The KZN Mid-South Coast property market is improving with buyer enquiries spiking notably after the elections, according to Jo Giraudeau, manager for Seeff Mid-South Coast. Positivity is also building further on the back of a potential interest rate cut in September.
Agents have noticed a lot of South African expats returning to the country, and enquiring about residential properties between Pennington and Clansthal. Additionally, where demand was mostly around the R700,000 price range on average, it has now shifted upwards to around R1.2m. Ms Giraudeau says further that as bonds have become harder to get, they are getting more cash offers and larger deposits to aid the bond applications.
The trend of purchasing at a lower rate and renovating has changed. People are now wanting move-in ready properties or houses with second dwellings for family or income generating options.
She says the Mid-South Coast still offers the best value for property buyers and investors with prices which are far more accessible compared to other areas. The lifestyle offering is also unmatched with a slower pace, warmer climate and long summers, and the warm, Indian Ocean. The area is renowned for its fabulous beaches including some of the country’s best surfing beaches, fishing, snorkelling, body boarding, and rivers and lagoons.
The Mid-South Coast is also very accessible for inland provinces, especially Gauteng visitors and retirees. It is just 45-minutes from Durban and just over an hour from King Shaka International Airport. Those who want to escape the Durban metro can settle here. It is a holiday and retirement hotspot. You will often find people investing in a holiday home with the view to later settling here for their retirement.
There is also a lot of development in the pipeline as the area has become a focal point for development and potential growth, she says further. The multi-billion-rand Renishaw Coastal Precinct development project in Scottburgh is one of the biggest in the country. The first phase, being a residential development (Renishaw Hills), has already seen its property values increase by 60% in just six years. The next phase includes a shopping centre and filling station, and plans for a private school and church.
Another boost for property investors and residents in the area is the formation of the GPU (Government of Provincial Unity) which has boosted expectations of a revival of the area. Recently, a media statement was issued indicating cooperation between COGTA and the Umdoni Municipal area (which covers the Scottburgh and Clansthal area) to stabilise service delivery in the areas. The R20b uMkhomazi Water Project is also progressing. There is also the long-term Umkhomazi Local Area Plan which sets out tremendous plans for upgrading of roads, various developments including more residential developments, and upgrading of beachfront areas and tourist facilities.
Community involvement is also evident here with regular community clean-up and restoration initiatives, and regular beach cleanups as part of the Conservancies KZN movement. There is also the Sapphire Coast Tourism project which promotes attractions and facilities in the area.
A gem of the area is Clansthal, a small residential area fronted by Clansthal Beach which lies between Scottburgh and Umkomaas. It lies within the Clansthal Conservancy, between the Mhlongwana and Mhlongwa rivers. A landmark here is the Green Point lighthouse which is a vital beacon to warn ships of the Aliwal Shoal (a reef about 5 kilometres off the coast of Umkomaas consisting of an ancient sand dune).
Ms Giraudeau says the area appeals mostly to older buyers and tenants, but lies in a popular tourist and holiday coastal belt. There are only about 149 properties of which 80% is freehold with a median value of R2.5m. According to TPN data, the average rental price is around R8,000 for sectional titles, and R10,000 to R16,000 for freehold property. Rental yields have been outstanding at just under 10% for sectional titles and around 6.5% for freehold.
Writer: Gina Meintjes
