Prominent developer and builder, Paul Tedder shares his insights on the trends shaping property investments on the South Coast:
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The year began with cautious optimism, as investments have seen an uptick, albeit selectively. The demand for lifestyle-focused properties continues to surge, particularly in coastal areas where remote work is still a viable option. These outlying regions offer families an improved quality of life, characterised by reduced traffic, proximity to nature, and a more family-oriented atmosphere.
Tedder emphasises the shift toward lifestyle and sustainable investments: "Umdoni Point Coastal Estate is setting a new benchmark for upscale living on the South Coast. With property values rising by 20-40% since its inception in 2018, it reflects the growing desire for secure, high-quality living spaces." The estate’s first home, completed in 2021, has seen its resale value skyrocket from R2.8m to R4.3m in just three years, highlighting its investment potential.
This trend towards sustainable living is also evident in the architectural choices being made. As developments increasingly prioritise eco-friendliness, the use of natural stones and locally sourced building materials is on the rise. Tedder notes, “The minimalist architectural look not only appeals to modern sensibilities but also promotes maintenance-free structures that stand the test of time.”
Secure living trends
Another significant trend is the increasing demand for gated communities. South Africans are gravitating toward these secure environments as they offer a safer living experience. Properties within gated communities are witnessing higher value increases, making them attractive long-term investments. "The value proposition of gated communities is undeniable," Tedder asserts. "They offer peace of mind and a sense of community that many buyers now prioritise."
The migration from the North Coast to the South Coast is also noteworthy. Overdevelopment and skyrocketing land prices in the North Coast have led many potential buyers to seek refuge in the more affordable and serene South Coast, this increased popularity brings challenges, including rising crime rates and higher levies.
"Buyers are looking for an escape," Tedder explains. "The North Coast has become overcrowded, and crime rates have risen, defeating the purpose of a coastal retreat. As a result, many are turning southward for a more tranquil lifestyle."
In addition, buyers are now even more willing to invest more for the right balance of nature and convenience. Tedder points out, “Residents want top-tier amenities, including state-of-the-art sports facilities, health services, and restaurants within a secure environment, in close vicinity. They aren’t just looking for a place to live; they are seeking a lifestyle that prioritises safety, community, and quality of life.”
Reflecting on these trends, Tedder notes, "Most of these trends are not new; they have been prevalent globally since Covid. There’s been a post-pandemic shift towards quality over quantity, with a growing demand for sustainability and self-sustaining solutions." This shift has also contributed to the rise in small-holding property investments, as buyers seek more land and independence.
Ultimately, the role of developers is evolving. It is essential for them to understand the market's changing needs and deliver solutions that meet these demands without compromising affordability. As we navigate these trends, the future of property investment in South Africa, particularly in the South Coast, appears bright, driven by a commitment to quality living and sustainable practices.
