| Pockets of the KwaZulu-Natal property market are still
achieving growth of between 15 and 20 percent, creating good opportunities
for investors, despite the recent hiccup in coastal sales due to the damage
done when the province experienced unusually high tides.
That's the word from Richard du Toit, owner of the Aida office in Ballito
on the KZN North Coast, who says the market in the province is still
playing catch-up to the rest of the country.
"The local market lags the national market by a good six to 12
months. And although we are currently experiencing a buyer's market,
the province will be on a solid footing to take advantage when the next
upturn comes around early next year.
"In fact, right now KZN property offers a golden opportunity:
Sellers are willing to negotiate on price - in some cases discounting
their property by up to 20 percent - while prices are expected to start
rising faster again from January next year," he says.
Du Toit, who also owns several other Aida offices in KZN, points to
Ballito as a star performer of the booming KZN market. "Prices
have risen by at least 300 percent in the past five years. New residential
units were brought to the market in answer to strong demand from Gauteng
and other upcountry buyers and commercial development has kept pace
with the residential market.
"Ballito has been transformed into a mini city and is set for
further development. Several multinationals have taken commercial space
in the town, while new residents are setting up shops, providing work
opportunities for locals, which, in turn, further stimulates the housing
market," he says.
"The greatest need currently is for units in the R500 000 to R1m
price band to accommodate local blue collar workers, many of whom commute
from elsewhere."
Limited stock of small inland flats is still available at around the
R800 000 mark, but Du Toit says the real entry level lies around the
R2,5m mark.
"Anything launched around the R2m mark is usually sold out before
units are even properly marketed." Full-title homes priced between
R2,5m and R4m sell quickly.
Du Toit says investors in properties for permanent rental can expect
a good return on capital. "Returns on holiday accommodation are
slightly higher, but that market is very vulnerable to the weather.
For instance, many bookings over the Easter holidays were cancelled
due to the foul weather."
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Newsletter:
25 May 2012 2012 to 1 June 2012 - Dullstroom, Mpumalanga, South Africa
