Property and lifestyle marketing agency, Rainmaker Marketing, has released their first-ever quarterly Property Market Report that focuses on the KZN North Coast region.
Compiled by analysts in the agency’s market research department, the comprehensive report provides invaluable insights for discerning investors and prospective buyers, shedding light on the dynamic landscape of buyer activity within the towns of Salt Rock and Ballito on KwaZulu-Natal’s North Coast.
The research and data from Rainmaker Marketing’s Property Market Report validates the notion that KwaZulu-Natal North Coast is one of South Africa’s most sought-after and fastest-growing regions – despite challenges experienced in recent years within the province.
“The desirable infrastructure and amenities that are drawing people to the North Coast include schooling, healthcare and medical practices, multiple retail malls and centres, blue flag beaches, and strong urban precinct management. Younger, more established families are being drawn to the region for its educational, retail, and lifestyle benefits – as well as being near King Shaka Airport,” says Stefan Botha, Director of Rainmaker Marketing.
Semigration
Semigration has been a noteworthy trend. Of the people moving to KwaZulu-Natal’s North Coast, 77% are from within the province itself. The region has also witnessed an influx of residents from other provinces, with Gauteng contributing 12%, Western Cape 6% and the rest of South Africa 5%. The overarching attraction to relocating to KZN’s North Coast is attributed to exceptional educational facilities, robust security measures, quality healthcare services, diverse retail options, and efficient water and urban precinct management.
Buyer activity
Brenda Padayachee, Head of Market Research at Rainmaker Marketing, provides insight into buyer activity on the North Coast, noting that the predominant buyers in Ballito (36%) and Salt Rock (45%) fall into the 36-49 age group. This demographic is largely driven by young families seeking top-class schooling and lifestyle amenities. Another interesting stat from the report shows that 45% of buyers in Ballito and 41% in Salt Rock are over the age of 50, which calls for the emergence of diverse retirement offerings. Ballito and Salt Rock specifically are experiencing resilient growth, with approximately 102 adults moving into the area each month, equivalent to around 41 families per month.
Market dynamics
According to the report, over the last 12 months the average price of a Sectional Title unit within an estate exceeded those outside by 48% in Ballito and 49% in Salt Rock. Additionally, the number of Freehold sales occurring in estates exceeded sales outside of estates by 144% in Ballito and 190% in Salt Rock.
Price point and affordability
The average household income in Ballito and Salt Rock has grown by 89% and 144% respectively since 2020. This reflects the increased affluence of the area and the growing property market.
Year-On-Year performance
“We’ve been very fortunate to be involved with the launch of some of the most prestigious developments in the North Coast of KwaZulu-Natal. It’s been incredible to witness the growth of an area that reflects the quintessential South African lifestyle, including great weather, beautiful beaches, perfect waves, and the benefits of living along the golden KwaZulu-Natal coast,” says Botha.
Top-performing estates include Brettenwood Coastal Estate, Seaton Estate, Dunkirk Estate, Simbithi Eco Estate, Zululami Luxury Coastal Estate, and Elaleni Coastal Forest Estate, all experiencing excellent capital appreciation of up to 25% for sectional scheme properties.
Forecast
According to Botha, the outlook for the North Coast appears promising. “We believe that we’ve seen the peak in interest rates and anticipate a gradual decline over the next year. The expected relief on interest rates in 2024 will bolster affordability and stimulate North Coast sales beyond 2023 numbers. The region has also been attracting local and international developers, offering a diverse range of products to the market across various affordability brackets. The introduction of the R2.2 billion Club Med Tinley is poised to contribute to significant job creation, attract international visitors, and enhance infrastructure. Additionally, upcoming interchange upgrades, such as the Sheffield Beach project set to commence in 2024, signify a commitment to ongoing development.”
Based on Rainmaker Marketing’s Property Market Report, the depth of Sectional Title demand in both Ballito and Salt Rock will continue to be under R3 million. The report also indicates that estates continue to dominate the market with 44% of Ballito homes and 57% of Salt Rock homes being within an estate.
“The implementation of a privately managed water supply between Siza and the municipality, coupled with holistic urban management and quality lifestyle amenities will continue to attract investors. The region’s sustainable initiatives, supported by a strong business community, a thriving chamber of commerce and backing from local businesses, are expected to fuel growth and further solidify the North Coast as a thriving economic hub.”
Disclaimer: The statistics used in this report were sourced from Lightstone Data, with interpretation and analysis conducted by Rainmaker Marketing.
