming Soccer World Cup tournament definitely contributed to renewed buying activity.”

Elmarie du Plessis, manager of the Seeff office in Amanzimtoti, says upcountry buyers are indeed a formidable force in the market. “We have an immense amount of upcountry investors that hail mainly from Gauteng. They comprise about 60% of our buyers.”

Ronnenburg says two-bedroom, two-bathroom beachfront apartments currently lead the pack in buyers’ choices and those priced at R600k and R800k garner the most interest.

Du Plessis agrees with Ronnenburg, emphasising that apartments between R500k and R800 are in high demand right now. “However, the Toti market is definitely still a buyers market with lots of properties and modest demand. Distressed properties are still plentiful and significant price growth hasn’t materialised yet.”

Ronnenberg adds that house sales are also showing signs of renewed activity. “Toti’s fortunes were boosted by the completion of the new Galleria shopping mall as well as planned upgrades to infrastructure by the eThekwini municipality. The new shopping centre not only serves local residents, but also draws shoppers from neighbouring towns and holiday spots.”

She says the trend to upgrade has also taken root among property owners and new buyers. “Older units are being refurbished, giving Toti a fresh, new appeal,” she says.

Ronnenburg says houses are selling at prices from about R800k for three-bedroom units with double facilities up to R4m for luxury homes that are suitable for use as guesthouses.

Du Plessis says the Soccer World Cup is proving to be a big boon to the Toti rental market. “The enquiries and bookings are starting to pour in. The biggest demand is for apartments, but also houses, in the R600 to R1,200 range.” – Eugene Brink

For more information contact Deidre Ronnenberg on 031 916 4215 or Elmarie du Plessis on 031 916 5258.

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