“In the past year alone, Tyson Properties increased sales in KwaZulu-Natal by a massive 24%, showing the area’s demand,” said Bailey. “Investors are constantly on the lookout for properties that have potential for growth and the North Coast offers this in abundance.”
The average price of freehold properties in Umhlanga increased by 27.1% in the last year to a value of R5.85m, making it one of the biggest property growth areas nationwide. Apartments within Umhlanga have also seen a massive value increase.
Commenting on the make-up of buyers in the area, Bailey said there was a mixture of out-of-town businessmen and families investing in Umhlanga, and the North Coast in general, because of the location’s proximity to King Shaka International Airport, as well as numerous private schools and shopping centres.
“A percentage of buyers commute to Johannesburg during the week, as this is often required, but there is also the portion of buyers who started off in smaller, ‘first-time’ homes in other areas, that have now moved to larger, more child-friendly homes,” she said. “A large percentage of sectional title properties are owned by people that live out of the area and use the property as a holiday home.”
Bailey said that investors were prioritising security when looking for property which was prompting the further development of gated estates, particularly on the North Coast.
“Generally, we have all become very security conscious and will often compromise on views and proximity to schools for security. There is also added benefit of having sports facilities, community centres and clubhouses close by,” she explained. “We also find these buyers are particularly interested in estates featuring spacious, eco-friendly homes.”
This is once again reflected in property prices with the average price of sectional title units within Kindlewood Estate in Mount Edgecombe increasing by 26.4% in the last 12 months. At the same time, families are also moving into freehold properties within Izinga Ridge where the average price of a home in 2015 was R7.5m.
Bailey said the pull to the Izinga area, where there were fewer ‘complex-type’ homes available, was partly the security offered as well as the location.
“There are gated and non-gated areas that are both very popular because of the aesthetically attractive homes, proximity to Umhlanga, as well as the many sought-after schools in the area. The move of many businesses to the Umhlanga Ridge has also spiked interest in this area.”
She said the fact that non-gated areas are monitored by security cameras was also a big drawcard.
The Morningside and Upper Highway areas too have seen a constant upward trend in property prices with the average house price growth in Upper Highway standing at 6.8% per annum for the past decade, while Morningside has seen a 20% increase in the average price of sectional title properties in the last three years.
Bailey said Upper Highway’s consistent value for money, excellent schooling options and strong retiree market were attractive elements while Morningside’s limited stock availability in the sectional title property market has driven prices upwards.
“These well-established areas still have a lot of appeal and, as growth continues northwards, property becomes more affordable in the older towns and suburbs inland,” she explained. “Durban’s Morningside has seen a revitalisation in formerly declining parts and this has brought about a resurgence of demand for property in the conveniently-located suburb.”
