Property Report: There is plenty to be positive about

I can’t help but be amazed at the amount of negativity conveyed on a daily basis through the press and on social media.

I have recently found myself having to be very selective about what and who I choose to pay any attention to especially when it comes to our economic and political landscape and commentary. When it comes to our local real estate market, we are not completely sheltered from external forces and certainly have had an interesting year, but there have been so many encouraging trends and milestones that on the whole I am incredibly positive.

Whilst it is true that in a number of cases our year on year figures and performances across various market sectors are down, this is by no means a statistic to take at face value. People need to remember that we have been coming off a really high base over the last few years and it is inevitable to see some normalization in the market.

By way of an example, the Western Cape has experienced unprecedented growth since recovering from the Global Financial Crisis in 2008, and although 2018 has been a big reality check, it is both inevitable and expected for growth to slow down. The North Coast is no different, but we are merely experiencing some growing pains as we emerge from our adolescence and mature into a real national player.

So what are some interesting highlights from 2018 so far? The first really nice trend has been the performance of higher end properties in Simbithi during the year. This wonderful estate which is now 15 years old has been an incredibly popular investment destination, however trade above the R10 million level has been historically very slow. It is interesting to note that since its inception, up until the end of 2017, there had only been six transfers above this mark, with the highest value being R11.25 million. So far in 2018, this figure has doubled with a further six sales above R10 million, the highest of which at R11 million.

The year is not done yet, and we may well see further transactions and potentially even a record sale price. It was also exciting to be part of a Simbithi transaction recently where our team sold a home for five percent above the marketing price due to a multiple bid scenario. Whilst this is certainly not the norm, it does tell us there is a healthy appetite for a certain product in the area.

Luxury market sales do tell us a lot about the sentiment of a market, and these kinds of result are encouraging and potentially a sign of good things to come in 2019, especially for a number of our emerging lifestyle estates.

Another great result was a recent sale we concluded on a beachfront apartment in Ballito for R5,8 million. Not only is this a 2018 record, but also the second highest value ever achieved for a sectional title property along Compensation Beach Road.

But it’s not just the high end market that has seen wonderful movement in recent times. We have had fantastic results in places like Sheffield Manor, Manor Estates and Shortens Country Estate to name but a few. Demand is high and well-priced stock doesn’t sit for long. Balwin Properties have also enjoyed phenomenal success with their Ballito Hills project which caters for a similar market. As at the end of November, the developers had sold an impressive 355 units since launching in mid-2017, and there is no real sign of things slowing down.

With all the development happening around us and exciting announcements and launches in the coming months, the North Coast is certainly South Africa’s investment and lifestyle darling, and we’re bracing for a bumper 2019. Watch this space!