Data from Lightstone reveals that there is a fair amount of variation in the average house price of properties for the different provinces, but also between different holiday towns.
Priced at R2.36 million, this three bedroom apartment in Shakas Rock is selling through Harcourts Ballito. Click here to view.
In KwaZulu-Natal, some towns on the coast show a downward trend in average price as one moves further away from the beach.
Of interest, the trend flattens out at around 600 metres for the South Coast towns and at around 800 metres for Durban and Ballito.
At these break points the impact of the distance-to-beach on the average price has deteriorated but does not significantly affect the property price anymore, according to Lightstone.
In the Eastern Cape for example, data notes that the difference in average property price between Port Alfred, Port Elizabeth and Jeffreys Bay is insignificant for properties situated between 1 000 and 2 000 metres away from the beach, as it converges to a value of about R1 million.
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According to Lightstone, the price bubble seen in Durban between 800 and 1 400 metres from the beach can be attributed to the high value northern suburbs like La Lucia, Glen Ashley and Virginia where the majority of the properties lie a bit further away from the beach to the west of the M4 highway.
Buying a beach property in KwaZulu-Natal
Briefly talk about beach properties and what their prices are and where these are located?
Ballito's beachfront property prices range from R1.45 million to R2 million, with the odd R3 million plus for sectional title properties on the beach.
Some freehold properties cost up to R6.5 million while in the Sheffield area, these can cost up to R19 million, explains, Hendrik Vos, manager at Harcourts Ballito.
In Scottburgh a block of flats (20 units) with direct beach access was sold for R7.8 million while further down south towards Kelso, a development with log homes has properties priced from R2.5 million up to R3.2 million, says Du Randt.
According to Ida Du Plooy, principal at Harcourts Dolphin Coast in Ballito, property prices in the greater Ballito area are mostly in the higher range compared to other places in the country.
“The average selling price for apartments is around R1.5 to R1.8 million for three bedroom units and not on the beachfront.”
Du Ploy says beachfront properties sell on average for around R2.5 million and more and recently, a beachfront property was sold for R7.5 million.
Houses sell from R1.8 million plus for a house not located on the beach while houses on the beach are listed from R8 million and more, notes Du Plooy.
The beachfront area stretches from Umkomaas down to Hibberdene, says Azelle Du Randt, principal at Harcourts Scottbay on the KwaZulu-Natal South Coast.
In Clansthal, a coastal suburb just north of Scottburgh, the agency is selling a prime property offering 180 degree sea views and just a walk down to the beach at a price of R19 million.
In Freeland Park Scottburgh, a two bedroom apartment is selling for R1.61 million through Harcourts Scottbay. Click here to view.
Du Randt explains that Widenham is an area close to Umkomaas and properties with lovely sea views are priced between R2 million for vacant land and up to R6.5 million.
“These propertie,s however, don’t have direct access to the beach as you have to cross the railway line.”
Lock-up-and-go apartments in Scottburgh with direct beach access would vary between R980 000 for a two bedroom apartment up to R1.6 million, depending on finishes.
In Scottburgh a block of flats (20 units) with direct beach access was sold for R7.8 million while further down south towards Kelso, a development with log homes has properties selling from R2.5 million up to R3.2 million, says Du Randt.
Du Randt says Pennington has two roads with beachfront properties and these are well-maintained offering good sea views and are priced from R3 million up to R5 million.
Properties in Bazley are similar to those in Clansthal while towards Mtwalume, which is another coastal village, properties range from R1.2 million to R1.6 million in a secure complex with a 5 minute walk to the beach to freehold homes selling for R4.5 million, according to Du Randt.
According to Lightstone data, the downward trend in average price as one moves further away from the beach is apparent in all of them and the trend flattens out at around 600 metres for the South Coast towns and around 800 metres for Durban and Ballito. What is your experience?
Du Plooy explains that properties located away from the beach but in an estate are very popular and prices range from R4 million in Simbithi and Zimbali up to R20 million while houses away from the beach outside estates sell on average for R2 million and more.
“With the railway line running along the South Coast, we don’t have many properties with direct beach access, as a result, good beachfront properties with direct access to the beach are scarce and therefore sellers can pretty much dictate the market,” says Du Randt.
This four bedroom beachfront property on the Dolphin Coast is selling for R10 million through Harcourts Dolphin Coast. Click here to view.
Furthermore, data reveals that there is a price bubble in Durban between 800 and 1 400 metres from the beach possibly due to high value northern suburbs such as La Lucia and Glen Ashley - are you seeing the same thing?
In Ballito the actual distance from the beach does not matter as much as the extent of a sea view from the property, points out Du Plooy.
Who is buying beach properties, where and in what price range and what do they get for that amount?
“The buyers in our area mostly come from Gauteng, and in recent times people from the KwaZulu-Natal South Coast are also moving to the north.
“We still have an active market of retired people looking to settle in Ballito which now offers excellent medical facilities in the form of the Netcare Aberlito hospital,” says Du Plooy.
Young families in their mid 30s with young children are also settling down in Ballito where excellent private schools are on offer, notes Du Plooy.
According to Du Randt, beachfront properties are either bought by high income earners or a few buyers on a joint venture.
When is a good time to buy a beach property and why?
When it comes to buying a beachfront property, no specific time can be assigned to the purchase – it is always good to invest long term as the return will be good and rental income can cover expenses as well as bring in some passive income, according to Vos.
In KwaZulu-Natal, some towns on the coast show a downward trend in average price as one moves further away from the beach. Of interest, the trend flattens out at around 600 metres for the South Coast towns and at around 800 metres for Durban and Ballito.
“There is no good or bad time to buy in Ballito as we see people buying throughout the year,” says Du Plooy.
Du Randt on the other hand reckons March to April because the weather is fantastic; March is also off peak season which allows would-be buyers to stay longer and get the feel for an area.
Why should buyers be interested in KwaZulu-Natal beach properties?
According to Vos, Ballito and surrounds are growing very fast and with all the commercial expansion coming to the North Coast, this makes it an investment hub.
The King Shaka airport lifted expectations in the area and provided a positive spinoff which bodes well for the property market, he says.
What’s more, says Du Plooy, the area offers convenience as it is almost halfway between Durban and Richards Bay on the coastal belt, making it easy to commute in both directions.
Furthermore Ballito is no longer a sleepy coastal village to retire to or for holidays only, but is rapidly changing into a significant town offering a quality lifestyle with residential, golf and eco estates and housing currently still for the middle and higher income generators.
“Buyers get value for money property along the coast with direct access to the beach although this varies,” adds Du Randt. – Denise Mhlanga
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