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Modest rebound in KZN house price growth

Cape Town - House price inflation in KwaZulu Natal (KZN) is experiencing a modest rebound, according to Dr Andrew Golding, chief executive of the Pam Golding Group (PGP).

The growth in house prices has increased from 5.4% in the late 2015s to 7.5% in September 2016.

The increase in economic activity and improved employment opportunities generated by developments at the King Shaka Internationial Airport and the Dube TradePort are contributing to the revival in the property market in the region, according to Golding.

To extend the transport network with the TradePort, local authorities are planning a rapid rail system which will connect King Shaka with Durban, Pietermaritzburg and Richards Bay.

"Housing demand appears to be particularly buoyant along the northern KZN coastline, with buyers showing a strong preference for properties within secure estates," said Golding.

There is significant demand in uMhlanga where new secure estates and beachfront complexes are very popular and towards Umdloti, the new security precinct Sibaya is the hotspot in KZN, in his view.

Stands at the new Signature Estate are selling from R4.95m up to R10.5m. Apart from KZN residents a lot of interest is being shown in this development by Johannesburg buyers and even foreign buyers.

"Further fuelling interest from property investors on the North Coast is the increase in economic activity at the Dube TradePort which, together with King Shaka International Airport, forms part of the regional aerotropolis," said Golding.
 
"International travel was significantly bolstered last year by the addition to Durban’s network of four new international airlines, in addition to the daily Emirates flights and regional services to Zimbabwe, Mozambique and Mauritius."

Total international arrivals have risen by 60% since King Shaka opened in 2010 due to direct international flights.

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