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Wealthy South Africans are buying property on KZN’s North Coast

06 Aug 2019

The AfrAsia Bank SA Wealth Report for 2019 has named the Durban, Umhlanga and Ballito corridor as the fastest growing wealth market in South Africa, with a 25% growth trajectory reported over the last decade.

This three bedroom, three bathroom villa in Balize Private Estate on KwaZulu-Natal’s North Coast will have uninterrupted sea views. It is on the market for R7.1 million - click here to view.

Comparatively, between 2008 and 2018, Cape Town saw 11% growth and Johannesburg saw a 9% wealth growth. This, coupled with the fact that Durban has been awarded the best lifestyle city in South Africa for the last few consecutive years according to the Mercer 2019 Quality of Living Index, is evidence that Durban is fast becoming the destination of choice for high-net-worth individual (HNWI) investment in property.

Among the list of criteria by which the metrics of the report are set, the AfrAsia SA Wealth Report 2019 also lists the top assets in which HNWIs are investing. Property, both local and offshore, still remains on the list accounting for just above 28% of HNWIs investable assets.

This two bedroom, two bathroom apartment in Balize Private Estate on KwaZulu-Natal’s North Coast will have uninterrupted sea views. It is on the market for R4 million - click here to view.

Within KwaZulu-Natal’s North Coast alone are three key growth areas: Umhlanga, Ballito and the Sibaya Coastal Precinct. Although Umhlanga and Ballito are deeply established residential areas with a mix of housing types and price points, the Sibaya Coastal Precinct is officially only a few years old, with development happening on a continuous basis. However, recent buyer activity in the Sibaya Coastal Precinct is showing that this node is fast catching up with the likes of Umhlanga and Ballito as a desirable property destination, and further bolstering the evidence that this corridor is seeing the results of this regional wealth growth. Within the node itself, high-value homes have been sold within the range of R10 million to R80 million. This is staggering considering that currently only a handful of residential estates have launched.

“The sentiment pre-elections was that we would see a significant drop in property sales, however Balize Private Estate has just recently sold two properties valued at over R10 million each. This is testament that property remains a desirable and attractive investment option with even high-priced properties being snapped up, especially along the Umhlanga to Ballito corridor,” says Peter Cameron, Sales Director of Balize Private Estate.

This four bedroom, four bathroom villa in Balize Private Estate on KwaZulu-Natal’s North Coast will have open-plan living areas, a private terrace and sea views. It is selling for R8.6 million - click here to view.

Buyer activity has also shown a steady influx of people from Gauteng choosing to set up primary residence along this corridor and choosing to commute into and out of Johannesburg for business.

“Durban has pipped Gauteng and Cape Town to the post as the best performing growth node in South Africa. Durban has historically been seen as offering little more than sunshine and the seaside, but investors are choosing with their feet and showing that Durban really stands head and shoulders above its sister cities in terms of quality of life. The North Coast of Durban boasts high-end residential property, shopping malls, premium schools, and what’s more, the Umhlanga Ridge has become a home for blue-chips and business heavyweights. This is also strengthened by a high degree of accessibility - getting to and from main roads and highways is fairly easy along KZN’s North Coast,” says Cameron.

Despite an average residential property price drop across the board over the last decade, some residential segments have seen major growth, most notably homes within luxury residential estates and luxury sectional title apartments.

This three bedroom, three bathroom apartment in Balize Private Estate on KwaZulu-Natal’s North Coast will offer integrated indoor/outdoor living and uninterrupted sea views. It is selling for R5.2 million - click here to view.

“Balize Private Estate offers buyers both luxury sea-facing freestanding villas and apartments within a secure estate. Being within the Sibaya Coastal Precinct only adds value to Balize, and with that, appeals to out-of-towners due to the high degree of accessibility to main roads and highways and King Shaka International nearby,” says Cameron.

“Historically Durban is simply less congested in comparison to the CBDs of Cape Town and Johannesburg. The push northwards has been driven by the establishment of Durban’s new CBD on the Umhlanga Ridge, and if your daily commute is from the Umhlanga Ridge to the Sibaya Coastal Precinct and back, you’re certainly not going to sit in a backlog of traffic for hours on end before you reach the highway to home.”

The AfrAsia Bank SA Wealth Report 2019 also lists the criteria which are managing to attract and retain HNWIs in the area. Among them are lifestyle aspects like the warm climate, good private schools, shopping centres and robust private healthcare.

This double-storey villa in Balize Private Estate on KwaZulu-Natal’s North Coast will have four bedrooms, four bathrooms, sea views and more. It is on the market for R10.5 million - click here to view.

Moreover, it is estimated that in excess of 40% of HNWIs own property in gated estates, both as primary residential homes and as secondary properties. Among the list of factors for the popularity of gated estates are safety and security, lifestyle and sporting amenities, a sense of community and vital lifestyle aspects like central piazzas, playgrounds and schools, and safe spaces for children with controlled traffic and thoroughfares. There is nothing in Durban like the Sibaya Coastal Precinct, and it has shown itself to be a magnet for prime property investment. The precinct will offer private schooling and university, a retail piazza and medical suites as well.

“The desire for ‘neighbourhoods within neighbourhoods’ is becoming increasingly popular, as is the desire for what is termed ‘parkland estates’. This is where investors at Balize Private Estate can see value - the Sibaya Coastal Precinct is designed to create smaller pockets or neighbourhoods within, but still maintain and encourage an open, accessible sense of community with the inclusion of green spaces, nature boardwalks and central public areas such as the retail piazza,” says Cameron.

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