Rentals on the Hibiscus Coast are performing well
The Hibiscus Coast - comprising the suburbs of Hibberdene, Port Shepstone, Shelly Beach, Margate, Southbroom and Port Edward is known for its blue flag beaches, warm water, many outdoor adventures and lush vegetation. It is no wonder the area is often referred to as the 'Beach Holiday Mecca' of KZN.
Joleen Giraudeau, Rental and Operations Manager of the Natal South Coast, says the Hibiscus Coast covers approximately 77km travelling along the coast line and slightly inland of about 10km.
"There are several towns and CBD's located here and the entire residential area holds a high demand for rentals - from residential, commercial retail, commercial light industrial to holiday letting.
There is definitely a higher demand than stock level, but as the economy is under strain, people owning a second home for holiday letting are increasingly turning to permanent rentals to assist in covering their bond and other expenses related to their properties.
Owners are looking to earn an income whether it is by providing short term or long term rentals - whichever proves to be more lucrative and consistent.
A three bedroom and two bathroom home in a popular holiday destination for instance can fetch between R1 800 to R2 200 per day, but if you request a monthly rental on the same property you will fetch around R6 500 to R8 000 per month depending on the finishes.
It is however important to keep the length of the holiday accommodation season in mind. Generally the popular times in peak season only starts from around the 16th of December to the 5th of January."
Giraudeau adds the average price ranges for rentals in holiday areas start at around R2 500 per month for a one bedroom flat in Hibberdene to R18 000 for a four bedroom house in Umtentweni.
The highest demand is for two and three bedroom, pet friendly apartments and complexes in the R5 000 to R9 000 per month price bracket throughout the areas mentioned and the demand for free standing homes priced between R8 000 to R10 000 per month is also high.
"Lately the client demands and habits have proven that the rentals in the large CBD areas are more affordable than the listings in the exclusive residential areas.
People want to be near a CBD for work purposes, but don't want to live in them as they are looking for a more relaxed and safer environment. The conditions of the homes also vary considerably between the various income bracket areas."
Giraudeau concludes that from an investor perspective, buying holiday properties in the main residential destinations on the Hibiscus Coast is definitely a good investment.
"The main CBD areas in peak season are very overcrowded and have a security element that some are wary of, hence why holiday makers are resorting to listings in residential areas for ease of access to the CBD - but with the peace and quiet that comes with a residential area.
Holiday rentals in the areas of Margate, Shelly Beach, South Broom, Uvongo and Ramsgate are always in high demand and depending on the area and category of rental accommodation these rentals can be booked out from six to eight months in advance of the December holidays".
Picture attached
This four bedroom and three bathroom townhouse in Uvongo is to let for R11 000 per month.
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10 Oct 2019
Author Tanya Van Buuren Botma