KZN residential estate now a growth corridor - Seeff
DURBAN - Over the past 18 months Palm Lakes Estate on the North Coast has seen its property trade curve turn upwards with both the number and the value of properties being bought and sold increasing, said Tim Johnson, Principal of Seeff North Coast.
"When this estate was initially launched just over 13 years ago it was unknown and was perceived to be a distant estate offering entry level affordability positioned “too far” from Ballito. However, with the rapid expansion of the North Coast and more and more master-planned developments creeping closer towards Palm Lakes Estate, this estate is now regarded as part of Ballito’s many developed estate offerings," said Johnson.
Johnson said that while the initial home offerings in Palm Lakes were often equated to be entry level - being priced at R600 000 to R700 000 for a two bedroom apartment in The Palms Apartment blocks in 2011, today these apartments are selling for R 1.4 million.
He added that the increase in semigration to Ballito has seen more higher-income professionals moving to this area which has also resulted in a surge of new quality homes being built in the estate with a greater emphasis on architectural design, increased size and higher quality finishes.
The initial homes launched in Palm Lakes Estate were designed as entry level residences that made estate living with all its facilities very affordable. With more and more higher income professionals moving to the North Coast, including those who have been away from the area honing their skills both nationally and internationally returning with their families, there has been a surge of new quality homes in Palm Lakes Estate being built.
These larger sized homes have a greater emphasis on architectural design, internal layouts and bigger outdoor/entertaining spaces . This has increased both the originality, creativity and livability of the newer homes. In essence the estate has began its maturation phase moving from from a growth proposition estate to one exhibiting early exuberance - meaning in Property terms that homes are in demand and with a greater mix of property types.
“Most of the homes built here in the last few years have been by purchasers wanting a new home designed for their family’s needs and future life stages.
Taking all this into account, the property market in Palm Lakes has shown robust growth in both sales and increasing prices over the past four years. Homes that are over 400 square metres in size are now being built and are being marketed for over R 4.5 million”.
This month an agent from Seeff concluded the highest sale conducted this year so far – being over R 5.1 million for a contemporary multi-level home just over 400 square metres. Sales like these certainly illustrate investor confidence in the estate.
Palm Lakes could even be considered to be in a growth corridor - placing the estate in a very favourable position for further evolution.
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