Upper Highway still on the up in popularity and property sales
In 2014 the property market in KwaZulu-Natal saw 38 843 units sold with a total value of over R31 billion, giving an average selling price of just over R800,000 per unit. This represented an increase in sales of 1.55% on the previous year - but the increase in sales value was 15%. Says Dave Jones, Seeff KZN Regional Manager: "The big picture is that we are definitely moving in a positive direction. However, most residential property forecasts see a weakening residential demand through 2015 and 2016, in line with stagnant growth in the economy and mildly increasing interest rates. But in the context of the Upper Highway market there is no need for gloom and doom. This is primarily because for the last 4 years we have seen consistent demand for the area, fuelled primarily by value for money, excellent schooling options and a strong retiree market. Michele Wilson, Seeff Hillcrest & Kloof Director, says that the average growth in property prices in the Upper Highway area over the last 10 years has been 6.8% per annum. "This is quite remarkable given the property downturn in 2008 and 2009. Property sales are often driven on sentiment, and most of our clients have a cautiously positive outlook, based on the relatively low interest rate and the increasing appetite of the banks to approve bonds, especially in the market below R1.5m. Also, the banks view the Upper Highway as an A+ area in terms of sound security. "Upper Highway residents are fortunate in that we have had a consistent pattern of between 1100 and 1300 units sold each year for the last 4 years, which means that the area remains popular. Stock levels have been low at the under R1.5m level for the first time in seven years. However, the planned launch of the last phase of Cotswold Downs will see approximately 700 units come onto the market at an average price of R1.6m. "Cotswold Downs has been a success story of note. In the past year Cotswold Downs has seen over 120 sales with a total value of over R110m - and although most of these sales were of vacant land, it reflects huge confidence in the area and means that this 750-unit development now has approximately 600 units sold." Wilson gives her list of the big five most popular areas currently in Upper Highway: "Hillcrest is top, selling about 540 units per annum, followed by Kloof (278), Waterfall (190), Gillitts (185) and Shongweni (156). The area adjacent to Summerveld is the next node for development, both residential and commercial, and the land where the Shongweni Farmers Market is situated has been sold for future commercial development. "The average time homes currently spend on the market is 53 days, with the difference between asking and selling price at 8%. However, Seeff Hillcrest & Kloof's sole mandates take an average of only 37.7 days to sell, and the difference between our listing price and selling price is 6.5% . This may be because Seeff are aggressive in the marketplace in terms of advertising, and we fall under the top three companies in the area in terms of overall showhouse activity." Contact Seeff Hillcrest & Kloof Michele Wilson on 083 415 3970, office 031 765 5326; email michelewilson@seeff.com
