Massive property boom in this area in South Africa, thanks to wealthy semigrants

 ·23 Oct 2022

The Umhlanga property market continues to perform well, says Brett Botsis, Seeff’s licensee for the area. Since the onset of the pandemic, there has been a significant uptick in sales in the R5 million to R10 million range.

It said that 2021 was a record year for the area, and according to Lightstone data, some R3.2 billion in transactions have been recorded for the last twelve months to the end of September at a median price of R4.4 million.

Botsis said there were approximately 23 sales over the last year above this price, mostly in estates such as The Executive Estate and Izinga Estate and freehold houses. Two properties also sold above R20 million in Izinga Estate.

Seeff agents Anni and Warren Eisele have already concluded R60 million in sales for this year. This includes high-value sales in the San Marina apartment complex at R12.5 million and R15 million for the full asking price.

Botsis says the pandemic has been a tremendous boost for the Umhlanga property market, with more local buying as well as buyers increasingly coming from upcountry provinces, especially Johannesburg.

Umhlanga is a wealthy enclave with more people semigrating here, including local and upcountry executives and wealthy buyers.

Umhlanga not only ranks with areas such as the Atlantic Seaboard and Plettenberg Bay as among the most popular areas for wealthy buyers, but property here has proven to be a solid investment.

Values have grown by around 6% annually over the last five years, which is well above the average capital growth rates, said Botsis. There is also a strong rental market which is an attractive benefit to rental investment buyers.

The rise in demand has seen price ceilings lift with buyers investing in more high-end apartments and homes, and the volume of sales above R5 million is significantly higher compared to 2019. The same applies to sales in the R10 million to R20 million price band, said Seeff.

Although buyers are traditionally in the 36 to 49-year age group, there has been an increase in younger buyers, who now comprise about 27% of recent property purchases.

According to Anni and Warren Eisele, sectional title property is a popular option and comprises about 70% of all market stock. The balance is freehold, 6% of which is located in estates.

Apartment prices range from around R1.6 million to just over R2 million in The Breakers Resort. The agents say the complex is an excellent holiday investment as there is high demand for rentals in the complex, which offers excellent amenities, including swimming pools, a tennis court, putt-putt, a restaurant and more.

Bigger apartments range from around R2.4 million to R3 million. Townhouses are another good option in the sectional title category, with prices in the R3 million to R3.6 million range in Kindlewood Estate, for example, said Seeff.

There is also a choice of luxury apartments that sell for around R4 million. Also in high demand are the penthouses, such as the penthouse in Pearls of Umhlanga for R39.5 million and the 817sqm duplex penthouse in Oyster Schelles for R35 million, both offering a superior lifestyle experience, and ocean vistas as the eye can see.

The gated estates and top-end sectional title properties close to the beach are also in high demand. Luxury homes tend to sell from R5 million to R9 million on average, with super luxury homes ranging to around R24 million.

Read: Massive new economic development zone in the Western Cape – with a R21 billion investor pipeline

Show comments
Subscribe to our daily newsletter