The inland town of Queensburgh in KZN is experiencing a high demand for rental property - especially for two and three bedroom homes, apartments and duplexes in complexes priced between R5500 and R8000 per month.
Michelle Vermeulen, Seeff’s MD in Queensburgh, says due to this high demand, Queensburgh is now experiencing a shortage in rental property and many landlords are trying to maximise their potential rental income by letting multiple homes and granny flats on the same property.
“Demand for this type of property is however low as they are often not pet-friendly and sharing a property with others are a draw back for many tenants.
Tenants in Queensburgh also prefer the security of complexes compared to full title homes and because of this we also have low demand for freestanding residential homes.”
Vermeulen continues that properties in Malvern fetch higher rentals than property in areas like Bellair and Seaview due to the good condition of the area and the properties located here.
“Property located in security complexes is highly sought after across the board especially in the price range from R5 500 to R8 500 per month”.
Vermeulen adds when a rental property is priced fairly and represents good value for money, it gets snapped up right away.
“We recently rented a four bedroom duplex with three bathrooms and a one bedroom granny flat with a monthly rental of R 10 000 pm as well as a three bedroom, two bathroom simplex in Escombe for R 8500.00 per month. Both these properties were rented within a day”.
Vermeulen adds that new residential development in the Queensburgh area will offer investment opportunities to buy-to-let investors and will alleviate the rental shortage.
Demand for rentals are high and landlords will secure tenants very fast if their unit is well prices and in a good location.
There are many young families in the area looking for secure homes and they are willing to spend 10% to 15 % more on homes located in security complexes.”
Vermeulen concludes on the sales side they have noted an influx of first time home buyers entering the Queensburgh market.
“While Queensburgh is only 15 minutes away from Durban and Pinetown, property here is much more affordable. People who are transferred from Gauteng to Durban are willing to move to Queensburgh because of the short commute into town.
Homes are priced from R520 000 for a two bedroom flat or simplex and from R800 000 for a three bedroom home. Anything priced under R1 million offering good value for money sells within a week.
“We have also noted many properties coming onto the market in the R1.3m to R1.6m bracket in the Malvern, Escombe and Northdene areas.
These homes generally have three bedrooms and two bathrooms, either with a granny flat or with potential for creating one.
Another ‘hot item’ on the list in Queensburgh is land. There are great opportunities for new developments which is reflected in a large appetite for land of 1000sqm and bigger - at prices from R500 000 to R2 million”.