With easy access to the Drakensberg Mountain range and about a two hour drive from the KwaZulu-Natal coastline, the scenic Underberg area is experiencing a substantial increase in enquiries from home buyers.
This level residential stand in Underberg is on the market for R375 000 - click here to view.
This is according to Angela Walker, area principal for Pam Golding Properties (PGP), who says most buyers are looking to buy homes under the R1 million mark, while interest in vacant land is for ‘bargains’ below R300 000. She says while they are often still experiencing buyer resistance to prices, sentiment is positive and interest and sales of all types of properties have improved over the past six months.
Walker says freestanding homes in the price range between R1 million and R1.75 million are typically popular in areas such as Underberg or Himeville, where young families continue to settle in order to provide their children with a healthy, country lifestyle. Interestingly, after some years of few sales of vacant land, they have seen renewed interest with three or four recent sales between R175 000 and R265 000 of stands varying in size from 2 000 to 4 000 square metres, she says.
“Also positive is that we have seen a flurry of sales within gated complexes, including Fairmount Country Estate, which features just 26 properties on freehold stands with common property, overlooking the Underberg Golf Course.” Here, PGP’s most recent sales achieved prices of around R2 million each for completed three bedroom, three bathroom homes. Walker says Mountainairs Village, a well-established sectional title development, is always popular, particular for retirees.
This three bedroom home has three bathrooms, a well-equppied kitchen, study, dining room with fireplace and an extensive outdoor entertainment area. It is priced at R799 000 - click here to view.
PGP reports that another sector of the market which is experiencing a revival is the leisure homes market. Walker says smallholdings are mostly in demand for leisure use among those living on the KwaZulu-Natal coast and they have recently sold a number of these between four and 20 hectares in size and ranging in price from R1.5 million to R4.6 million. Prices vary according to the type of improvements, outlook, views and whether there is water or river frontage on the property.
An appealing property which has all these qualities in abundance is a smallholding of 30.8 hectares, which is tucked away in a tranquil valley in Himeville, close to the famous Sani Pass route into Lesotho, she says. With a four bedroom gracious country homestead as well as charming ‘Acorn Cottage’, the property includes extensive kitchen gardens and fruit trees providing year-round fresh produce as well as bee hives which provide a private stock of honey. Offering mountain views as well as those over the Mkomazana River and dam, this tranquil property, set in spectacular surroundings is priced at R8.9 million.
In Kokstad, a rapidly growing town on the slopes of the Drakensberg, the market appears to have softened over the past 18 months, certainly from a price perspective, says Walker. Overpricing and over-valuing remain an issue in the area, with successfully concluded sales often being considerably below the asking price, she says. Realistically priced, good quality properties still achieve their asking prices, but the average property struggles if it is overpriced, as buyers are well-informed regarding the market.
This Himville home has three bedrooms, two bathrooms, a kitchen and reception area. It is on the market for R1.05 million - click here to view.
“Currently, the average price of a residential property in Kokstad is around R1 million. To give a broader view of the different price bands, a two bedroom home in Extension 7 or Longhomes would cost around R500 000, a three bedroom home in a fair area of town would be priced at R1 million or R1.5 million to R2 million in a good area of town, while the most appealing homes in the best areas would cost between R2 million and R4 million, with R2.5 million being the average for a good quality home in town. Smallholdings range from R1.5 million to R5 million for sizes that generally range between five and 50 hectares.”
Walker says Kokstad is experiencing good demand for homes across all price ranges, but especially in the price bands from around R500 000 to R700 000 and over R2 million. She advises buyers to be prepared to put down a deposit rather than try for a 100 percent bond.
With a shortage of stock, she says the town is experiencing a huge demand for rental accommodation, with two bedroom flats fetching R5 000 to R6 000 per month and one bedroom units from R3 000 to R4 000 per month. As a result of the short supply, Walker says prices continue to rise and unless the town expands and introduces further stock to cater for this market, the status quo will remain.
There are plans to build low/medium quality housing, but this will be slightly further out of town and will not alleviate the demand from those who wish to live in town, close to jobs and amenities, she says.
Walker adds that in the commercial property market, there is a strong demand for retail space but little quality stock available as owners are holding onto their properties. These are sought after primarily as rental investments but also from owner occupiers due to the high rentals tenants have to pay, often in the region of R150 per square metre.
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