Margate, Pennington and Scottburgh are among the KZN South Coast locations offering good value right now.

Joe Foxcroft, principal of Homenet Hibiscus in Margate, says properties priced below R1,2m are currently in highest demand and that about 40% of sales on his books are investment purchases, many made with cash.

The flourishing rental market in Margate is boosting investor confidence, with rentals currently averaging around R4,500pm for a three-bedroom house, depending on the view and locality.

In Pennington, property sales have tapered off somewhat but investor confidence is rallying, says local Homenet principal Des Robb. Properties under R1m are moving well again and two new developments are poised to give the area a shot in the arm.

Pen Valley Estates is complete and already has a clubhouse up and running. Twelve homes have also been built and the nine-hole golf course is already open to golf fundis. Stands measuring 600sqm are selling for R450k and fully developed stands for R1,6m.

The other development is Rovadale at which only seven stands measuring between 600 and 900sqm have been made available. Prices start at R350k and all services are already in place as well as an electric fence and gate.

In Scottburgh, holiday rentals have decreased but permanent rentals have increased, says Rudy Naiker, principal of Homenet Scottburgh.

Homes are letting for between R3,500 and R4,500 a month and those priced at less than R1m are also selling relatively well.

www.property24.co.za

02/01/2009