KwaZulu-Natal is well-known for its beautiful coastline, dotted with a myriad of small towns whose residents relish the warm waters and subtropical weather. Divided into the North Coast and South Coast by Durban, in the middle, the climate grows hotter and more humid the further north you go, and while both directions attract their share of holiday-makers, the South Coast offers a slightly more temperate retreat at remarkably affordable prices.
Erine Kleyn, the Rawson Property Group’s franchisee in Amanzimtoti, describes the town as having a great mix of residents of all ages and income levels. “We have a sizeable permanent population who either work here or commute to Durban along the N2, and then we also have a lot of business people from all over the country buying holiday homes here,” she says.
Properties in Amanzimtoti vary from spacious houses to apartments, complexes, and everything in between. “The highest demand is seen in the R700 000 to R950 000 price range but our franchise can offer homes priced up to R4 million,” says Kleyn. “The market is remaining fairly stable at the moment, but prices are likely to start rising soon, so now is a good time to invest. We have a decent amount of stock, but it is moving – especially in areas closer to the shopping malls and beaches – and we’re seeing an increasing number of buyers paying cash for holiday homes these days.”
While Amanzimtoti is certainly a popular holiday destination, it’s not a primarily holiday-driven market. This changes as you head further south along the coastline, and towns like Uvongo, in the Hibiscus Coast region, have a much more dramatic slant towards holiday purchases.
“We’re seeing a lot of people in the higher income bracket looking to buy property here,” says Charl Cilliers, the Rawson Property Group’s franchisee for the Hibiscus Coast and Uvongo. “Only a few are buying property for personal use only – it’s more common that the purchases are intended as an income-generating asset through leisure letting and smart investment.”
It’s easy to see why leisure letting may be a profitable venture in the area. With secluded, unspoilt beaches, superb fishing, a waterfall-fed lagoon and the dramatic contrast between lush vegetation and rocky escarpments, Uvongo has all the natural attractions a visitor could dream of.
“We do have a fair number of permanent residents as well,” Cilliers points out, “particularly in the retirement age group. It’s a lovely place for the grandkids to come visit, with our tidal pools, splash pools, and beaches.”
Properties in Uvongo include everything from modestly sized houses to large, sprawling mansions along the beachfront, as well as plenty of apartments and complexes designed to cater to the growing seasonal demand. “The majority of prices are between R1 to R1.5 million,” says Ciiliers, “but there is also a decent amount of stock under the R1 million mark – a real steal for coastal property like this.”
Cilliers recommends that buyers who are looking for investment properties concentrate on apartments closer to the beach, rather than the quieter neighbourhoods further afield. “Holiday-makers want to be close to the action, so you’ll have a much higher occupancy rate if your property is centrally located here.”
For existing owners planning to sell, however, Cilliers advises patience – especially if you bought before the 2007 property market crash. “We are seeing people who bought at inflated prices back then sitting with huge bonds that they just can’t cover by selling at today’s rates,” he explains. “Prices are rising though, so if you hang on just a few more years you’ll be much more likely to recoup your investment.”
With most South Coast towns seeing only gradual price increases currently, there is still time to take advantage of the affordable property on offer. Speak to a Rawson Property Group franchisee in the area of your interest to find out more about local opportunities, and get in early to reap the best rewards.
For more information visit www.rawson.co.za
