From one of the fastest-selling developments in the past few years to a semigration of note to KwaZulu-Natal's North Coast, experts unpack the uptick in property sales across the province.
READ: Gauteng Property Hot Spots | 'Strong rebound' in top Joburg and Pretoria East suburbs
The SA residential property market, like all property markets, is not a homogenous single entity but rather made up of tens of thousands of different suburbs and areas, each with their own set of nuanced factors which determine their desirability and affordability.
With this in mind, Dr Andrew Golding, chief executive of the Pam Golding Property group says there have however been some trends and influences which have become apparent post lockdown,” which were either not as prevalent pre lockdown or not present at all”.
“In demand are appealing suburbs and peripheral areas in metros, as well as secondary cities and towns traditionally viewed as holiday or retirement destinations, as buyers are attracted by the more spacious homes and more balanced and relaxed lifestyle in these markets.
“Within the sectional title market, there is a shift towards larger units, as buyers seek more space for dedicated work areas and where possible, outdoor space.
Golding says the semigration of South Africans to coastal towns has been a marked trend for 2020, with KwaZulu-Natal benefiting due to affordability and the lifestyle offering.
READ: KZN's North Coast evolving from holiday to lifestyle hotspot
"On the KZN North Coast, The Onyx in the Gateway area has arguably been one of the fastest selling developments in the past few years with more than 50% selling after launching during lockdown, with one and two-bedroom units starting at just under R1.2 million," adds Golding.
According to Vernon Vogt, Principal of Jawitz Properties North Coast, the current economic situation combined with the fact that operating businesses virtually has become the norm are contributing factors to more and more families moving to KwaZulu-Natal’s North Coast.
“The KZN North Coast has seen as much as 60% of buyers for new off-plan developments originating from Johannesburg and we have seen a spike in enquiries from Gauteng residents wanting to relocate to the North Coast, specifically to the greater Ballito area, now that they work remotely.
“There has also been a shift in interest from buyers looking for holiday homes. Earlier this year, the holiday home and investment markets were quite depressed but we are seeing a resurgence,” says Vogt.
"If we consider the 6 months preceding lockdown (1 October 2019 to 31 March 2020) and the 6 months from 1 June 2020 to 30 November 2020), Amanzimtoti specifically has had a 29% increase in the number of offers, with median days to sell reducing to 38, from 51 days before lockdown," says Marcél du Toit, CEO of Leadhome.
| Suburbs and Towns | Average property price 2020 | Year-on-Year % Average Price change | 5-Year % average Price change |
| Amanzimtoti | R872 500 | -6% | 10% |
| Ballito | R2.3 million | 14% | 17% |
| Berea | R1.05 million | 2% | 76% |
| Blythedale | R2.2 million | -26% | 45% |
| La Mercy | R1.3 million | 19% | 21% |
| Mount Edgecombe | R3.035 million | -19% | 9% |
| Mtunzini | R1.2 million | 7% | 23% |
| Richards Bay | R1.05 million | 5% | 25% |
| Salt Rock | R2.5 million | 4% | 18% |
| Simbithi | R4.4 million | 33% | 41% |
| Umhlanga | R2.4 million | -14% | 2% |
| Umdloti | R2.6 million | -15% | 19% |
| Zimbali | R6.2 million | -7% | -2% |
| Zinkwazi Beach | R2.1 million | 9% | 28% |
(Source: Property24 Trends Data)
'Large volume sales in Umhlanga, buyers spoiled for choice'
Seeff Licenseee Anni Eisele says Umhlanga has seen a huge uptick in buyer activity, "up by about 40% across price bands, from R1.5m all the way to as much as R40 million".
"Large volume of sales between R2m and R5m which is the average price range in the larger Umhlanga area and two recent high-value sales, being a beachfront townhouse and a free-standing home, both sold for R20m, respectively".
Eisele adds that the daily influx of new properties coming onto the market, means buyers are spoilt for choice.
"Sectional title properties close to the beachfront are also sought-after as second homes or as investment buys, huge activity in that sector of the market right now."
Eisele says she expects the market to get even busier into January 2021 when Umhlanga is abuzz with holidaymakers from all over SA.
"There is an abundance of stock and sellers must be mindful of the competition in the market, hence they must choose a credible local agent who will ensure they price right to catch the current wave of buyer activity."
'Zimbali now Joburg by the sea'
Andreas Wassenaar, licensee for Seeff Zimbali, says Zimbali has become a bit of “Joburg by the sea” given that many upcountry buyers are investing in second homes here. It also attracts foreign interest. If current demand holds, we could end the year on similar sales volumes to 2019.
"The estate is regarded as the top coastal estate in the country and offers a stunning tropical resort lifestyle.
"Seeff expects the flight to quality to continue as people realize the benefits of owning a property within in a high quality and secure estate. With most people having spent large amounts of time at home during the Covid Pandemic and work from home/commuting to Joburg trend, more people are looking to invest in their existing homes and possibly upgrading where possible to more suitable homes.
"High-value sales achieved in Zimbali this year include R20m and R24.5m, both for beachfront homes," says Wassenaar.
READ: What you can expect to pay for property across KZN's North Coast
'Marked ex-pat investment noted in North Coast'
Mark Johnson, area specialist for the North Coast also confirmed Seeff achieved some its best months in the history of the branch, as "June sales were up by 246%, July up by 50% and the excellent sales continue."
Johnson says there have been "several high-value sales such as R12m for freestanding beachfront property in Salt Rock, sold to an SA Expat who was prepared to invest back into SA".
Further high-value sales were achieved in Simbithi Eco Estate, for R11.25m and R8.5m, both to semigration buyers, adds Johnson.
"We are receiving quite a few overseas enquiries of people coming to set up businesses in Ballito/Umhlanga, who are also looking to invest in residential property. There is also renewed interest and high demand for properties in the residential areas out of estates and we are having to source free-standing homes that will provide space, gardens and give value or a ROI for refurbishment investments."
'Richard's Bay bustling with great deals'
Elaine Chetty, licensee for Seeff Richards Bay, says this bustling town on the KZN North Coast is a "haven for low to mid-income buyers with plenty of first-time buyers.
"Prices have remained flat and you can still get a great deal in the R1.2m – R1.6m range. Buyers are taking full advantage of the low interest rate and favourable bank lending conditions and the market is buoyant, so much so that Seeff Richards Bay was recently named Seeff’s Licensee of the Year."
'Sellers warned to guard against overpricing'
Roger Hoaten, licensee for Seeff Berea says, "Seeff KZN has continued to achieve record sales post lockdown."
"Market demand is sustained and clearly the favourable bond rates continue to impact the market very positively. We expect to see this demand continuing into the New Year. Properties that are well priced are not sitting on the market longer than 6 to 8 weeks," he adds.
Hoaten says the agency has noted that many properties "are overpriced and that these are tending to sit on the market for exceptionally long periods of time".
"These ultimately achieve lower than market value as they are considered 'stale' by buyers."
*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period. These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.
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