Despite the recent credit downgrade for South Africa and a constrained economy, the demand for residential property in and around Durban remains strong, with well-priced properties selling within a week.
This three bedroom, two bathroom home for sale in Essenwood has a gourmet kitchen, verandah, pool, staff quarters, office and double garage. It is on the market for R3.75 million - click here to view.“Buyer interest in the R2.5 million-plus price band has come alive again. We recently sold a four bedroom house in Morningside for R4.2 million cash in just two weeks, and generally are seeing numerous cash sales being transacted, especially under R1 million,” says Michelle Burger, area principal for Pam Golding Properties Durban.
Burger says investors are active in the market, and seeking houses, flats and apartment blocks.
“As an example, we’re seeing interest from investors buying houses close to Durban University of Technology (DUT) and the University of KwaZulu-Natal (UKZN) under the R1 million mark, aiming to house students to cater for a huge demand for such accommodation. In a similar vein we’ve sold a 3.5 bedroom house with a granny flat for R900 000 in Umbilo, which is on the transport route for students and only about 4km from UKZN,” she says.
This spacious one bedroom, one-and-a-half bathroom flat in Musgrave has a garage and is selling for R695 000 - click here to view.“Areas which are performing well in terms of demand and trading activity include Morningside and the Durban beachfront. I believe in the long term we will see even more interest in people moving to the beachfront for the lifestyle on offer and convenience of location.
“We’ve also noticed enquiries from Johannesburg-based families wishing to relocate to Durban because of the lifestyle, with the main breadwinner commuting back a couple of times a month. This is a trend which has predominantly impacted on demand for the North Coast, and which is now spilling over to the Morningside area.”
Burger says notably, for the six-month period from March to August 2017 - compared to the same period in 2016 - Pam Golding Properties’ Durban sales turnover was up by about 60% to close to R72 million. “We’ve also increased our sales team to 18 with the addition of seven more agents.”
This three bedroom, two bathroom home in Glenwood has a pool, automated garage, staff quarters and large garden. It is on the market for R1.595 million - click here to view.“The Durban metro market comprises numerous suburbs, including, among others the Point Waterfront, Durban CBD, Berea, Musgrave, Essenwood, Morningside, Glenwood, Bulwer, Manor Gardens, Umbilo, Glenmore, Westridge and Overport,” she says.
“This market is so diverse in terms of price ranges that we are able to cater for all buyer lifestyle requirements. Many people are looking to buy close to where they work and where their children attend school, which are critical factors for home buyers.”
In addition, Burger says demand is high for renovated apartments in Glenwood, Morningside and Musgrave, with these apartments selling very quickly if priced right and, again, particularly under the R1 million mark.
This three bedroom, two bathroom home in Morningside has wooden floors and a jacuzzi. It is selling for R1.27 million - click here to view.“However, we are seeing that some sellers are holding on to their asking prices while buyers are tending to dig in their heels more. It is evident that as more properties come onto the market, correct pricing is imperative to avoid a home sitting on the market for too long, as generally these then end up selling for a lot less than anticipated,” she says.
Burger says encouragingly, there are some 100% bonds being granted successfully in the market, but an excellent credit score is necessary for this.
“If you are a first-time buyer in this market, ensure you do your homework on affordability, and preferably have a deposit ready. It’s advisable to take the time to get yourself prequalified if you are unsure of your credit record and how the banks may view you, as prequalified buyers stand a better chance of getting their offers accepted,” she says.
This one bedroom, one bathroom apartment in Berea has a garage and is on the market for R795 000 - click here to view.
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