Tongaat popularity grows with new Airport

Posted On Wednesday, 03 October 2007 02:00 Published by Commercial Property News
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Property prices in Tongaat, a residential suburb on the northerly outskirts of Durban, are poised for massive growth once the construction of King Shaka International Airport is completed in 2009

That’s according to Gan Reddy, principal of the Tongaat branch of Sky Properties, the official black empowerment partner of Acutts.  Commenting on current market trends in the traditionally Indian area, Reddy says positive economic and industrial changes, accompanied by rising market activity along KwaZulu-Natal’s “Sugar Coast” are indicative of the potential for upliftment of the area by the international airport.

Situated between Tongaat and La Mercy, King Shaka International Airport will initially have the capacity to facilitate four million passengers a year while also serving as a cargo airport with concessionary retail outlets.

“The airport will allow for easy access to the area, which will stimulate property growth while simultaneously being a catalyst for economic development and job creation,” he says. 

Tongaat, which was originally established to accommodate Indian workers from the local sugar industry, is experiencing a change in buyer profile, he reports further.  While traditionally the bulk of property market activity came from residents, investors and holidaymakers are now making their presence felt as they pursue beachfront properties.

“In recent years, our beaches have become increasingly popular among holiday makers and this along, with growing investor interest as the airport nears completion, leads us to believe that Tongaat property prices are about to turn sharply upwards, after enjoying a stable last 12 months,” he says.

According to Reddy, properties under R500 000 are moving quickly.  He adds that in areas such as Belvidere, which consists largely of properties previously owned by the local council, two bedroom flats at around R180 000 offer good value for money, as do three bedroom houses on 400 square meter stands for R400 000.  He pegs the middle market at between R600 000 and R1 million, which in most instances buys a three bedroom, freestanding house.

The area is reeling under a “severe” shortage of both land suited for sectional title development and units of this nature, which start from R450 000 in central Tongaat.

Seven kilometres from Tongaat’s CBD, the suburb of Sea Tide, which borders on to the beach, has become a major hot spot.  This, he says, is despite its comparatively small stands and because of the fact that most homes here enjoy sea views and easy beach access.  Three bedroom, single bathroom houses are selling from around R800 000.

Affluent Westbrook, which is home to some of Tongaat’s most luxurious properties, is achieving top end prices of close to R5 million.  Demand is high for sectional title units, too, owing to its close proximity to the beach.  “Tongaat used to have a predominantly Indian community and while this is still the case, the beachfront suburbs are becoming increasingly popular among white people from inland,” he notes. 

Anticipating a period of major property price growth along this part of Kwazulu-Natal’s coast line in the next two years, Reddy says it will follow in the wake of province’s overall property upswing, which kicked in at the end of 2006.


Publisher: Acutts Estate Agents
Source: Sky Properties Tongaat

Last modified on Thursday, 30 May 2013 19:15

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