Local Economic Outlook
While 2018 was very much a buyer’s market in KwaZulu-Natal, so far in 2019 it appears the market is beginning to shift somewhat. Increased sales were becoming prevalent towards the end of 2018, with homes starting to sell faster in areas closer to schools, major highways and economic hubs. Airports also proved to be a key factor in sales. Due to all of this, the North Coast has continued to be a hotspot for investment. This is evidenced by the rapid advancement and development of both commercial and residential opportunities in the region, from Umhlanga through to Blythedale Coastal Estate.
According to statistics, KwaZulu-Natal’s North Coast is attracting new buyers under the age of 35 and people over the age of 50. This shows that the area is popular with new homeowners and people that are retiring or looking to invest in a second or third property as a way of generating an extra income.
According to PropertyFox (via Business Report Online), we can expect 6 top trends in 2019:
- The sharing economy
Friends entering into partnership agreements to afford an initial foray into the property market will continue, as will the increasing appeal of buying to Airbnb.
- The caring economy
Parents have been aiding their children to start their property portfolios because of an increased cost of living. This is set to increase.
- Ecologically friendly housing
Consumers are constantly on the hunt for cost-effective solutions. Nardee Cotterell, Chief Operations Officer at PropertyFox, said “We certainly saw homeowners investing more in this regard in the past 12 months, purchasing and investing in properties which have boreholes and rainwater tanks. Again, we expect this to continue in 2019,”.
- Estate living for security
With the increasing demand for safety and security, there has been growing popularity when it comes to purchasing houses within security estates. The North Coast still has a limited number of estates, therefore prices will continue rising for these kinds of investments.
During the beginning of 2018, the semigration trend to Cape Town slowed down with KZN (and the North Coast in particular) picking up the slack, due to the Western Cape water crisis.
- The rise and rise of prop-tech
Technology allows buyers and sellers to quickly connect online. This trend is set to continue in 2019, as technology (and the applications thereof) continues its rapid advance.