Few other residential areas in South Africa have seen as much new quality residential and commercial development in the last two decades as Umhlanga – and very few can match the architectural merit of the new buildings which have been erected there, says Gregory Senftleben, the Rawson Properties Umhlanga franchisee whose territory stretches from Umdloti in the north to La Lucia in the south.
There are, says Senftleben, over 15,000 residential units within the territory he serves (roughly 60% of these are sectional title and 40% freehold) and properties throughout this district, he says, have always been sought after.
“No other greater Durban suburbs have quite the same appeal and quite the same ability to ride out difficult economic periods,” says Senftleben. “The entire precinct is recognized as being upmarket and, although we did undoubtedly feel the effects of the downturn, homes here have lost none of their status or prestige for both Durbanites and upcountry buyers. What is more, new developments are still regularly coming out of the ground and finding buyers.”
The precinct’s pre-eminent status, says Senftleben, does not mean that it is impossibly expensive: in the Gateway area, for example, it is still possible to find a single bedroom apartment priced at R800,000 – or even slightly less – and at Sunningdale, Glen Anil and Glen Hills freestanding homes regularly come onto the market priced between R1 million and R1,5 million.
As one moves towards the shoreline, says Senftleben, prices do rise: at Umdloti, La Lucia and Umhlanga, sectional title units have price tags of
R2 million plus and no freehold home is available here at under R3 million. At the other end of the price scale, this franchise has many homes listed in the R5 million to R10 million bracket and they also has several homes priced above R10 million.
“It has to be accepted, however,” says Senftleben, “that in the higher price properties on all agents’ stock lists, there is likely to be much stale stock. Often it is overpriced and therefore very unlikely to sell fast.”
Overpricing, he adds, despite regular warnings in the property media, is still all too often caused by rival agents giving unrealistic valuations in order to secure mandates for properties – and over-bonded sellers (mainly those who bought in the 2007 to early 2008 era) are often only too ready to accept these valuations because they find it difficult to accept today’s market realities. Every agent giving a valuation, he adds, should be able to justify it in relation to other similar homes sold recently in the area.
Currently, says Senftleben, all estate agents in the Umhlanga precinct are experiencing stock shortages – especially of correctly priced homes. His franchise, which after three years in operation now employs 10 agents, is very well established and needs more “well priced” stock to satisfy demand.
“Although we have large stock lists, as I have indicated, many still feature a large number of over-priced properties and it may take another year for certain sellers to accept today’s prices.”
“However, prices are now stabilizing and very unlikely to fall back.”
For owners of rental properties, says Senftleben, the situation is ‘very healthy’. Demand, he says, is strong and rents are still rising at 8 to 10% per annum. His franchise has some 300 units in its portfolio and the majority of these rent out at anything from R5,000 to R12,000 per month. Very seldom does a unit remain untenanted for more than a month and his team, he says, has in some months signed seven to eight new tenants. Above R12,000 per month, he adds, demand is not as strong, but Rawson Properties still regularly find themselves handling units priced up to R20,000 per month and there are still takers for these.
“Since the implementation of the National Credit Act,” says Senftleben, “many people – even some with high incomes – who want to buy are simply unable to do so. This means that they have to rent – and are often prepared to pay up to 35% of their incomes in order to secure prestigious-looking homes or apartments.In many cases people who qualify for a bond cannot raise the cash required to pay for a deposit and transfer fees.”
Asked to outline the future as he sees it for the Umhlanga area, Senftleben says that from here on a slow recovery seems almost certain to take place and, he believes, it will be ongoing.
“If one excludes the later phases of the boom era of 2007 and the early 2008 period, any buy in Umhlanga has proved to be a very good one, appreciating steadily and regularly over the years. I foresee that situation continuing from now on, especially as today’s prices are, as a result of the slowdown now very reasonable.”
There are, says Senftleben, over 15,000 residential units within the territory he serves (roughly 60% of these are sectional title and 40% freehold) and properties throughout this district, he says, have always been sought after.
“No other greater Durban suburbs have quite the same appeal and quite the same ability to ride out difficult economic periods,” says Senftleben. “The entire precinct is recognized as being upmarket and, although we did undoubtedly feel the effects of the downturn, homes here have lost none of their status or prestige for both Durbanites and upcountry buyers. What is more, new developments are still regularly coming out of the ground and finding buyers.”
The precinct’s pre-eminent status, says Senftleben, does not mean that it is impossibly expensive: in the Gateway area, for example, it is still possible to find a single bedroom apartment priced at R800,000 – or even slightly less – and at Sunningdale, Glen Anil and Glen Hills freestanding homes regularly come onto the market priced between R1 million and R1,5 million.
As one moves towards the shoreline, says Senftleben, prices do rise: at Umdloti, La Lucia and Umhlanga, sectional title units have price tags of
R2 million plus and no freehold home is available here at under R3 million. At the other end of the price scale, this franchise has many homes listed in the R5 million to R10 million bracket and they also has several homes priced above R10 million.
“It has to be accepted, however,” says Senftleben, “that in the higher price properties on all agents’ stock lists, there is likely to be much stale stock. Often it is overpriced and therefore very unlikely to sell fast.”
Overpricing, he adds, despite regular warnings in the property media, is still all too often caused by rival agents giving unrealistic valuations in order to secure mandates for properties – and over-bonded sellers (mainly those who bought in the 2007 to early 2008 era) are often only too ready to accept these valuations because they find it difficult to accept today’s market realities. Every agent giving a valuation, he adds, should be able to justify it in relation to other similar homes sold recently in the area.
Currently, says Senftleben, all estate agents in the Umhlanga precinct are experiencing stock shortages – especially of correctly priced homes. His franchise, which after three years in operation now employs 10 agents, is very well established and needs more “well priced” stock to satisfy demand.
“Although we have large stock lists, as I have indicated, many still feature a large number of over-priced properties and it may take another year for certain sellers to accept today’s prices.”
“However, prices are now stabilizing and very unlikely to fall back.”
For owners of rental properties, says Senftleben, the situation is ‘very healthy’. Demand, he says, is strong and rents are still rising at 8 to 10% per annum. His franchise has some 300 units in its portfolio and the majority of these rent out at anything from R5,000 to R12,000 per month. Very seldom does a unit remain untenanted for more than a month and his team, he says, has in some months signed seven to eight new tenants. Above R12,000 per month, he adds, demand is not as strong, but Rawson Properties still regularly find themselves handling units priced up to R20,000 per month and there are still takers for these.
“Since the implementation of the National Credit Act,” says Senftleben, “many people – even some with high incomes – who want to buy are simply unable to do so. This means that they have to rent – and are often prepared to pay up to 35% of their incomes in order to secure prestigious-looking homes or apartments.In many cases people who qualify for a bond cannot raise the cash required to pay for a deposit and transfer fees.”
Asked to outline the future as he sees it for the Umhlanga area, Senftleben says that from here on a slow recovery seems almost certain to take place and, he believes, it will be ongoing.
“If one excludes the later phases of the boom era of 2007 and the early 2008 period, any buy in Umhlanga has proved to be a very good one, appreciating steadily and regularly over the years. I foresee that situation continuing from now on, especially as today’s prices are, as a result of the slowdown now very reasonable.”
