Surf's up, KZN South Coast property outlook post-Lockdown

Surf's up, KZN South Coast property outlook post-Lockdown

Category News

There is no doubt that the market for sales and rentals will offer challenges when we come out of the Covid-19 Lockdown. Aside from possible restrictions in terms of viewings and personal contact, the market, property stakeholders, from sellers to landlords and buyers to tenants will need to make some adjustments, says Jo Giraudeau, Rental and Operations Manager for Seeff KZN South Coast.

Scottburgh-Umkomaas
In the Scottburgh-Umkomaas area, our agents anticipate a surge in demand for rentals post-Lockdown, but also renewed demand from buyers buoyed by the low interest rate and reduced transfer duty. We may well see an influx of people looking to relocate from the big cities looking for a better quality of life.

Sellers will need to lower their prices or could consider the rental market to help facilitate bond payments. Prices are likely to drop by 20%, creating an ideal buyer’s market with areas such as Pennington being especially attractive for its affordability.

Tenants will be looking for cheaper accommodation and rental rates may need to be lowered or landlords could risk vacancies. Landlords will need to keep up with maintenance despite the challenging economic conditions. We may also see a decrease in rental stock from landlords who need to sell their properties.

Amanzimtoti
In the Amanzimtoti area, we expect sales activity to pick up, especially for properties under R1 million. Holiday flats are likely to see a decline in short-term rentals which will no doubt put pressure on owners.

Sellers should get their house in the best possible condition and paint it before putting it on the market to avoid low offers. Do not hide any faults and be sure to point these out to your agent who will advise you on the need for repairs before it goes onto the market.

Buyers will need to maintain a good credit score. If you are planning on buying a house, be sure to keep up with your payments. Chat to the agent about any government subsidy benefits that you could qualify for. Be forthcoming about what you can afford from the outset.

Some tenants might have suffered downscaling from their employers and landlords will need to accommodate that where possible, perhaps with a reduced rental for a period. Landlords with high-end properties are likely to see their rental rates come under pressure. Tenants should be upfront about financial difficulties and work out a payment plan with the landlord. If they find that they cannot afford the rental going forward, they should rather speak to the agent about cheaper accommodation.

Hibiscus Coast
The Hibiscus Coast is expecting an increase in listings which will be good news for buyers. The area has two seller’s markets. The first is older people looking to sell to go into a retirement village or back overseas, but there is usually no urgency and they will wait for the right price. The second, is the holiday homes market where sellers will be selling for financial reasons and may look at cutting their prices, but demand for holiday homes will likely be low.

Buyers should guard against bargain offers. If you are serious, then chat to the agent to get a sense of what price the seller will accept.

Many landlords are considering long-term rentals for their holiday units given the uncertainty for the rest of the year and possibly into early next year. This is a good strategy to at least still earn good rental returns. Rental affordability may be a problem area for the market and given the limited employment opportunities, tenants expect a migration of people to the cities to look for employment. This may leave the market with excess stock for the first time ever on the coast.

The KwaZulu Natal South Coast is a holiday and surfing hotspot stretching from Amanzimtoti all the way down to Port Edward. This beautiful part of the coast brims with opportunity. Visit www.seeff.com for access to our full portfolio of properties for sale and to let on the KZN South Coast.

Author: Gina Meintjes