The Umhlanga property market continues to perform outstandingly well. It was a record-breaking year according to Brett Botsis, Seeff's licensee in the area, and according to Lightstone data, R3.2 billion in transactions were recorded between January 1 and September 30 at a median price of R4.4 million.
Since the onset of the pandemic there has been a significant uptick in sales in the R5 million to R10 million range. Botsis says there were also about 23 sales over the last year above this, mostly in estates such as The Executive Estate and Izinga Estate and freehold houses. Two properties also sold above R20 million in Izinga Estate.
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Seeff agents Anni and Warren Eisele have already concluded R60 million in sales for this year. This includes high-value sales in the San Marina apartment complex at R12.5 million (just below the asking price of R12.9m) and R15 million for the full asking price.
Botsis says the pandemic has been a tremendous boost for the Umhlanga property market, with more local buying as well as buyers increasingly coming from upcountry provinces, especially Johannesburg. Umhlanga is a wealthy enclave with more people semigrating here including local and upcountry executives and wealthy buyers.
Umhlanga is the new “it” area of Durban North. It benefits from the close proximity to the airport, and even by car is only about a six-hour drive from Johannesburg. Aside from being a fabulous residential area, it is a holiday hotspot and is drawing increasing demand for second homes. Botsis says the pandemic has spurred property owners to flock here whenever they can which has been a great boost for second homes.
Umhlanga not only ranks with areas such as the Atlantic Seaboard and Plettenberg Bay as among the most popular areas for wealthy buyers, but property here has proven to be a solid investment. Values have grown by around 6% annually over the last five years which is well above the average capital growth rates, he adds. There is also a strong rental market which is an attractive benefit to rental investment buyers.
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Umhlanga has currently *453 new property listings, according to Property24 Trends Data, with the average asking price being R365 000 vs the average selling price of R1.895 million.
The average sale price for a sectional title for the 2021 period was about R2.4 million while erf average sale price for the same period is R3.4 million.
The latest residential listings on Property24 show that two-bedroom homes are most widely available, at an average list price of R2.45 million.
75.4% of the sellers are older than 49 years old, while 57% of buyers are younger than 49 years old.
Click here to see all the sale and listing price trends in Umhlanga
The rise in demand has seen price ceilings lift with buyers investing in more high-end apartments and homes and the volume of sales above R5 million is significantly higher compared to 2019. The same applies to sales in the R10 million to R20 million price band.
Although buyers are traditionally in the 36 to 49-year age group, there has been an increase in younger buyers who now comprise about 27% of recent property purchases.
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According to Anni and Warren Eisele, sectional title property is a popular option and comprises about 70% of all market stock. The balance is freehold, 6% of which is in estates.
Apartment prices range from around R1.6 million to just over R2 million in The Breakers Resort. The agents say the complex is an excellent holiday investment as there is high demand for rentals in the complex which offers excellent amenities including swimming pools, a tennis court, putt-putt, a restaurant, and more.
Bigger apartments range from around R2.4 million to R3 million. Townhouses are another good option in the sectional title category with prices in the R3 million to R3.6 million range in Kindlewood Estate for example.
There is also a choice of luxury apartments which sell from around R4 million. Also in high demand are the penthouses such as the penthouse in Pearls of Umhlanga for R39.5 million and the 817sqm duplex penthouse in Oyster Schelles for R35 million, both offering a superior lifestyle experience and ocean vistas as the eye can see.
The gated estates and top-end sectional title properties close to the beach are also in high demand. Luxury homes tend to sell from R5 million to R9 million on average with super luxury homes ranging to around R24 million.
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*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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