Lower South Coast Emerges As Investment Hotspot In South African Real Estate
The Lower South Coast of KwaZulu-Natal is experiencing a significant surge in property investments, driven by its robust rental sector and attractive lifestyle offerings. According to recent data, the region has seen a 15% increase in property sales over the past year, with an average growth rate in property values.
The Lower South Coast, particularly towns like Margate, Port shepstone and Hibberdene, are attracting investors due to their relatively affordable price, rental income potential, and growing demand for holiday accommodation, says Johan Boshoff, regional director of real estate agency.
The areas rental market is thriving, witj a 20% increase in rental income over the past 2 years. This can be attributed to 3 factors:
-Growing demand for short term rentals, driven by tourism (12% increase in tourist arrivals)
-Increased interest from retirees and families seeking a coastal lifestyle
-Limited supply of new developments, creating opportunities for existing propert owners
Some notable changes:
-Average property prices in Margate: 1.2 Million (up 10% from 2022)
-Average rental yeald: 8-10% per annum
-Vacany rates: 5-7%(down from 10-12% in 2020)
Meanwhile in other South African property news:
-Tje South Reserve Banks recent 0.25% interest rate cut is expected to boost property sales, with experts predicting 5.7% increase in morgage applications.
-Sectional title sales in Rosebank Johannesburg, remains strong driven by young proffesionals and investors seeking convenient, secure living.
For investors and homeowners, understanding market trends is crucial.
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