Market for well-priced quality apartments has taken off
"While Umhlanga's exclusive and convenient location in a key growth node has significantly contributed to a sustained demand for residential developments, the market for well-priced quality apartments has really taken off from the fourth quarter of 2013 - a trend which has accelerated further in 2014 and which is being driven by primarily South African buyers," he says.
For six months to date (mid-April 2014), Pam Golding Properties' Umhlanga office has concluded sales of R215m, comprising a total of 356 units in these brand new residential developments:
Beacon Rock
"Phase one of Beacon Rock is now 95% sold out with 34 of the 43 units in phase two already sold. Prices in this prime located development at the entrance to Umhlanga range from R1.575m for a one bedroom unit to R4.9m for a three bedroom penthouse. Phase one is already completed with the first section of phase two scheduled for completion at the end of the year," says Schenk.
In Umhlanga Ridgeside in the 77 unit development, Rockridge, 65% of the apartments are sold at prices ranging from R1.765m for a one bedroom unit to R11.9m for a four bedroom garden penthouse. Completion of this project is scheduled for early 2016.
Schenk says in both these two developments the one and three bedroom apartments have proven the most popular, with buyers in these projects a mix of owner-occupiers and investors seeking sound rental yields. "In phase one at Beacon Rock, some 70% of the owners comprise investors who are achieving unprecedented eight percent rental yields against an average for the area of four to five percent.
"Apartments in the residential component of The Zen, a mixed-use development just five minutes' from Gateway, have been rapidly snapped up by eager first time buyers and investors at affordable prices ranging from R650,000 for a one bedroom unit to R1.55m for a three bedroom, two bathroom apartment. Of the total of 63 units only 10 remain available. The high demand for these units is driven by the value for money offering and convenient, urban lifestyle on offer. This project is expected to be completed in August 2015."
Schenk says 48 out of 69 units (70%) have sold in Ilala Views, located in the sought after Ilala Ridge estate, with apartments, duets and freestanding homes ranging in price from R2.095m for two bedroom units to R7.3m for four bedroom units. Buyers in this development are mainly end users and construction is to commence shortly with phased completion anticipated in late 2015.
"Developers continue to demonstrate their confidence in the market by becoming increasingly active in the prestigious coastal area of Umhlanga. We are currently in discussions with regard to further new projects particularly in the Gateway/Newtown area," he says.
