Pam Golding says that the semigration trend in South Africa continues to the coast, primarily the Garden Route and KZN – Durban and north to Ballito, and the Western Cape – including the Boland and Overberg.
Areas such as Ballito and Knysna, also St Francis Bay, Port Alfred and Jeffreys Bay, which were previously considered holiday hamlets, have become primary residential areas.
In addition to attracting semigrators, Knysna is currently seeing an influx of buyers from Europe, it said.
“In George, currently over half our home buyers are from regions outside the Garden Route – mainly from Gauteng and the Western Cape, followed by Mpumalanga and the Eastern Cape.
“Interestingly, outside of estates, George is seeing a considerable reduction of 20.8% in available stock when compared to the same time last year (August 2019/18),” said Dr Andrew Golding, chief executive of the Pam Golding Property.
“On the KZN North Coast, we’ve recently seen as much as 60% of our buyers for new off-plan developments originating from Johannesburg, while Sibaya near eMdloti is also in demand due to its close proximity to King Shaka International Airport.”
Value-for-money and hotspots
Golding said that country towns inland offer exceptional value especially for retirees, and from a coastal perspective, “we may see increased interest in KZN areas from Amanzimtoti through to Port Shepstone on the South Coast, where lifestyle, cost of living and house prices are affordable”.
“In the meantime, the KZN North Coast is seeing developments still selling well and correctly priced stock moving. An influx of Johannesburg commuters and semigrants moving to the coast has kept the developments market alive. In addition, KZN is still well-priced compared with the Western Cape and affordable to the local market,” Golding said.
The estate agency noted that Sibaya is this region’s most buoyant new precinct, having enjoyed exceptional sales over the past two years and achieving record prices on vacant land at Signature Estate, where luxury homes range from R20 million up to R50 million.
“However, at Saxony at Sibaya, a luxury development with sea views, apartments and penthouses are selling starting from R1.85 million.
“We are expecting our new development, Sibaya Sands, to be well received by the market as it caters to both an investor clientele as well as an end-user market, with prices starting from under R2 million. uMhlanga sectional title is also sought after and the beachfront node popular as there is limited supply in this prime area,” Golding said.
In uMhlanga, Somerset Park and Sunningdale are becoming more and more popular with small three-bedroom, family homes in these nodes priced under R3 million, while apartments trade for around R2 million. In Durban, the Florida Road area is a hotspot with a one-and-a-half bedroom flat with parking selling in three days for R980,000, close to asking price, the group said.
“Krugersdorp on the West Rand, with its new developments, are a good buy and should provide excellent returns in five years. Due to its good value-for-money offering, people are buying here and are willing to commute to Johannesburg and Pretoria,” said Golding.
“In the new Copperhill Lifestyle Estate development you can buy a three-bedroom, 2.5 bathroom sectional title home of 165sqm with single garage and carport and sizeable private garden for R1.7 million. Catering for the younger, middle-class buyer, sectional title developments are on the increase and range from R1.65 million to R2 million,” Golding said.
Pam Golding noted that three new developments are being launched in the future in the Homes Haven area.
In Gauteng East, ‘The Neighbourhood’ is likely to become ‘the’ estate in this region, the property group said.
“Providing a clear indication of investor confidence in the area, this new development is in the historic Linksfield suburb, with 315 stands priced from R2 million to R4.2 million. Phase One sold out in days, underlining the demand that exists for prestigious living within a secure environment, close to important amenities,” said Golding.
For homes in Gauteng East, large tracts of open land between Benoni, Boksburg, Kempton Park, Edenvale and Greenstone have been developed with clusters, townhouses and shopping centres.
“Here you can acquire a quality two-bedroom, two-bathroom sectional title unit for R850,000, ideal for first-time buyers, as well as a top-end two-bedroom, two-bathroom unit for just R2.6 million in upmarket Infinite development in Bedfordview,” said Golding.
The greater Fourways area – in suburbs such as North Riding – has also seen many new developments coming onto the market particularly in the under R1 million bracket, while continued commercial development in Rosebank and Sandton has seen the construction of some large sectional title developments.
People look to live in a radius of offices and good schools so The Parks, Westcliff, Saxonwold, Parkhurst, Morningside, Atholl, Illovo and Inanda continue to attract people for correctly-priced properties, Pam Golding said.
“This trend is further driven by offices such as Discovery and Sasol in Sandton which house some 8,000 workers who in some cases look for convenient living and lifestyles. Access to Pretoria and the burgeoning residential growth on the N14 which has been upgraded will enable access into Fourways, the new areas around Steyn City and the Centurion area of Thatchfield,” Golding said.
The entire Waterfall area situated in Midrand has seen increasing growth over the last year, attracting both investors as well as buyers seeking a long-term lifestyle. Large companies such as PricewaterhouseCoopers and Deloittes moving their head offices to the area and the presence of good schools are fuelling the demand for residential accommodation.
The Waterfall area also provides upmarket lifestyle apartment living including all amenities such as gyms, restaurants, movie centres, as well as an amazing pool and recreation facilities. In Waterfall Estate we recently sold a R4.9 million two-bedroom home in three days and a R5.5 million two-bedroom home in two weeks.
In Pretoria in Tshwane Municipality sales continue apace in the Trilogy Collection, a R1.16 billion residential development in the major mixed-use Menlyn Maine precinct. With a total of 531 apartments when completed, 374 units in Phase 1 have been sold with limited units available in Phase 2 comprising 157 apartments, Pam Golding said.
“Such is the demand that apartment prices have risen by as much as 20% since the development was launched in 2016, underlining the demand for a live, work, play lifestyle in this urban setting. In Phase 2, prices range from R1.6 million for studio apartments, R2.2 million for one-bedroom units and R4.8 million for two-bedrooms.
“Part of Phase 2 comprised the sold-out Platinum Collection, exclusive apartments on the 10th and 11th floors, plus a double- storey, 574sqm presidential suite on the 12th floor which sold for R20.5 million,” it said.
In the Western Cape, value is driving sales in Cape Town’s Southern Suburbs across all price bands and we expect this to continue, said Golding. Top end sales include a modern, double-storey Bishopscourt home which fetched R41.3 million.
“We also recently concluded the highest residential sales transaction in the Southern Peninsula for a five-bedroom house in the exclusive lifestyle and security estate, De Goede Hoop, for R29.5 million.
“In Bergvliet/Meadowridge we find older homes to be renovated are always popular, but at the right price, and in Rosebank, we recently sold a three-bedroom home in just five days at a fraction below the asking price of R3 million.”
On the Western Seaboard, the areas of Tygerhof and Sandrift, between Century City and Milnerton and with its proximity to major arterial routes, are definitely beginning to upgrade, the group said. Currently the entry level is around R1.8 million.
“Opportunities are still evident in the under R2.5 million market, in areas such as Sunningdale, Parklands and some of the older areas of Table View, as well as generally in the sectional title market.
“With its affordability at entry level, proximity to the city and beach, magnificent Table Mountain views, watersports and laidback lifestyle, the Western Seaboard is an appealing place to live,” said Golding.
In the Boland region, the Northern Suburbs has seen huge commercial development, including new road infrastructure, businesses and restaurants, and in particular Durbanville’s commercial hub with the opening of Durbanville Square, the property group pointed out.
“Curro is also planning its first university on the outskirts of Durbanville in 2021 and, from our experience in student towns like Stellenbosch, we anticipate a meaningful positive impact on prices in the area.
“This may not be the size of Stellenbosch, but it will create opportunities for investors, student accommodation and a demand from lecturers to live in nearby suburbs such as Graanendal, Vierlanden, Pinehurst, Uitzicht and Langeberg Ridge.
“And due to the growth around Tygervalley, with the business and financial sector moving offices to the area, we are seeing a demand for property for Airbnb and guesthouse accommodation in nearby areas such as Rosendal, Ridgeworth, Kenridge, Bella Rosa and Tygervalley Waterfront,” said Golding.
In the Helderberg area, buyers have over 25 developments to choose from and, with competition in the resale market, the area offers value for money compared to many other towns in the Western Cape.
Demonstrating sound return on investment, in Andringa Walk in Stellenbosch, a two-bedroom apartment registered in 2015 for R2.65 million and a two-bedroom unit in this development sold through Pam Golding Properties in October 2019 for R4.3 million.
The new road being constructed connecting Technopark and Polkadraai will make Longlands Country Estate and Bosman’s Club – a new development comprising 46 units starting at R1.4 million, a very savvy investment now before the road is built, said Golding.
Along the Whale Coast, buying opportunities include affordably priced vacant land starting at R275,000 for 600sqm in Bettys Bay, and seafront properties in this coastal hamlet from R1.95 million for a 1,520sqm seafront stand to R3.995 million for a four-bedroom front row home in Rooi Els.