The KwaZulu-Natal (KZN) property market, which has faced significant challenges over the past few years, is showing promising signs of recovery. With the ongoing stabilisation of interest rates, political reforms, and substantial infrastructure development, homeowners and potential buyers can look forward to a revitalised property landscape.
Unique smallholding in Balgowan, Howick on the market for R4.65 million
For the past three years, KZN has been grappling with high interest rates, political instability, and infrastructure backlogs which have hindered property sales and overall market performance. However, recent indicators suggest that a turnaround may be imminent.
David Patrick, Owner and Principal of Harcourts Patrick & Co, expressed optimism: “The challenges we have faced have influenced our local property market. The main challenge remains the high interest rate. Once the rate reduces, more buyers will be able to qualify and afford a mortgage bond. Increased demand would then exceed supply, and prices will see an upward push.”
According to Jo Giraudeau, manager for Seeff Mid-South Coast, the KZN Mid-South Coast property market is improving with buyer enquiries spiking notably after the elections. "Positivity is also building further on the back of a potential interest rate cut in September".
Exquisite Coastal Retreat in Clansthal, Umkomaas on the market for R15.85 million
Political reforms following the recent National and Provincial elections have contributed to a stabilising environment. Brian Wilkes, Owner and Principal of Harcourts Hilton, notes, “Migration out of KZN has slowed, and many potential sellers are finding the cost of properties in the Western Cape above their means. The new coalition-led local government brings renewed hope and positivity to the Province.”
Off the grid home in Hilton Central, Hilton on the market for R 2.995 million
Infrastructure developments are also set to boost KZN's attractiveness. The completion of key transport networks, such as the N3 highway, is expected to enhance connectivity and encourage both residential and commercial investments. Patrick adds, “The KZN Midlands is home to some of the best schools in the country, and the warm coastal climate attracts holidaymakers from around the globe.”
With South Africa's broader economy showing signs of recovery post-pandemic, KZN stands to benefit from increased economic activity and job creation, which could positively impact the real estate market. Patrick advises, “Now is certainly the time to invest in KZN! As interest rates begin to come down, we anticipate a further boost in market recovery.”
Richard Gray, CEO of Harcourts South Africa, emphasises the importance of remaining optimistic: “While KZN's property market has faced significant hurdles, the signs of recovery are encouraging. The combination of improved governance, economic recovery, and infrastructural advancements will play a crucial role in rejuvenating the market.”
As consumer confidence rises, the KZN property market appears poised for a resurgence. Homeowners and potential buyers should keep an eye on these developments as they unfold, as the opportunity for investment may soon be more favorable than ever.
KZN Mid-South Coast readies for buyer influx as property makes a comeback
Agents have noticed a lot of South African expats returning to the country, and enquiring about residential properties between Pennington and Clansthal. Additionally, where demand was mostly around the R700,000 price range on average, it has now shifted upwards to around R1.2 million. Giraudeau says further that as bonds have become harder to get, they are getting more cash offers and larger deposits to aid the bond applications.
The trend of purchasing at a lower rate and renovating has changed. People are now wanting move-in ready properties or houses with second dwellings for family or income generating options.
She says the Mid-South Coast still offers the best value for property buyers and investors with prices which are far more accessible compared to other areas. The lifestyle offering is also unmatched with a slower pace, warmer climate and long summers, and the warm, Indian Ocean. The area is renowned for its fabulous beaches including some of the country’s best surfing beaches, fishing, snorkelling, body boarding, and rivers and lagoons.
Beautiful family home in Pennington on the market for R1.8million
The Mid-South Coast is also very accessible for inland provinces, especially Gauteng visitors and retirees. It is just 45-minutes from Durban and just over an hour from King Shaka International Airport. Those who want to escape the Durban metro can settle here. It is a holiday and retirement hotspot. You will often find people investing in a holiday home with the view to later settling here for their retirement.
There is also a lot of development in the pipeline as the area has become a focal point for development and potential growth, she says further. The multi-billion-rand Renishaw Coastal Precinct development project in Scottburgh is one of the biggest in the country. The first phase, being a residential development (Renishaw Hills), has already seen its property values increase by 60% in just six years. The next phase includes a shopping centre and filling station, and plans for a private school and church.
Another boost for property investors and residents in the area is the formation of the GPU (Government of Provincial Unity) which has boosted expectations of a revival of the area. Recently, a media statement was issued indicating cooperation between COGTA and the Umdoni Municipal area (which covers the Scottburgh and Clansthal area) to stabilise service delivery in the areas. The R20 billion uMkhomazi Water Project is also progressing. There is also the long-term Umkhomazi Local Area Plan which sets out tremendous plans for upgrading of roads, various developments including more residential developments, and upgrading of beachfront areas and tourist facilities.
Community involvement is also evident here with regular community clean-up and restoration initiatives, and regular beach cleanups as part of the Conservancies KZN movement. There is also the Sapphire Coast Tourism project which promotes attractions and facilities in the area.
A gem of the area is Clansthal, a small residential area fronted by Clansthal Beach which lies between Scottburgh and Umkomaas. It lies within the Clansthal Conservancy, between the Mhlongwana and Mhlongwa rivers. A landmark here is the Green Point lighthouse which is a vital beacon to warn ships of the Aliwal Shoal (a reef about 5 kilometres off the coast of Umkomaas consisting of an ancient sand dune).
Giraudeau says the area appeals mostly to older buyers and tenants, but lies in a popular tourist and holiday coastal belt. There are only about 149 properties of which 80% is freehold with a median value of R2.5 million. According to TPN data, the average rental price is around R8,000 for sectional titles, and R10,000 to R16,000 for freehold property. Rental yields have been outstanding at just under 10% for sectional titles and around 6.5% for freehold.
The most exclusive property here, situated in Green Point Drive with direct beach access which extends to the high-water mark (included in the Title)is on the market for R15.85 million. She says properties with direct beach access are rare, and very few extend to the high water mark, and almost never come onto the market.
The secure property includes a large house in a coastal vernacular architectural style with clapperboard exteriors and shutters and excellent finishes with seven bedrooms with en-suite bathrooms as well as three flatlets, plenty of parking, a swimming pool, and play area with a jungle gym and trampoline.
Added features include underfloor heating, a backup solar heating system, borehole with water filtration, and an outdoor shower for when you return from the beach and the property is secure. The house is fronted by an outdoor area with large Balau decking and multiple sitting areas overlooking the swimming pool and ocean. There is also an outdoor shower and gate for accessing the beach.
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