The COVID-19 pandemic has caused a dramatic change in the way we live, work and play and its ramifications will still be felt for years to come. One of the changes caused by the pandemic has been how people work and, as a result, where they choose to live.
According to Vernon Vogt, Principal of Jawitz Properties North Coast, the current economic situation combined with the fact that operating businesses virtually has become the norm are contributing factors to more and more families moving to KwaZulu-Natal’s North Coast.
The KZN North Coast has seen as much as 60% of buyers for new off-plan developments originating from Johannesburg and we have seen a spike in enquiries from Gauteng residents wanting to relocate to the North Coast, specifically to the greater Ballito area, now that they work remotely.
“There has also been a shift in interest from buyers looking for holiday homes. Earlier this year, the holiday home and investment markets were quite depressed but we are seeing a resurgence,” says Vogt. Historically low interest rates are also contributing to the major drive in purchases in this area and provides investors and buyers with another reason to take the opportunity to invest or relocate. New data from Lightstone Property indicates that lower interest rates and the on-going correction of property prices has created a market ripe with opportunity for those looking to enter the market or buy up – or those looking to buy second properties as investments or holiday homes.
“Despite the general slowdown at provincial level The Eastern Cape, Kwazulu-Natal and Mpumalanga province have been growing at increasing rates over the past year to an extent that they now lead the provincial growth with rates currently above 5% per annum,” Lightstone said. It said that that the country’s coastal towns are also typically seeing better returns than the inland market.
Among the major municipalities the coastal municipalities are generally performing better than those inland and this relationship extends to all coastal and inland properties as shown by their respective indices.
With the property market in the Ballito area being valued at more than R3 billion and rapid infrastructural development coupled with a desirable lifestyle creating sustained growth, buyers are taking advantage of low interest rates and work from home conditions to experience the benefits of living at the coast.
“The North Coast has always been a popular holiday destination; however, it is in the process of reinventing itself as the lifestyle hot spot in South Africa,” concludes Vogt.