KZN North Coast in Demand
Neil de Beer, Pam Golding Properties
As new stock becomes available to purchase on KwaZulu-Natal’s rapidly expanding residential property market so it is rapidly snapped up by eager buyers wanting to acquire a home on this prime stretch of real estate, says Neil de Beer, Pam Golding Properties area manager in the Ballito area.
Talk us through the area’s performance?
The KZN North Coast residential property market has performed exceptionally well in the first half of this year (2015), confirming that although there was a period of reduced activity as financial markets rebalanced in recent years, this coastal region remains one of the country’s most sought after residential destinations. The recent go-ahead by the local KwaDukuza Municipality for development of the groundbreaking R1.4 billion, 65 000sqm mega mall, Ballito Junction, will serve to further underpin the high investment appeal of the region both in general economic terms as well as for home buyers.
What are the numbers?
Pam Golding Properties Ballito has experienced recording-breaking sales in the area, both in the number of homes sold as well as prices achieved for sellers, with sales turnover for the six month period from January to June 2015 of R169 million, considerably up on sales of R131 million for the corresponding period in 2014.
What’s the appeal of the area?
The attraction to the greater Ballito area stems from a strong demand for homes in the region’s high performing residential estates such as Simbithi Eco Estate, where demand far outstrips supply due to limited land available for new sales – activating a healthy resale market. With prices being achieved mainly between R3 million and R7 million – and even up to the R10-million mark, free standing homes in this estate are in highest demand while sectional title homes on the eco-estate are fetching prices between R2.5 million and R5 million.
In Simbithi, which will eventually comprise a total of approximately 1 850 units as well as six community centres with a range of sporting facilities and a world-class golf course with clubhouse, there are currently 461 completed freehold homes on the estate with another 101 under construction. Two off-plan developments named Fish Eagle and Jacana are in progress, with construction of the former underway and the other currently marketed. With no development land available on the estate as from April 2014, there are some re-sale stands available for purchase, priced from an entry level of R1.99 million.
The renowned Zimbali Estate continues to appeal to a unique and affluent buyer with an active and highly attractive variety of stock available. Zimbali, like Simbithi, offers a wide variety of estate-based facilities for homeowners that match and even exceed Johannesburg-based estate while including a coastal lifestyle. Of the total of 800 freehold sites only about 60 have not yet been developed or completed. Only a handful of these are available for purchase as resales, with the majority of vacant land being held by end-users with the intention to build.
What’s prompted the surge in sales?
The variety of these and other estate properties has definitely contributed to the upsurge in sales. Beachfront properties, with sweeping views of the Indian Ocean, active marine life and easy access to several Blue Flag beaches remain in demand as holiday homes for buyers from all across the country. Ballito, Salt Rock and Sheffield Beach remain in a state of constant demand as they offer good value for money and are easy accessible with King Shaka International Airport 15 minutes away.
About 60 percent of our buyers are from Gauteng, 30 percent from the Upper Highway area, the north of Durban and the KZN North Coast, five percent from other regions such as the Free State and Cape and the remaining five percent mainly South African expatriates returning home from countries such as Canada and the United States. Resident owners are up 50-60 percent over the past five years due to Ballito’s regional growth and close proximity and convenience to the airport – allowing Gauteng families to relocate to the coast for a more relaxed lifestyle while conducting business by commuting. Buyers emanating from the likes of central Durban and uMhlanga find the variety of quality estate appealing, while leisure owners are predominantly from the Gauteng region with small numbers of international owners seeking to escape the European winter.
Text and Photographs: Supplied