Where to find well-priced entry-level homes in Durban North

With house prices on an upward climb, it is getting trickier and trickier for first-time buyers to enter the market for below R1.5 million.

This three bedroom, two bathroom apartment in a new development in Park Hill, Durban North, is on the market for R1.599 million - click here to view.

“From a national perspective, Lightstone Property’s figures reflect that 25.2% (up from 21.97% in Q1 2018) of all property transfers for the first quarter of 2019 fell within the R800 000 and R1.5 million price bracket. While the price brackets below this have reflected a shrinking market share year-on-year, this segment has seen consistent market share growth, which points to the fact that the entry-level price bracket is shifting into more expensive territory,” explains Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.

This three bedroom, one bathroom apartment in Greenwood Park, Durban, is on the market for R750 000 - click here to view.

According to Standard Bank’s House Price Index for March 2019, KwaZulu-Natal’s HPI grew to 4.3% year-on-year in March up from 4% year-on-year in February. Grant Gavin, Broker/Owner of RE/MAX Panache that operates in Durban North and La Lucia, explains that the average home price along Durban’s North Coast suburbs is now upwards of R3.2 million.

This two bedroom, one bathroom apartment in Gateway, Umhlanga, has an undercover parking bay and is in a complex with two pools. It is on the market for R1.7 million - click here to view.

“There are therefore very few buying opportunities under the R1.5 million mark. But, for buyers within that price range, suburbs like Park Hill, Red Hill, Greenwood Park, and Sunningdale present some good entry-level options. A few opportunities also exist in Umgeni Park, as well as Gateway,” says Gavin.

In terms of what buyers can expect within this price bracket, Gavin says in Umhlanga, R1.5 million will afford buyers a one or even two bedroom apartment in Gateway. “Buyers who are searching for an entry-level three bedroom freehold property, should look in the Red Hill and Park Hill areas. However, if buyers are searching in the more expensive suburbs, they will be able to afford a one-bedroom flat or apartment for R1.5 million, and not much else.”

This eight bedroom, four bathroom home in Park Hill, Durban North, has a pool and lapa area. It is on the market for R1.695 million - click here to view.

According to Gavin, as a trend, millennials seem to favour the option of renting in more attractive locations with larger accommodation as opposed to buying smaller properties or more affordable homes in less ideal areas. However, one can never discount the long-term financial benefits of buying and holding on to a property within the right area.

This two bedroom, two bathroom townhouse in Sunningdale, Umhlanga, has a private garden and splash pool. It is selling for R1.66 million - click here to view.

“My advice is always to buy as soon as you can afford to do so. I therefore recommend that first-time buyers stretch (without overextending) themselves to buy in the best area possible. It is always difficult for the first year or two when trying to make the budget work, but, if you are in a position in which your salary will increase over time, then you need to keep in mind that it will become easier as your salary grows.”

This modern apartment in Gateway, Umhlanga, has two bedrooms, two bathrooms, two parking bays and access to a communal pool and gym. It is selling for R1.875 million - click here to view.

To help make buying in desirable suburbs more achievable, Gavin explains how, if need be, buyers could borrow from relatives where possible so that they can afford a higher deposit and therefore lower the amount for which they will need to qualify on the home loan. Alternatively, by joining incomes and buying with friends and partners, buyers can increase the home loan amount for which they qualify.

This three bedroom, two bathroom apartment in Umgeni Park, Durban North, has an undercover entertainment area, newly-paved patio and garden, a single lock-up garage and two open parking bays. It is selling for R1.25 million - click here to view.

As a final piece of advice, Goslett recommends that all first-time buyers arrange a consultation with a local real estate professional to get a better understanding of local market conditions and the various options that are available to them.

This new development in Park Hill, Durban North, offers three bedroom, two bathroom apartments from R1.25 million - click here to view.

“For many first-time buyers, the idea of buying a property is an intimidating prospect for which they feel hopelessly underqualified. Speaking to a local real estate advisor can help buyers realise that owning property is a much more realistic goal than they might first have assumed,” says Goslett.