North Coast property market positioned for growth

Property development is still booming on the North Coast, with developers throwing millions every month into the local economy.

The past, future and present plans and challenges of property development was a hot topic at a panel discussion hosted by Hunt Properties’ Ryan Hunt at Simbithi Country Club on 21 February.

Developers, evaluators, bankers, and government representatives all had their say on the state of the local property market.

Horst Keil from HBR Projects said developers were starting to cater for younger families with more industrial designed homes that had a modern feel and were lighter on the pocket.

“Most people who come to the coast are in their thirties and forties and we have to look at the earning potential of these people, even with a combined income. If you are buying an R4 million home, it is frightening what you have to earn to get a bond.

“We are concentrating on the under R3 million market and I feel that is what the young families are going to look for in the future.”

With the rapid growth, primarily in Ballito, KwaDukuza municipality has been put under pressure to cater for and maintain infrastructure as well as ensure that investors in the region are kept happy.

Also read: Mount Richmore confirms sale to developers

ANC treasurer in Ilembe Thulani Ntuli said government wanted to attract investors to other areas in KwaDukuza like Maphumulo and Ndwedwe.

“We are spending a lot of money on infrastructure and our focus is on roads, cleanliness, and safety. In the past five years, we have had more growth than expected and because of that, there have been a few problems we are trying to address.

“Right now the major challenges are land invasions which we are trying to put a stop to and frustration from developers in getting their building plans approved. For this, the municipality has increased the capacity of staff, and created a platform for developers to come to us with their challenges.”

Keil said developers were not just selling homes but creating major employment opportunities.

“We employ 50-80 people on site. We have 15 subcontractors who themselves employ hundreds of people. We spend R4-6 million a month on the economy. It is important that the council does not frustrate us as developers because we really battle with occupation certificates and when we get held up for three to four months, it costs us millions.”

Ilembe Chamber of Commerce president Xolani Gumede said businesses had their challenges but the quality of life on the North Coast was second to none.

“Businesses want consistency and we have to be able to get owners here and keep them. We have a world-class infrastructure like the airport on our doorstep and retail centers. Tourism is a wonderful asset to this node.”

Clive Dyer from Investec property division said there was a huge demand for property and unique community living.

“We have seen that Umhlanga has grown out and most people are moving out of that area. We move with the developers and right now there is a lot of activity in the sales market on the North Coast. A lot of money from Johannesburg is coming to this area and young families, as well as retirees, are looking into buying property. If they like the coast, they will either look at Cape Town of KZN and Cape Town is far more expensive.”

Note: The original article incorrectly quoted Wesley Bench-Capon instead of Horst Keil. This has been corrected.

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