The Umhlanga property market continues to perform outstandingly well according to Brett Botsis, Seeff’s licensee for the area. The Seef group explained that 2021 was a record-year for the high-end area of KwaZulu-Natal and according to Lightstone data some R3.2bn in transactions were recorded for the last twelve months to the end of September at a median price of R4.4m.
Since the beginning of the pandemic in 2020, there has been a significant uptick in sales in the R5m to R10m range. Botsis said there were also around 23 sales over the past year above this, mostly in estates such as The Executive Estate and Izinga Estate and freehold houses. Two properties sold for more than R20m in Izinga Estate.
According to Botsis, the results of the pandemic gave a boost for the Umhlanga property market, with more local buying as well as buyers increasingly moved from upcountry provinces, especially Johannesburg. Umhlanga is a wealthy enclave with more people semi-grating there.
Umhlanga is competing against Cape Town’s Atlantic Seaboard and Plettenberg Bay as among the most popular areas for wealthy buyers. Values have grown by around 6% annually over the past five years which is well above the average capital growth rates. There is also a strong rental market which is an attractive benefit to rental investment buyers.
Although buyers are traditionally in the 36 to 49-year age group, there has been an increase in younger buyers who now comprise about 27% of recent property purchases.
Sectional title property is a popular option and comprises about 70% of all market stock. The balance is freehold, 6% of which are located in estates.
Apartment prices range from R1.6m to over R2m in The Breakers Resort. Bigger apartments range from around R2.4m to R3m.
There is also a choice of luxury apartments which sell from around R4m. Also in high demand are the penthouses such as the penthouse in Pearls of Umhlanga for R39.5m and the 817 square metre duplex penthouse in Oyster Schelles for R35m, according to Seeff.