While much has been said about the semigration of buyers – notably Gauteng buyers – to the Western Cape, Pam Golding Properties says that large numbers of upcountry buyers are also flocking to KwaZulu-Natal.
The property group said that Joburg residents are buying up luxury and super -luxury properties at the top end of the market particularly in the North Coast region.
“Some 60 to 70% of our buyers in the upmarket Zimbali area are from Gauteng, semi-grating to the coast,” said Neil de Beer, Pam Golding Properties area manager for Ballito. “The remainder are mainly those relocating from the greater Durban area to the North Coast as well as some overseas buyers, who account for less than 10% of the total.”
These, he said, are often expatriates returning to South Africa or acquiring an investment closer to home while they are based abroad, or acquiring homes for holidays in the interim and potential relocation on retirement in the future.
According to Sascha Bausch, Pam Golding Properties area specialist in Zimbali, with its close proximity to King Shaka International Airport and proliferation of secure lifestyle estates, the North Coast areas from Umhlanga, Umdloti and Sibaya through to Ballito and Zimbali are increasingly in demand among out of town buyers.
“Particularly where the major breadwinner commutes to the workplace in Gauteng while the family resides within a secure estate and enjoys all the lifestyle benefits of living in this highly appealing part of KZN.”
Carol Reynolds and Gareth Bailey, Pam Golding Properties area principals for Durban Coastal concur with the trend towards semi-gration among upcountry home buyers. “In the estates we are seeing a number of Johannesburg buyers investing in our Umhlanga and Sibaya residential developments.”
“Two years ago we were pricing developments in Umhlanga at R20,000 per square metre, now some of our developments are selling for as much as R60,000 per square metre, reflecting unprecedented growth,” said Reynolds.
Sandra Gordon, senior research analyst for Pam Golding Properties, said: “It appears that soaring Cape house prices, combined with worsening congestion in the Mother City, is prompting many home buyers to consider other coastal destinations – particularly the North Coast of KwaZulu-Natal.”
According to the Pam Golding Residential Property Index, despite facing a range of economic and political headwinds, national house price inflation has eased only marginally – slowing from an average of 4.7% in 2016 to 4.35% during the year to date.
Encouragingly, the major coastal metro housing market in Durban continued to outperform the interior metro markets in early-2017, with growth of 6.7%.
Citing Lightstone research, Pam Golding said that the median price of properties has increased by 48% in Umhlanga and 32% in Ballito over the last five years.