Carol Reynolds, Pam Golding Properties area principal for Durban coastal says that the area is poised for better growth in 2018, with the North Coast in particular, a buoyant growth node.
Reynolds said that with Cape Town dealing with a severe drought, KZN has taken centre stage as a more appealing and affordable alternative.
Pam Golding said that the property price inflation that Cape Town has experienced over the past four years has to a large extent been driven by Johannesburg semigration, rather than by international investors.
“Given that our local investors have the capacity to drive demand to such an extent, we anticipate a similar influx of families to the North Durban coastline in the coming years. Most notably, Johannesburg commuters are seeking the lifestyle offering in KZN,” Reynolds said.
“Our Pam Golding North Durban office experienced record sales in January 2018 – outperforming the company’s Atlantic Seaboard for the first time in history. This we feel is a small microcosm of things to come.”
“We foresee a more buoyant 2018, particularly in the North Coast corridor of KZN stretching from Durban North through to Ballito. However, there continues to be an air of caution that pervades the markets in general, and hence price inflation may be gradual, particularly at the upper end, as buyers and sellers both find themselves in a more rational negotiating space.
“We predict it to be a year of fair trading – fair results on both sides of the spectrum, with the lower end of the market experiencing more growth than the upper end,” Reynolds said.
Pam Golding highlighted the emergence of a stronger middle-class of buyers from a more representative demographic, along with a strong first time buyers pool to draw from. “We are hopeful that more entry-level stock will be offered into the market, as developers deliver products that meet the needs of the price band that sits below the R1 million bracket.
“We have been in discussions with several developers who are researching the viability of sectional title complexes with smaller, trendier units at lower ticket prices to cater for the young professional market. This will drive activity levels and be an enabler for those who have found traditional market prices unattainable,” Reynolds said.
Security estates will continue to be popular and the move to smaller lock-up-and-go lifestyle options will keep trending. “The densification of established residential suburbs may also gain traction, as developers seek to consolidate and redevelop in areas where there is a need for small boutique estates. We may also start to see modernisation of existing complexes, where there is a shortage of land for further development,” the property expert said.
“The KZN North Coast is benefiting from a bouquet of factors that have come together in perfect synchronicity, to herald it as the country’s number one growth node,” Reynolds said.