New KZN airports impact property

New KZN airports impact property
2008/04/21

Currently under construction, the King Shaka International Airport and Dube TradePort at La Mercy are already beginning to have a major impact on the property market in the area, with a high demand evident for industrial and commercial land and a growing trend towards those seeking permanent residences on this part of the north coast, says Clive Greene, area principal for Pam Golding Properties, based in Ballito.
"These major projects will provide a huge boost for the local economy and create numerous job opportunities. Currently we are seeing the start of a surge in demand for both commercial and residential property, with an unprecedented demand from developers for land currently being rezoned for industrial use - particularly given the opportunities presented for secondary industries as a spin-off from the airport," says Greene.
The airport, which will be a tradeport as well as a passenger terminal, is easily accessible to both Richards Bay and Durban, both major shipping ports through which raw materials are transported to factories for processing and then freighted out either by ship or air. As a result there will be a huge saving in transport costs - hence the dramatic increase in demand for the relocation of production facilities to this new hub.
In and around Ballito, the Lifestyle shopping centre has expanded to 30 000sqm while a new shopping centre comprising some 100 000sqm is also planned for the area. In addition, the Ballito business park - with mainly offices, small commercial, light industrial and car showrooms - is well under way with an increasing uptake of space.
In terms of residential property, Greene says the average selling price of homes in the Ballito area is still around R2.3 million. Nearby Zimbali is attracting interest among those seeking permanent residences but mainly in the top end of the market ranging from R5-R40 million, with two properties recently sold by PGP for R10.4 million and R11.75 million - the latter being a home with exceptional sea views.
"It's interesting to note how the demand for homes is moving even further north. Blythedale coastal resort has experienced phenomenal sales which will result in significant growth in the Stanger area. In the Tugela River area, where the huge King Shaka statue is to be built, a 7500ha city with 30km of beachfront is in the planning stages - with the involvement of the local community which owns the land."
Greene says demand in the Ballito area is mainly in the R1 million price range - a sector of the market where there's a shortage of stock. Holiday accommodation in the R2-R7million price bracket is selling, however like so many places in South Africa at present, the supply exceeds the demand. With its major lifestyle appeal, this area of the north coast is this year estimated to achieve growth in property values in the region of eight percent.
In Ballito and the surrounds homes range from one bedroom apartments priced from R950 000 to two to four bedroom apartments on the beach priced from R1.8-R13million. Houses with sea views range from R12-R25million, while at estates - such as Zimbali - where completed units are marketed, prices range from R25 000-R40 000 a square metre. PGP are also currently marketing a luxury five bedroom home in Zimbali at R42 million.
Photos:
1. Zimbali R18,9m: Five bedrooms, five bathrooms, gourmet kitchen, entertainment room, gym, covered patios, heated and cold pool and four garages.
2. Ballito R25m : Caribbean mansion with seven bedrooms and seven bathrooms, an acre of prime land with landscaped gardens and sea views. Includes a gazebo, several entertainment areas, separate guest suite and three staff quarters.
3. Sheffield Beach R25m : Six bedrooms, six bathrooms with free-flowing entertainment areas, two swimming pools and three garages. Situated on the beach with no other houses in sight.
For more information contact Clive Greene at 032 9463430 or send an email.

New KZN airports impact property