KwaZulu-Natal and other coastal regions in South Africa are becoming 'hot markets' for property investors.
This is according to Gumtree South Africa's Property Price Checker. "KwaZulu-Natal's coastal property market is booming thanks to the Dube Trade Port and the King Shaka International Airport, as well as the large shopping malls and influx of tourists," says Kevin Bainbridge, head of Gumtree Property. "Pricing also compares favourably to that of other coastal hot spots, such as Cape Town."
Property Price Checker collates how much interest an area receives from buyers and investors. The five cities/suburbs receiving the most attention are:
1. Umhlanga, KwaZulu-Natal
Average purchase price: R2.2m. Average rental price: R18,917.
The seemingly endless summer weather, the laid-back village atmosphere and the thriving Umhlanga Ridge business node, shopping precinct, New Town Centre and proximity to the airport has seem a sharp spike in interest from buyers and renters alike. Umhlanga is a little steep for first time buyers, but developers who focus on more affordable complexes and sectional title developments are selling out fast.
2. Centurion, Gauteng
Average purchase price: R1.1m. Average rental price: R7,000.
Estate agents across the board have said that while the residential property market in Centurion still favours entry-level homes, there has been a spike in the demand for pricier houses in areas such as Wierdapark and Lyttleton of late. "It's a great spot for young, first-time buyers who opt for the convenience and variety of homes on offer," says Bainbridge.
3. Pietermaritzburg, KwaZulu-Natal
Average purchase price: R693,894. Average rental price: R3,950.
Pietermartizburg is a favourite spot for retirees and professionals hoping to leave the bustle of the city behind, while students enjoy the proximity to their places of study. Gated complexes and smaller homes are in real demand, and owners can expect a steady income from rent if they chose to rent out their homes.
4. Queensburgh, KwaZulu-Natal
Average purchase price: R900,483. Average rental price: R5,467.
The younger generation are upgrading from their homes in Chatsworth and surrounding areas to snap up homes in Queensburgh. Fair pricing and close proximity to the M7 and M13 arterial routes are drawing in higher income buyers. Numerous new developments are drawing new residents in large numbers, which makes Queensburgh a very attractive market right now.
5. Hout Bay, Western Cape
Average purchase price: R2.6m. Average rental price: R17,000.
Houses in Hout Bay, Cape Town, regularly sells well over the R5m mark. "In addition to being a rather beautiful part of the Western Cape, the area boasts numerous restaurants, excellent schools (local and international) and great beaches," says Bainbridge.