Umdloti and Umhlanga take the spotlight
Rainmaker Marketing, a global property and lifestyle marketing agency, officially released its latest Property Market Report on Wednesday, 11th September 2024, highlighting Umdloti and Umhlanga as key pockets of excellence in KwaZulu-Natal (KZN). The report provides an in-depth analysis into the Sibaya Coastal Precinct, Umhlanga Rocks, Umhlanga Ridgeside and Umhlanga Ridge Town Centre (URTC). These areas are known for their rapid growth and luxury developments. Building on the successful release of the KZN North Coast Property Market Report and Western Cape Property Market Report, Rainmaker Marketing continues to identify areas with strong investment potential, showcasing key growth nodes and offering valuable insights for investors and developers looking to navigate the current property landscape.
According to Stefan Botha, Director at Rainmaker Marketing, this latest Property Market Report provides context into KZN, while unpacking how Umdloti and Umhlanga have performed. “The Northern coastal parts of KZN have emerged as resilient and highly sought-after investment destinations, even amidst broader economic challenges. With ongoing world-class infrastructure developments and secure estate living, we are confident that based on our research these regions in particular will continue to excel in the national property market,” states Botha.
Key highlights from the latest Rainmaker Marketing Report
Adult population growth: Umdloti and Umhlanga remain prime destinations of choice for new residents, driven by their lifestyle offerings and strategic location. Sibaya Coastal Precinct saw an influx of 71 new adults per month on average, which translates to about 28 new families moving into the area each month. Additionally, Umhlanga Ridge Town Centre (URTC) continues to attract new residents, with an average of 42 new adults per month, demonstrating the area’s appeal to professionals and families alike.
Average household income increase: The increase in average household income indicates consistent improvement in living standards and wealthy individuals moving into these areas. Since Dec 2021, household income within Sibaya Coastal Precinct and Umhlanga Ridgeside have both increased by an average of 177% each, with URTC achieving an average increase of 117%. Umhlanga Rocks has seen lower growth of 37%, this is based off the fact that Umhlanga Rocks is already an established suburb.
Buyer activity and location of buyers: While the prevailing age bracket for most buyers across the Northern coastal locations is reported as consistently being from 36 – 49 years of age, there are some exceptions with Umhlanga demonstrating a slightly more dominant higher aged buyer profile of 50 – 64 years of age. What the consistency of the 36 – 49 year age buyer bracket indicates is that both young and experienced professionals, as well as young and mature families, are finding these areas very attractive based on their needs for a convenient locale, security and aspirational living. The semigration trend is still alive and well with the location of buyers from Gauteng making up 34% and 35% respectively of buyers in Sibaya and Umhlanga Rocks.
Sales Performance: Notably, the report reveals that South Africa has the highest number of Dollar Millionaires in Africa, with 37 400 in total. Of these, 3 500 are based in Durban, Umhlanga, and Ballito, reinforcing the region’s attractiveness to affluent individuals. For the Sibaya Coastal Precinct, the predominant price range for 70% of sectional title (ST) sales is R3 million to R5 million. The average price of these sectional title units in an estate exceeds those outside estates by 19%, highlighting the value that buyers are willing to pay for secure estate living.
Within Umhlanga Ridgeside, properties in this area are selling predominantly between R1.8 million and R3.5 million, with 62% of sales falling within this range. The area’s mix of coastal and urban appeal makes it a popular choice for professionals seeking a live-work-play. Umhlanga Ridge Town Centre’s (URTC) sectional title units are mostly priced between R800 000 and R1.5 million, which also accounts for 62% of sales. This affordable range caters to first-time buyers and young professionals looking for modern, centrally located apartments.
Property transactions: The Sibaya Coastal Precinct led the region with a total sales value of R1.071 billion between July 2023 and June 2024, driven by mixed-use developments and its prime location. Umhlanga Rocks followed closely with R806 million in total sales during the same period, highlighting the ongoing demand for luxury properties in this established suburb.
Looking ahead
Rainmaker Marketing’s latest report also reveals predictions for the year ahead. Botha explains, “We expect to see the first cut in interest rates in almost three years at the end of September, which would significantly boost investor confidence and market activity. The easing of load shedding has also emphasised the critical need for renewable water solutions, with developments that address this poised for higher growth in property values. The formation of the Government of National Unity (GNU) has already instilled confidence in KZN’s property market, reflected in stronger financial markets, lower bond yields, and improved investor sentiment.”
Botha adds, “We also predict a continued demand for secure, multi-generational estates, particularly in areas like the Sibaya Coastal Precinct, with a growing number of buyers aged between 36 – 49 years of age. Despite external economic pressures, the resilience of property demand in Umdloti and Umhlanga remains strong, as seen by recent sales figures within the report. Additionally, long-term growth for the region will be supported by catalytic projects such as the Durban Aerotropolis and Investec’s R6 billion Brickworks Logistics Park, which will strengthen eThekwini’s infrastructure and global connectivity.”
The passionate property expert concludes saying, “the 19% and 14% increases in sales volume and sales value, respectively, across Umhlanga and the Sibaya Coastal Precinct over the past few years signify that, despite external economic and political factors, the demand for strategically positioned property investments in KZN will remain strong.”
To download the full Rainmaker Marketing Property Report click here:
https://bit.ly/3TpPlQA
