The residential developments market in the upmarket coastal area of uMhlanga, just north of Durban, has experienced a surge in activity in recent months, says Elwyn Schenk, Pam Golding Properties area principal in uMhlanga and eMdloti on the KwaZulu-Natal north coast.
“While uMhlanga’s exclusive and convenient location in a key growth node has significantly contributed to a sustained demand for residential developments, the market for well priced quality apartments has really taken off from the fourth quarter of 2013 – a trend which has accelerated further in 2014 and which is being driven by primarily South African buyers,” he says.
For the six months to date (mid-April 2014) Pam Golding Properties uMhlanga office has concluded sales of R215 million, comprising a total of 356 units in the brand new residential developments Beacon Rock, Rockridge, Ilala Views and The Zen.
Says Schenk: “Phase one of Beacon Rock is now 95 percent sold out with 34 of the 43 units in phase two already sold. Prices in this prime located development at the entrance to uMhlanga range from R1.575 million for a one bedroom unit to R4.9 million for a three bedroom penthouse. Phase one is already completed with the first section of phase two scheduled for completion at the end of the year.”
In uMhlanga Ridgeside in the 77 unit development, Rockridge, 65 percent of the apartments are sold at prices ranging from R1.765 million for a one bedroom unit to R11.9 million for a four bedroom garden penthouse. Completion of this project is scheduled for early 2016.
Schenk says in both theses two developments the one and three bedroom apartments have proven the most popular, with buyers in these projects a mix of owner-occupiers and investors seeking sound rental yields. “In phase one at Beacon Rock, some 70 percent of the owners comprise investors who are achieving unprecedented eight percent rental yields against an average for the area of four to five percent.
“Apartments in the residential component of The Zen, a mixed-use development just five minutes’ from Gateway, have been rapidly snapped up by eager first time buyers and investors at affordable prices ranging from R650 000 for a one bedroom unit to R1.55 million for a three bedroom, two bathroom apartment. Of the total of 63 units only 10 remain available. The high demand for these units is driven by the value for money offering and convenient, urban lifestyle on offer. This project is expected to be completed in August 2015.”
He says 48 out of 69 units (70 percent) have sold in Ilala Views, located in the sought after Ilala Ridge estate, with apartments, duets and freestanding homes ranging in price from R2.095 million for two bedroom units to R7.3 million for four bedroom units. Buyers in this development are mainly end users and construction is to commence shortly with phased completion anticipated in late 2015.
Adds Schenk: “Developers continue to demonstrate their confidence in the market by becoming increasingly active in the prestigious coastal area of uMhlanga. We are currently in discussions with regard to further new projects particularly in the Gateway/Newtown area.”