The five hottest property markets in South Africa in 2015

gumtreeAccording to Gumtree South Africa’s Property Price Checker, Kwazulu-Natal and other coastal regions of South Africa is becoming a “hot market’ for investors who hope to sell

“Kwazulu-Natal’s coastal property market is booming thanks to the Dube Trade Port and the King Shaka International airport, as well as the large shopping malls and influx of tourists,” says Kevin Bainbridge, Head of Gumtree Property. “Pricing also compares favourably to that of other coastal hot spots, such as Cape Town.”

According to the Property Price Checker, that collates how much interest an area receives from buyers and investors, the five cities receiving the most attention are:

  1. Umhlanga, Kwazulu-Natal

Average Purchase Price: R2,2 million

Average Rental Price: R18,917

The seemingly endless summer weather, the laid-back village atmosphere and the thriving Umhlanga Ridge business node, shopping precinct, New Town Centre and proximity to the airport has seem a sharp spike in interest from buyers and renters alike. “Umhlanga is a little steep for first time buyers, but developers who focus on more affordable complexes and sectional title developments are selling out fast. The market is very attractive.”

  1. Centurion, Gauteng

Average Purchase Price: R1.1 million

Average Rental Price: R7000

Estate agents across the board have said that while the residential property market in Centurion still favors entry-level homes, there has been a spike in the demand for pricier houses in areas such as Wierdapark and Lyttleton of late. “It’s a great spot for young, first-time buyers who opt for the convenience and variety of homes on offer,” says Bainbridge.

  1. Kwazulu-Natal

Average Purchase price: R693, 894

Average Rental price; R3950

Pietermartizburg is a favourite spot for retirees and professionals hoping to leave the bustle of the city behind, while students enjoy the proximity to their places of study. “Gated complexes and smaller homes are in real demand, and owners can expect a steady income from rent if they chose to rent out their homes.”

  1. Queensburgh, Kwazulu-Natal

Average Purchase Price: R900,483

Average Rental Price: R5467

The younger generation are upgrading from their homes in Chatsworth and surrounding areas to snap up homes in Queensburgh. “Fair pricing and close proximity to the M7 and M13 arterial routes are drawing in higher income buyers. Numerous new developments are drawing new residents in large numbers, which makes Queensburgh a very attractive market right now.”

  1. Hout Bay, Western Cape

Average Purchase Price: R2,6 million

Average Rental Price: R17,000

Houses in the Republic of Hout Bay, as its affectionately called, regularly sells properties well over the five million rand mark. “In addition to being a rather beautiful part of the Western Cape, the area boasts numerous restaurants, excellent schools (local and international) and great beaches,” says Bainbridge. “There is still some vacant land being developed, but as space runs out, prices will continue to shoot up – the time to invest is now.”

About Gumtree

Gumtree is South Africa’s largest classifieds site and most trafficked site for rentals in the country. The site recently launched a professional property tool for estate agents, The Gumtree ProTool.

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