Neighbourhood 27 OCTOBER 2019
PROPERTY & LIFESTYLE
Sea for yourself Choices abound for those of us secretly yearning for that perfect house next to breaking waves and sandy shores, page 2 2
PROPERTY FOCUS: SEASIDE LIVING
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THE NORTH COAST IS HOT!
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PROPERTY NEWS
27 OCTOBER 2019
Neighbourhood
Property focus
SAN LAMEER, KZN NORTH COAST
THE DUNES, KZN
Coast to coast
Although living, working and playing in the city remain a popular option, especially among millennials, many South Africans and foreigners prefer to invest in dream homes on the coast OCEAN VILLAS, WEST COAST
WORDS: TRACY ANN VAN BLERK & MIRIAM MANNAK
IMAGES: SUPPLIED & SHUTTERSTOCK
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outh Africa is renowned for its magnificent 3,000km stretch of coastline offering a wide range of places to live. From spectacular cliff-top homes and quaint beachfront towns to secure coastal estates, lock-up-and-go holiday homes and trendy apartments – it’s good news indeed that this is the time to buy. On the Atlantic Seaboard – arguably SA’s most expensive area – recent FNB statistics show the growth rate in home prices has fallen from 25.5% in the first quarter of 2016 to 5.1% in the first quarter of this year. “Even luxury estates such as Zimbali on the KwaZulu-Natal North Coast has experienced this trend, with asking prices of certain properties decreasing from R16,9m to R13m and from R15,9m to R12m,” says Rory O’Hagan, head: luxury portfolio division, Chas Everitt International.
STRAND BEACH, CAPE TOWN
PUBLISHED BY TIMES MEDIA PROPERTY PUBLISHING
Amid one of the best buyers’ markets in decades, South Africa presents a great opportunity for local and foreign property investors to get
a foot in the door at some of the country’s most desirable coastal locations. Low interest rates and keen competition between banks to grant mortgage loans are two additional factors fuelling the current market conditions.
Cape Town Atlantic Seaboard & CBD
Proximity to the city and Cape Town’s natural beauty is the winning combination of this sought-after area. “Local buyers who want to downsize, foreign investors, semigraters and short-term buy-to-let investors are all part of our buyer pool on the Atlantic Seaboard – from the V&A Waterfront and Sea Point,
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PROPERTY NEWS
The time is now! MANHATTAN ON CORAL, CAPE TOWN
to Bakoven and Camps Bay,” says Richard Hardie, Knight Frank Real Estate. “This extends from apartments to freestanding homes.” Rob Stefanutto, Dogon Group director and head of developments, concurs. The secret to success, according to him, is creating a product offering to fit all consumers’ needs, ranging in price from R899,000 to R30m. Moreover, partnering with well-respected development groups that can deliver high-quality properties, is crucial. “Lock-up-and-go convenience with a twist,” is how Horizon Capital Residential MD David Sedgwick describes the The Aster in the City Bowl’s Oranjezicht. “These apartments are ideally suited for owners looking to downscale, with the benefit of a spacious outdoor area for easy entertaining and access to the beaches of Camps Bay, Bakoven and Clifton,” he says.
Cape Town Western Seaboard With its white beaches, postcardpretty views of Table Mountain, excellent schools, restaurants, shopping centres and easy public transport to and from the city, the Western Seaboard is a popular choice for property investors. The value proposition is also much more attractive to buyers who are unable to afford the prices characteristic of the Atlantic Seaboard. Manhattan on Coral, a New York-style apartment block in the Blouberg area, offers a selection of bachelor, one- and two-bedroom units, CleverProp.com CEO Schalk Pienaar says. “The design is distinctly edgy and based on typical industrial warehouse conversions. The open-plan apartments feature segments of exposed brickwork and steel beams, as well as floor-toceiling industrial-style windows.” Andrew Plunkett of The Milnerton Estates says buyers of its new Sandown development, currently being built along Sandown Road, mostly come from the surrounding environs. “They are homeowners
wanting more modern architecture, with security, education facilities and convenience in mind.” Always popular are Atlantic Beach Golf Estate and the Big Bay Waterfront. “Smaller apartments at Atlantic Beach start at R2m while cluster-style homes sell from R3m,” says Emarie Campbell, Pam Golding Properties principal for the western seaboard. “The Big Bay Waterfront offers secure estates with sweeping views over the ocean. House prices can reach up to R18,5m, with apartments starting at R1,65m.”
West Coast A variety of fynbos, a beautiful rocky coastline, and an annual show of flowers blanketing the the hills and farmlands in spring are only a few of the drawcards of the West Coast. Yzerfontein, once a sleepy little town, is now attracting a variety of property investors, says Graham Katz, Yzerfontein Property Developers, whose Ocean Villas was built to reflect contemporary West Coast architecture. “Clients who have bought here are a combination of local and national investors who want to take advantage of the exceptional lifestyle and value offered at this exclusive gated beachfront estate,” says Katz.
THE FAIRMONT, CAPE TOWN
it consists of 216 two- and threebedroom homes. The development is pet-friendly and each open-plan home features an enclosed garden.
KZN Balmy weather, an ocean warm enough to swim in, and green rolling hills epitomise this part of the country.
Natural beauty and quality of life aside, there are more pragmatic reasons for investing in coastal property. According to Lightstone’s Residential Property Index, at the end of July this year the national house price inflation index was at 3.6%, with the Western Cape continuing to buck the national trend with an annual rate of 5%. And while inland municipalities’ rates are between 1% and 4%, coastal areas generally perform above this range at about 3%. This means a seaside home is an attractive investment option, whether you are an international investor or a local resident wanting to semigrate, buy a holiday home, or retire.
Coastal estates on the KwaZuluNatal North Coast have experienced unprecedented growth over the past few years. San Lameer Villa sales director Derek Thomson says buyers at this secure beachfront family leisure and golf estate are primarily affluent businessmen and -women from Gauteng looking for a piece of natural paradise. “Wealthy retirees have recently started to settle here, along with a handful of foreign investors or swallows who chose to enjoy the province for a couple of relaxing months at a time,” he says. The Dunes Eco Estate is another attractive option in KZN. “It’s a small estate comprising of 34 grid-tied sectional title homes. There has been a mix of purchasers and tenants, with downsizing being the most common reason for buying,” says Rick Pulvirenti, Sanhall Property.
THE ASTER, CAPE TOWN
Campbell agrees that Yzerfontein is growing in popularity. “This is because of its excellent schools such as Curro Langebaan, just a short bus drive away,” she says. The value-for-money element plays a role, too. “Homes in Yzerfontein are listed from R1,5m, while vacant land starts at R500,000.” Langebaan, with its pearly white beaches on the West Coast, is a longstanding semigration hotspot. Close to the West Coast National Park, this town is all about lifestyle, leisure and water sports. The same counts for Paternoster and St Helena Bay a little bit further afield. Laaiplek, a small enclave close to Port Owen and Velddrif, is the site of Atlantic Waves, a brand-new development by Multi Spectrum Property (MSP). The perfect entrylevel option for buyers looking for a holiday home on the West Coast,
LANGEBAAN, WEST COAST
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PROPERTY NEWS
27 OCTOBER 2019
Neighbourhood
Foreclosure facts Here is what you need to know when buying a foreclosed property WORDS: ANNE SCHAUFFER
IMAGE: SHUTTERSTOCK
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foreclosure property is one where there’s legal action being taken against the owner/s, ordinarily for defaulting on their credit agreement by being in arrears. “Another term for foreclosure is sale in execution (SIE),” says Buyisile Maseko, FNB Home Finance: growth head gold sub-segment. “Essentially, the property is eventually attached, and sold at an SIE by the sheriff, through a public auction.” Maseko explained the ins and outs of the process, “When it comes to foreclosure/SIE-bound properties, because the bank is not the owner of the property but merely a mortgage holder over it, prospective buyers cannot make any offer(s) directly to the bank – they need to contact the owners/customers directly. Currently, when a customer is under financial distress, the bank makes available options such as Quicksell where the bank has consent from the customer
to advertise his/her property to interested buyers – this process entails the use of estate agents.”
The process and the payments
“With foreclosure/SIE, if you buy a property from SIE, there’s no estate agent. There’s a 10% deposit on the full purchase required on the spot and on the day of the SIE, of which 6% will be the sheriff’s commission. There’s no predetermined purchase price – the SIE process derives purchase prices by way of bidding and the highest bid is regarded as the purchase price. Thereafter, the buyer has 21 court days within which they can settle the balance of the full purchase price, as well as settle a portion of the outstanding rates and taxes and levies, if applicable.”
What to look out for
According to Maseko, there are a number of things to consider when buying a foreclosed property, such as, but not limited to:
• S tructural defects • Poor area (that is, lack of basic services, community unrest, crime, amenities, etc.) • Eviction – because SIE is a courtenforced process, some owners may refuse to vacate the properties; this will be the obligation (at the buyer’s cost) of the buyer to handle such instances • With sectional titles and secured estates/complexes – there will be levies payable, over and above the rates and taxes payable to the municipalities.
Hints and tips
Five pointers which Maseko suggests prospective buyers take to heart: • Get a preapproval on a mortgage from your bank before making an offer on a distressed property. Consider the fact that you’ll be competing with other potential buyers, so it helps having proof that you’re a reliable
prospect to get the bank to accept your bid. • Look at the condition of the property you’re looking to buy – if a house is too damaged, lenders will often be cautious to finance the purchase. So, if the property needs extensive repairs, you might have to put up extra cash, or take out a second loan to cover the costs. • Do your research – look at the area where the property is located. It’s not a bad idea to buy a distressed property in a good neighbourhood, but be careful of buying a distressed property in a distressed or extremely depressed neighbourhood. • Buying a property via SIE is a risk inherent process and as a buyer, you assume all the risk attached to this process. Make sure you understand legislation around foreclosure properties in the country in which you are buying.
AGENTS ARE EXPERT PROBLEM SOLVERS Negotiating is a tricky business and contracts can be problematic. Are you familiar with legalities or how to ensure that a contract protects you? Registered estate agents are licensed professionals with experience of moving transactions forward smoothly.
Another good reason why you should use an estate agent
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REAL ESTATE BUSINESS OWNERS OF SOUTH AFRICA
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PROPERTY NEWS
27 OCTOBER 2019
Soweto a favourite with millennial renters
Neighbourhood
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oweto is home to around 40% of the total Joburg population and this, coupled with the fact that not many people are able to afford to buy property in the current economic climate, is fuelling Soweto’s rental market. Other reasons contributing to the big rental demand are the many developments like the Lufhereng Development, Elephant Eye and Retlosebetsa currently taking place in the area. Khosi Sibiya and Phindi Mphahlele, owners, Seeff Soweto, say the rental market here is continuously growing. This is illustrated by the many queries they’ve recently received from either landlords looking to let their properties, or tenants searching for rental accommodation. “Areas such as Pimville, Diepkloof and Orlando are especially in high demand because of their proximity to amenities and work places. Protea Glen and Mndeni, for instance, are not as popular because they’re a bit further away from everything, but reasonable rental rates are the norm here. The greatest rental demand is definitely for property priced between R4,000 and R5,000 per month.” Sibiya and Mphahlele say millennials are the largest generation residing
in Soweto at the moment and they’re also the group who rent the most. According to the duo, the property values in Soweto’s 37 suburbs are continuously on the rise and because of this, the area is increasingly appealing to a middle-class market. “Completed developments, the upgraded road infrastructure, the Rea Vaya bus system, and commercial infrastructures have all added to making Soweto a place people want to invest in and where people want to live – this was not necessarily the case two decades ago. “At the moment, rental rates in Soweto are around R2,500 per month for a one-bedroom apartment, R4,000 per month for a two-bedroom apartment, R4,500 per month for small homes, and R7,000 per month for large homes with two garages and possibly a swimming pool as well. “Areas in Soweto with the most affordable rental rates include Protea Glen, Bram Fischerville and Lufhereng and the most expensive rentals can be found in Diepkoof, Pimville and Dhlamini. “There’s also a demand for student rentals in especially Pimville as it’s close to the Soweto campus of UJ. Prices for student rentals here range between R2,500 and R3,000 per month.”
Convenient, contemporary student accommodation in Stellenbosch
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n a town where student accommodation is always in demand, a new development called Beau Vie stands apart from the rest because of its unique offering and prime location. Situated on Banghoek Road, Beau Vie is not only well-placed on Stellenbosch University’s Green Route, which affords additional security for students in the area, but it’s directly opposite the Engineering faculty. The development includes onebedroom apartments instead of the bachelor or two-bedroom units usually offered to students. With only 18 apartments in the development, Beau Vie offers exclusive living for the discerning student. “When it comes to buying or renting an apartment in Stellenbosch, safety is one of the top criteria for students
and their parents,” says Louise Varga, Pam Golding Properties area manager for the area. “Parents want to know that their children will be able to move safely from their apartment to campus. Properties located on the university’s demarcated Green Route, have security patrolling on foot and bicycle.” Parking is a scarce commodity in Stellenbosch and accommodation that is, quite literally, on the doorstep of one of the university’s largest faculties, is a huge drawcard for potential buyers, says Vanessa Johnson, Pam Golding Properties agent, Stellenbosch. Few of the new residential developments in the town offer onebedroom apartments, but Beau Vie has 16 and two bachelor apartments. Each unit comes with a combination of fridge/freezer and washer/dryer, as well as a microwave. There’s biometric
access control and a security wall with electric fencing. Students will also have a safe communal space to socialise, as there’s a rooftop entertainment area with an undercover braai. Secure parking is also available. Being a university town, much of the development in Stellenbosch takes place close to the university. Student accommodation is a massive driver of the residential property market, considering that of the more than 30,000 students registered annually (2018 data) only 6,500 students can be accommodated in the university’s 31 official residences. Historically, residential properties in student towns around the world achieve a higher capital growth compared to the national average. “This is partly due to the impact the influx of students has on the population, which in turn fuels the sustained rental demand,” says Varga.
beach resort
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Sectional title property prices in Stellenbosch have therefore increased by 41.6% in the past 10 years (2009 to 2019).
Varga adds, “Accommodation located close to learning institutions can be rented at a premium and occupancy is usually at over 97%.”
27 OCTOBER 2019
Neighbourhood
PROPERTY NEWS
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Investment no-brainer The KwaZulu-Natal North Coast region is fast becoming the new ‘property capital’ of SA WORDS & IMAGES: SUPPLIED
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ith King Shaka International Airport on its doorstep, and nine international flight routes – including three BA flights per week from London’s Heathrow airport – the North Coast region of KwaZulu-Natal continues to attract an influx of home buyers from the rest of the province, Gauteng and other regions, even globally. Says Carol Reynolds, Pam Golding Properties area principal, Durban Coastal, “With its laidback ambience, golden beaches, idyllic year-round climate and abundance of good schools, semigration to this coastal belt between Durban North and Ballito remains a recurring trend, particularly in Sibaya, eMdloti and uMhlanga. This includes Gauteng commuters seeking an unbeatable lifestyle while the main breadwinner travels to work Monday to Friday or as needed. It’s a quick and easy commute, avoiding traffic congestion while you sit in airconditioned comfort in the cabin.” Durban has won best lifestyle city in South Africa for the past few consecutive years according to the Mercer Index, further underlining investor confidence in a province with a highly desirable lifestyle and sound value-for-money homes. This is coupled with ongoing investment in commercial property in hubs such as uMhlanga Ridge and La Lucia Ridge. And with no shortage of hospitals and medical facilities, the region is also benefitting from a growing retirement market. “Whether you choose Durban, Durban North, uMhlanga, eMdloti or Ballito, you have everything on your doorstep, including all amenities, office parks and a range of residential property options – from modern apartment buildings and spacious freestanding family homes to secure lifestyle estates,” Reynolds says. According to her, people are looking for security and lifestyle – the ability to enjoy the freedom of cycling, walking and
playing golf within secure environments with dams, lakes, forests and walkways, as well as the beach. “Also critical is price, as well-priced stock moves while over-priced property sits on the market. Buyers are also showing a preference for renovated homes rather than fixeruppers. In addition, sea views are sought after despite premium pricing – and we find the higher-priced sea-facing units in developments sell out considerably ahead of those without sea views. In terms of residential property, this region has also experienced steady growth year on year, whereas some other regions have experienced peaks and troughs.
New developments
“New developments have sold well. In uMhlanga, an area comprising approximately 70% sectional title units, these include Coral Point and Le Boulevard, which are either nearly or fully sold out. In Durban North, catering to a huge demand, all 26 units of phases one and two in a new development called Stonehurst, sold out in a few weeks – well priced under R1,5m,” Reynolds continues. “Upmarket developments are fetching top dollar – Gold Coast Estate in Sibaya sold out quickly, with plot and plan package deals selling between R5m and R12m on relatively small plots of around 500m2 to 600m2 and vacant plots peaking at R6m. Among other top-end sales, we sold a frontline penthouse apartment at the Pearls in uMhlanga for R30m. Encouragingly, we’re seeing a number of cash sales across all price bands. “Further developments are also on the cards – a prime beachfront block in uMhlanga, and in Sibaya, a new development to comprise three apartment blocks as well as a huge resortstyle development near the casino.”
Vacant land selling
In Signature Sibaya, Reynolds says plots of vacant land of about 2,000m2 are selling at R12,5m.
“Sibaya prices as a whole have surged from R25,000m2 in 2016 when Ocean Dunes was first launched, to over R40,000m2 for new developments. In Signature Sibaya, further capital is being invested in new homes which will attract prices upwards of R20m to R30m when completed. “Sibaya has provided a huge boost for this region – with the new private university planned by AdvTech and private schools are stimulating further interest in the area. “The improvements in the road infrastructure near Gateway and Cornubia have also had a positive impact on areas such as Prestondale and Gateway, while the conversion of uMhlanga College to Reddam has also been a positive upgrade for the area.” Adds Reynolds, “Not to be overlooked is nearby eMdloti, currently one of our busiest suburbs, which we believe is driven by increased activity in Sibaya. It has bridged the distance between the hub of uMhlanga and eMdloti. In addition, while Sibaya offers spectacular views, there’s a limited stretch of prime beach land in eMdloti which attracts those seeking to literally live on the beach.” In Ballito, to the north of eMdloti, Pam Golding Properties says homes within security estates priced between R1,8m and approximately R6m are most in demand, in estates such as Umhlali Country Club, Ballito Gardens, Simbithi, Brettenwood Coastal Estate, Dunkirk and Port Zimbali. Says Pam Golding Properties area principal Farrah Williamson, “Over the years Ballito has emerged from its former image as a holiday town to becoming a primary residential destination comprising some 70% permanent residents. While Ballito attracts buyers from around KZN and young families relocating from Joburg, Zimbali draws mainly Joburg buyers.”
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CUMBERLAND 833, BREDELL
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• Luxurious 1, 2 and 3 bedroom homes for sale (rentals available) • Golf course, croquet, bowls, A compact and neat north-facing home with two en-suite bathrooms
Immaculate north-facing home with sunny enclosed patio
Immaculate and renovated northfacing home
Patio Size: 113 m2 Levies: R2 119
Courtyard, Enclosed sunroom, Study Size: 152 m2 Levies: R3 054
Sunroom, Patio, Study Size: 164 m2 Levies: R3 742
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SUNBIRD 1108, VREDENBURG
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swimming, tennis, walking paths • Clubhouse, art studio, pottery studio, library, hair salon & gym
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SWALLOW 1101, VREDENBURG
• Healthcare Centre • 24-hour security & access control • Fibre & high speed Internet • Established in 1987 – 32 years A delightful and immaculate northfacing home
Lovely, private 3-bedroom home overlooking the Bredell pond
Immaculate home situated alongside a dam with a spacious garden
Enclosed sunroom, Courtyard, Study Size: 166 m2 Levies: R3 338
Patio, Sunroom, Courtyard Size: 146 m2 Levies: R3 445
Enclosed sunroom, Courtyard, Scullery Size: 244 m2 Levies: R4 765
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Sales: Angie Wilson: 071 465 1259 Susan Connoway: 083 234 3929 sales@helderbergvillage.org.za
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Rentals: Vicky or Jodi: 021 855 8335 rentals@helderbergvillage.org.za
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