The July riots had a significant impact on the economy and the property market in KwaZulu-Natal in particular. However, industry experts have noted an uptick in Umhlanga and Durban North in the higher price bands in particular.
The residential property market in the uMhlanga and Durban North areas has recovered across all price bands, particularly up to the R6 million mark, says Pam Golding Properties area principal for Durban Coastal, Carol Reynolds.
“Our statistics on turnaround times and trends reveal that properties which are correctly priced are selling within 20 to 30 days and are achieving 95% of asking price. Properties that are priced 10% above true market value are taking longer to sell, and then achieving 80% of asking price," says Reynolds.
“This demonstrates that now more than ever, correct, intelligent pricing is absolutely critical to sales success. Sellers are advised to price correctly to ensure a quick sale at a good price as the longer stock sits on the market, the more ‘stale’ it becomes and the lower the eventual price achieved.
“For buyers, we recommend they you get pre-qualified for mortgage finance and if you need to sell before buying, rather sell first than having to make offers conditional upon selling as your negotiation power improves dramatically when you are a qualified buyer.”
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Durban North currently *175 new property listings, according to Property24 Tends Data, with the average asking price for the area being R2.995 million. The average sale price per erf for 2020 was about R2.5 million, while Section Scheme Units average sale price for the same period is R1.4 million.
Three-bedroom homes are most widely available at an average listing price of R2.75 million. The average age of sellers in the area is above 65-years, while 46% of buyers are between the ages of 36 and 49 years old.
Reynolds says that the residential property market in the uMhlanga beachfront area is performing well. “Position is key and with limited supply, this area tends to hold its value and appeal. Properties in this prime location sell mainly between R1.5 million and R10 million for apartments, while freestanding homes in the uMhlanga and La Lucia areas achieve prices from R4 million to R15 million.
“In addition, estates such as Signature in Sibaya precinct have performed well with resales achieving sound capital growth. For example, vacant plots of approximately 2 000sqm that originally sold for R9 million have resold for R12 million in two years.
“While these areas north of Durban have high appeal for a mix of buyers, mostly local in our core residential market, in the residential development space 50% of our buyers are from Johannesburg – the latter an ongoing trend for several years.
“Positively, we have almost sold out on two developments in less than eight months. Kent in La Lucia is under construction with only three units remaining priced from R1.5m while Onyx in uMhlanga has five units remaining selling from R1.2 million and is also under construction. Despite the lockdown and subdued economic climate, Onyx has sold extremely well. Kent launched in December last year (2020) and was 50% sold out by February this year (2021).”
“This indicates that investor appetite remains strong in our coastal areas. We have recently launched the final phase of Oceans Hotel apartments which is already 60% sold. This 5-Star development is set to become the most iconic landmark project in the heart of uMhlanga village, and is the epitome of luxury living in the most superb location. Endorsed by the 5-Star Radisson Blu Hotel, Oceans offers a unique investor product with extremely good returns. Ideal for Johannesburg investors seeking their own 5-Star apartment in the best pocket of uMhlanga with a full hassle-free managed service plan, this is the perfect low-maintenance, high reward investment,” adds Reynolds.
“Recent high-end sales transactions by our office during 2021 include houses in prime locations in La Lucia which fetched R12.5 million, R16 million and R16.75 million respectively.”
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