Economy / 5 September 2019, 6:30pm / Dhivana Rajgopaul
DURBAN –The AfrAsia Bank SA Wealth Report for 2019 has named Durban-Umhlanga-Ballito corridor as the fastest growing wealth market in South Africa, with a 25 percent growth trajectory reported over the last decade.
According to the report, the total wealth in Durban-Umhlanga-Ballito is $54 billion and between the three cites there are 210 millionaires that reside there.
Among the list of criteria by which the metrics of the report are set, the AfrAsia SA Wealth Report 2019 also lists the top assets in which High Net Worth Individual’s are investing in.
High Net Worth Individuals is a term that is used to describe people that have a net worth that is $1 million and above.
Property, both local and offshore, still remains on the list accounting for just above 28 percent of HNWI’s investable assets.
Within KZN’s North Coast alone are three key growth areas: Umhlanga, Ballito and the Sibaya Coastal Precinct. Although Umhlanga and Ballito are deeply established residential areas with a mix of housing types and price points, the Sibaya Coastal Precinct is officially only a few years old, with development happening on a continuous basis.
However, recent buyer activity in the Sibaya Coastal Precinct is showing that this node is fast catching up with the likes of Umhlanga and Ballito as a desirable property destination and further bolstering the evidence that this corridor is seeing the results of this regional wealth growth.
Within the node itself, high value homes have been sold within the range of R10 million to R80 million. This is staggering considering that currently only a handful of residential estates have launched.
"The sentiment pre-elections was that we would see a significant drop in property sales, however Balize Private Estate has just recently sold two properties valued at over R10 million each. This is testament that property remains a desirable and attractive investment option with even high-priced properties being snapped up, especially along the Umhlanga to Ballito corridor," said Peter Cameron, Sales Director of Balize Private Estate.
Buyer activity has also shown a steady influx of people from Gauteng choosing to set up primary residence along this corridor and choosing to commute into and out of Johannesburg for business.
Cameron added, "Durban has pipped Gauteng and Cape Town to the post as the best performing growth node in South Africa. Durban has historically been seen as offering little more than sunshine and the seaside, but investors are choosing with their feet and showing that Durban really stands head and shoulders above its sister cities in terms of quality of life".
Despite an average residential property price drop across the board over the last decade, some residential segments have seen major growth, most notably homes within luxury residential estates and luxury sectional title apartments.
The Pearls in Umhlanga is mentioned in the report as one of the top performing luxury apartment complexes in the country. According to the report, square metre prices in the Pearls Umhlanga are reaching to the similar levels of top apartments in Bantry Bay and Clifton in Cape Town.
The AfrAsia Bank SA Wealth Report 2019 also lists the criteria which are managing to attract and retain HNWI’s in the area, among them are lifestyle aspects like the warm climate, good private schools, shopping centres and robust private healthcare.
Moreover, it is estimated that in excess of 40 percent of HNWI’s own property in gated estates, both as primary residential homes and as secondary properties. Among the list of factors for the popularity of gated estates are safety and security, lifestyle and sporting amenities, a sense of community and vital lifestyle aspects like central piazzas, playgrounds and schools, and safe spaces for children with controlled traffic and thoroughfares.
The AfrAsia Bank SA Wealth Report for 2019 shows that Umhlanga has been the top performing residential market in South Africa over the past 10 years. Lagoon Drive in Umhlanga is one of the most expensive streets outside of Cape Town with each square metre having a value of R40000. Lagoon Drive is the location of the some of tge most expensive apartments in the country.