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Coastal property in KwaZulu-Natal is cooking

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At this time of year we all like to be beside the seaside – and for folks that do not live so close to the sea it can also be a prime time of year to buy their own seaside spot for holidays or even for a change of lifestyle. The beaches of KwaZulu-Natal are a drawcard for visitors from all over the country and beyond – and the variety of options on offer mean there is something for everyone. Andreas Wassenaar, Principal of Seeff Dolphin Coast, himself lives in Zimbali Coastal Resort (recently voted best estate in the country), and says that “the greater Ballito area is sizzling”, with hotspots including not only Zimbali but Simbithi Eco-Estate, Dunkirk Estate, Brettenwood Coastal Estate and Palm Lakes Estate. He says: “For the KZN North Coast the market includes Gauteng and Pretoria buyers looking for a holiday property and/or those looking to migrate down to the coast with their families. In addition, there is a migration northwards from Durban North and Umhlanga Rocks to the Ballito/Dolphin Coast area.” To get some idea of how prices in the top North Coast hotspot, Zimbali, have escalated, here are some actual examples which Wassenaar says provide a typical profile of properties traded in Zimbali: High-end home: Erf 406 Milkwood Drive, Zimbali Coastal Resort: Sold in 2005 at R16.5m, and in 2015 at R34m. Returned capital growth of R17.5m over 10 years – 106% growth. Rental stream on average R900,000 p.a. or an additional R9m over the period. Vacant land: Ptn 72 of Erf 6 Tinderwood Close, Zimbali Coastal Resort: Sold in 2008 at R3.8m, then again in 2013 at R4.8m, giving capital growth of R1m (26.32%) over 5 years. Sold again in 2014 at R6.5m: total capital growth of R2.7m (71.1%) over 6 years. He says: “As these examples demonstrate, a large return can be achieved in a short space of time, depending on timing. Certain categories of property, such as vacant land in prime estate areas, have become increasingly scarce and have started to escalate in pricing in the face of strong demand. “The King Shaka International Airport that opened in May 2010 just prior to the FIFA Soccer World Cup has become, as predicted, a main catalyst for growth and further development along the North Coast of KZN. Greater Umhlanga Rocks and Ballito are experiencing continuous new development. The new R1.4bn regional shopping centre in Ballito currently under development is an example of large-scale projects becoming feasible because of the development experienced, and in turn will become a catalyst for additional development within the area.” Further down the KZN coastline, in the popular holiday spot of Amanzimtoti, Pam Smit of Seeff Amanzimtoti says that you can still get a one-bedroom sea-viewing apartment on the beach in the Amanzimtoti area from R450 000. She says: “I have had a lot of investment buyers looking for sectional title beachfront flats between the range of R450 000 and R800 000. In my opinion properties priced above R1m are normally for personal use as a primary residence. I have had numerous buyers in the lower investment price range, and they are looking for cheaper accommodation that doesn't need too much work. Their aim is to rent them out and eventually to retire there.” This area along the KZN South Coast/Amanzimtoti has also seen development. Says Smit: “Our local Galleria Mall, which was only built in the last 5 years, has definitely boosted the area. The proposed harbour development – if it goes ahead – will also have a major positive effect. The water park which is definitely on the cards for the lower south coast will also have a positive impact, with more holidaymakers travelling to the south coast.” Contact Andreas Wassenaar, Principal – Seeff Dolphin Coast, on 082 837 9094, email andreasw@seeff.com; and Pam Smit of Seeff Amanzimtoti on 083 232 1301, email pam.smit@seeff.com

Author: Seeff

Submitted 18 Jan 16 / Views 188