KZN NORTH COAST PROPERTY SALES UP 20%
The KZN North Coast has transformed dramatically in the past 10 years. Many contributing factors have influenced the demand for this region, including the close proximity to King Shaka International Airport and coastal estates that are safe, affordable and provide residents with quality of life that’s difficult to achieve while living in densely populated inland urban areas.
Property marketing agency, Rainmaker Marketing has been closely monitoring the landscape and opportunities that exist within the North Coast, particularly focusing on Greater Ballito and Salt Rock. Research studies were conducted that compared the 6 months prior to the hard lockdown in March 2020 with the 6 months from 1st September 2020 when the property industry and deeds office had resumed operations. The analysis was to assess the trends and patterns observed with investors and end-users from a residential perspective.
Findings were drawn from a combination of sources, including surveys, strategic questionnaires as well as statistics and findings related to transfer statistics.
6 months prior to the national level 5 lockdown on the total property transfers within this area amounted to R2,095 Billion. For the same period from the 1st September onwards a 20% increase was observed and sales amounted to R2,524 Billion. Another significant finding is that although the value of transfers went up by 20%, the freehold home transfers increased by 55% and the average price of freehold homes increased by 5%.
Stefan Botha, Director of Rainmaker Marketing adds, “The significant growth of the property market within the North Coast absolutely flourished during a period when the economy, as a whole, was under pressure. Contributing factors to this growth include the decreased interest rate – a 25-year low. People are now prioritising lifestyle changes and semigration is happening in South Africa; individuals and families are moving from Johannesburg and Pretoria to coastal regions like KZN. Climate, positioning to the airport and working remotely have been affecting property choices since the beginning of lockdown and have now been accelerated post the hard lockdown.”
Another contributing factor is that the KZN North Coast offers an excellent selection of established estates such as Simbithi and Dunkirk but also highly sought-after newer estates such as Seaton, Zululami and Elaleni. This is complimented further by Salta Sibaya which is positioned closer to Umhlanga, and thus outside of the reported areas, but that has achieved a new launch sales record for the province during the recent period.