GARETH BAILEY DISCUSSES CURRENT TRENDS IN PROPERTY BUYING, AND THE OUTLOOK FOR 2020
With 2020 well underway, here are six trends to look out for in the year ahead.
Sectional title: There is an ongoing demand for sectional title homes, more compact homes with lower maintenance and lower operating costs, and homes in convenient locations close to schools, the workplace and all amenities – thereby avoiding heavy traffic congestion. This is particularly evident in key hubs like our North Coast suburbs of uMhlanga and Sibaya. Besides appealing to the younger generation, sectional title buyers include professionals who travel frequently, down- scalers and retirees who travel overseas to visit family.
Semigration: The semigration trend will continue to the coast, primarily KZN – Durban North and north to Ballito – the Garden Route and Western Cape, including the Boland and Overberg. On the our North Coast, we’ve recently seen as much as 60% of our buyers for new off-plan developments originating from Johannesburg, while Sibaya is also in demand due to its close proximity to King Shaka International Airport.
Value-for-money and hotspots: Country towns inland offer exceptional value – especially for retirees – and from a coastal perspective, the KZN North Coast is seeing developments still selling well and correctly priced stock moving. An influx of Johannesburg commuters and semigrants moving to the coast has kept the developments market alive. In addition, KZN is still well-priced compared with the Western Cape and affordable to the local market.
Sibaya has enjoyed exceptional sales over the past two years and is achieving record prices on vacant land at Signature Estate, where luxury homes will range from R20-million up to R50-million once built. Saxony, a luxury development with sea views, offers drive-up access to apartments and penthouses.
We are expecting our new development, Sibaya Sands, to be well received by the market as it caters to both investors as well as an end-user market, with prices starting from under R2-million. uMhlanga sectional title is also sought after and the beachfront node popular as there is limited supply in this prime area. Durban North continues to hold its own as a primary residential market that is well-priced and offers a family lifestyle with an abundance of schools. Somerset Park and Sunningdale are increasing in popularity as you can buy small three-bedroom, family homes for under R3-million.
Estate living: This remains sought after, especially eco- estates and those which provide a range of amenities, even schools and leisure activities. There is also a strong focus in estates on creating a greater mix of price bands and retirement developments, ensuring broader appeal both in terms of available homes and amenities, such as shops, educational and medical amenities.
Sustainable homes: The sudden recurrence of load- shedding, coupled with rapidly escalating costs of electricity and water shortages, has seen homeowners and tenants increasingly turning towards homes with “green” features.
Increasing demand for offshore property: According to our International Division, Pam Golding International, increased demand for international property is being fuelled by a desire to diversify investment portfolios with a rand hedge. The need to diversify, coupled with demand for offshore citizenship, has seen increased uptake by buyers investing in residential property in Portugal, the US and Grenada in the Caribbean which offer citizenship opportunities. Property in Mauritius and the UK remain firm favourites with SA investors.