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Tuesday Nov 09, 2021

Luxury market revival bodes well for KZN

Despite the challenges of the past year, there is hope on the horizon as South Africa's property market shifts in an upward direction.

According to Lightstone's recent report, property in the 'luxury segment' of R1.5m to R3m are now the top-selling category, with the 'super luxury' segment of R3m+ following suit. This renewed investor optimism is evident on the KZN's mid-South Coast as semigration to the coastal region continues to trend for early retirees.

"We've certainly noted that interest in property on the KZN South Coast has picked up markedly the last two months after some ups and downs this year," said Phil Barker of Renishaw Property Developments. "Gated villages remain popular, especially those offering high-tech security, affordable health care options and a thriving local community."
 
According to Lightstone's report, while luxury properties increase in demand, they're selling for around 85% of the asking price and remain on the market for just under five months. Statistics provided by Ooba indicate that the booming property market can be attributed to the record low interest rates, while banks continue to compete for a bigger share in the home loan market.
 
Barker said Renishaw Hills on the mid-South Coast is an example of an in-demand estate attracting investors who are prioritising quality, safety and lifestyle.
 
"The first quarter was slow in terms of sales but then we experienced a bit of a boom after the Covid-19 hard lockdown," he explained. "We detected a good recovery in demand in the second quarter, as it seemed many people had reconciled their lifestyle with the difficulties around continuing Covid-19 restrictions. The focus of many prospective purchasers was based on a re-assessed lifestyle which included the desire to live in rural areas, out of the city, with an attachment to nature. Affordable health care options, such as home-based care, were prioritised."
 
The civil unrest of the third quarter understandably impacted property demand on the mid-South Coast, despite there being no incidents in the immediate vicinity. However, by the end of the third quarter, Barker said interest started to pick up again with a massive shift in focus to security.
 
"The start of the fourth quarter has seen that interest increase and there are reports of property sales up and down the coast starting to move again," said Barker. "October has been a very busy month for us with our sales staff inundated with queries and bookings for village tours. As a general property trend, demand for coastal properties is good, specifically in the R1.5m to R3.5m price bracket."
 
Barker said the experience of Covid-19 and civil unrest have forced many investors to reassess their lifestyle priorities with coastal living remaining in demand: "There has been increased focus on wide-open spaces and the opportunity for activities that allow people to keep fit and active on the estate. These are undoubtedly long-term trends which is why we remain cautiously bullish for the industry in general, but more specifically for coastal KZN."
 
Renishaw Hills is a high-quality, secure and well-established mature lifestyle village in Scottburgh on the KZN South Coast To find out more about living the holiday life, or to book a tour with all relevant health-and-safety measures adhered to, contact Renishaw Hills on info-AT-renishawhills.co-DOT-za or visit www.renishawhills.co.za

    
 

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