DURBAN - KwaZulu-Natal is the only province where houses appear to be beating inflation while Umhlanga continues to be the hotspot for the province's property market, according to Seeff.
Brett Botsis, the Sales Director and Licensee of Seeff Umhlanga said that Seeff Umhlanga sales figures are up by 31% year on year in comparison to 2017. He added that recent sale figures show that there was a 9% increase in value for the first half of this year.
The progress in sales can be attributed to a combination of factors including market sentiment, a development market that is booming and interest.
"The recent interest rate cut to 6.5% was welcomed by the South African property market, and this provided an opportunity for growth and encouraged individuals to get involved in the property sector," said Botsis.
Developments in and around the Umhlanga area including the Sibiya development has continued to be a stimulating factor to the confident state of the KZN property market.
With the new developments, additional retail stores and restaurants have moved to the area. Also, businesses that were based in Durban CBD and Westville have made Umhlanga Ridge and Ridgeside their home.
Botsis said, "New developments like Oceans Umhlanga and the Park Square in Umhlanga Ridge have an impact on the state of the property market".
He added that the local Umhlanga node's property market value has grown to over R10 billion and they are confident that it will continue to grow in the years to come.
According to Botsis, the coastal city has continued to be the province's hotspot because it is a lucrative market offering for investors while beautiful beaches, world-renowned hotels, restaurants and luxury apartments are also a huge drawing card.
For those who are looking to move to the coastal city because of its hotspot status should be prepared to spend a pretty penny.
According to Seeff, the average rent for a one bedroom apartment is between R8 000 and R10 000, while it will cost between R1,5 million and R2 million to buy a one bedroom apartment.
The average rent for a two bedroom apartment is between R10 500 and R20 000. To buy a two bedroom apartment in Umhlanga will cost between R2,5 million and R4,5 million.