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Invest in KZN’s North Coast before property prices start climbing

27 Feb 2019

Anyone who has spent any amount of time flipping through the property section of a newspaper or online news portal is likely to have seen at least one article mentioning the enormous growth potential surrounding the north coast of KwaZulu-Natal. The questions is, how long will it take before property prices grow to match the level of development in this region?

This four bedroom, two bathroom townhouse in La Lucia has an entertainment deck with pool and built-in braai, garaging for four cars, and more. It is on the market for R4.599 million - click here to view.

“In the RE/MAX National Housing Report for Q4 2018, KZN claimed two of the top five positions for the most searched suburbs on remax.co.za - La Lucia placed second, and Durban North fifth - which alludes to rising interest in the province. However, according to statistics, the change in median asking price has seen steady but slow growth over the last number of months. Also, according to Lightstone’s latest residential property indices report, house price growth in the Ethekwini Municipality has remained stable, but below the growth curve for City of Cape Town and Nelson Mandela Bay Municipalities for the 2017 to 2018 period,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

This four bedroom, four bathroom home in Simbithi Eco Estate, Ballito, boasts sweeping views and a contemporary open-plan layout. It has a covered patio and pool, and is selling for R20 million - click here to view.

“Thus market data reflects the reality that, although the region has gained interest from property portal searches and from a media perspective, it is still too early for the ongoing development in the area to have increased property values just yet.”

This seafront triplex in Umhlanga Rocks has three bedrooms, three bathrooms, a pub area leading to the covered patio and private garden, and more. It is on the market for R3.3 million - click here to view.

Grant Gavin, Broker/Owner of RE/MAX Panache operating in Durban North and La Lucia, explains this reality in terms of simple economics - supply and demand. “On the supply side, we are seeing a lot of new homes coming onto the market, in part owing to the many new developments which seem to be selling very well, but also largely owing to economic pressure and uncertainty homeowners are currently experiencing, as well as emigration.”

This five bedroom house in Zimbali Coastal Resort & Estate, Ballito, offers generous living areas and a self-contained granny flat. It is selling for R8.5 million - click here to view.

“On the demand side, we have a slightly depressed market with buyers holding back for the time being. The trend in these markets is for downward pressure on asking prices, which explains why our current market has yet to show signs of house price growth. House price growth will only take root once the demand outweighs the supply, which is unlikely to happen within this year. It seems likely that price growth should be fairly flat, certainly for the first half of 2019, in line with previous years,” says Gavin.

This home in Umhlali Golf Estate, Ballito, has four bedroom suites, a unique koi pond, gourmet kitchen, study, triple automated garage, and more. It is selling for R5.6 million - click here to view.

“That being said, I do still believe that the North Coast is a hotspot for future growth in the province - and not just around Umhlanga and Umdloti, but further north too. If you look at what has been developed in Umhlanga, Cornubia, and in Ballito, one can see why the trend of people moving further north is set to continue.”

This three bedroom, two-and-a-half bathroom townhouse in Umhlanga Rocks has a large wrap-around garden, covered patio and two entertainment areas. It is on the market for R3.45 million - click here to view.

With strong demand for north coast living likely to stimulate longer-term price appreciation, Gavin says it would therefore be wise to get in early before house prices in these areas begin to climb in the years to come. “Now really is a great time to buy.”

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