South Africans have been burdened by a series of repo-rate increases sanctioned by the Reserve Bank this year and by all accounts these adjustments won’t be ending anytime soon. Many residential agencies have reported a downward cycle in both residential enquiries as well as bond referrals to major lenders.
South Africans have been burdened by a series of repo-rate increases sanctioned by the Reserve Bank this year and by all accounts these adjustments won’t be ending anytime soon. Many residential agencies have reported a downward cycle in both residential enquiries as well as bond referrals to major lenders. It is no secret that that the compulsory national credit regulations implemented to counter credit-overexposure has thwarted many a home owner’s plans. The series of repo-rate increases will do little to aid the average home owner both in regards to acquisitions and sales.
This does however not reflect the market conditions in all residential markets as there are several outperforming and demand areas. One such demand area is the greater Umhlanga Rocks and Durban North zone. It may surprise many that this residential market is also one of the most expensive to set up a home but it certainly is also an area where values are retained as a result of demand. So why do buyers favour this particular node?
The Durban metropolitan residential shift was largely due to the introduction of gated secure estates in the upper highway Hillcrest area as well as in areas such as Mt Edgecombe and Umhlanga Ridge. There was a noticeable migration from previously prime residential nodes such as Musgrave, Morningside, Cowies Hill and Westville. Most buyers were seeking comfort of family security in gated estates as a result of increased criminal activities as well as aesthetic appeal of modernised spec-built homes. The strong focus by city planners and developers on the Northern regions gave rise to the establishment of new industrial, commercial and retail zones such as Riverhorse, the Gateway precinct, King Shaka Airport and the Ridgeside Office Park. Prestigious trade positioning lured many businesses out of historical hotspots such as the Umbilo basin and the CBD. The establishment of national corporates in the Umhlanga area in turn gave way for a strong migration of home seekers who desired close proximity to work and local schools. Not to mention the calm appeal of the Indian Ocean. This movement had a direct impact on home sales and indeed home values in the greater Northern Region which saw modest homes tripling or even quadrupling in value. This radical demand shifts also highlighted the social charisma of this area which saw an upswing in holiday home investments from buyers across the country and in fact from around the world. The recent release and strong uptake of high value off-plan residential properties, such as The Pearls and Oceans has again highlighted the resilient demand for property in this area.
“If market sentiment is anything to go by then one must certainly feel secure about the purchase of a home in Umhlanga and surrounds” is a view echoed by Carl Kleinhans of In2assets. “Yes it may be marginally more expensive than for example the Highway Areas but it does appear that for the time being there would be positive value retention here”.
Amongst various other prominent properties, In2assets have been favoured by two clients to introduce outstanding residential homes to the market which is worth mentioning now. The first is a newly built five-bedroom executive home on the Umhlanga Ridge. The developer has spared no costs in completing this amazing high spec home which is located within a tremendously secure and very exclusive millionaire’s estate. This property is available to the market on a For Sale private treaty platform.
The second property will be showcased at the company’s upcoming 18 May 2016 property auction. This exclusive beachside home boasts four ensuite bedrooms and 540m2 of grandiose living space. This home is located at 96 Fairway adjacent to the Beachwood Golf Course. Limited pre-auction viewing dates have been scheduled.
For further information on either of these properties please contact In2assets on 031 5747600 or email Carl Kleinhans at [email protected]