Prime land parcels in the vibrant Umhlanga Ridge New Town Centre, covering nearly 33,000m² and offering mixed-use commercial and residential development rights for over 920 homes, will be auctioned next week.
High Street Auctions Director Greg Dart noted that the bullish sentiment in the property market's recovery post-election and the formation of the Government of National Unity has led to a surge of interest from developers eager to bid on these valuable lots.
“Greenfields land in this fast-developing node around the Gateway Shopping Centre is finite, and with the property sector rebound already starting, developers who want a piece of this exclusive suburb should move now before the pendulum swings heavily back to a seller’s market.
“The land cluster High Street Auctions will knock down comprises six individual sites; four of which have development rights in terms of Special Zone 11: Umhlanga Ridge New Town Centre, Dart said.
The purpose of this zone is to support a diverse array of recreational, tourism, residential, shopping, and commercial activities. These uses are intended to foster a vibrant, harmonious, and well-balanced new town center characterized by exceptional aesthetics, landscaping, and urban design quality.
According to the Development Framework for the area, a total development of 633,000m² is planned over a 20-year period, with a significant portion already constructed.
High Street Auctions Associate Director Themba Mathebula noted significant interest in Portion 191.
This 7,072m² lot spans the entire block between Umhlanga Ridge Boulevard and Summer Way Lane and is zoned for mixed-use development under Business 2 parameters, allowing for 274 residential units. The total planned development for the site is 15,655m².
Mathebula said that the site's commercial development potential within a mixed-use framework has made it an exceptionally attractive proposition for potential buyers.
Dart said the other development land parcels – Portions 130, 139 and 153 – are earmarked for substantial builds of cluster housing.
“The combined number of units that could potentially be built on Portions 130 and 139 is 310, while Portion 153 provide for 345.
“Sales on this scale would prove lucrative, given Lighstone’s average residential property transaction data for the area."
Between April and June this year, Lightstone noted a total of 91 residential transfers. The total value of these was R134 612 906, with the average price per sale noted as R1 479 262.
For the 12 months from July 2023 to June, 402 transfers were registered for a total of R530 622 447. The annual price per sale average was a little lower, at R1 319 956.
"The Umhlanga area of KZN is one of only a few in the province that has proved resilient to the downswing that has depressed the property market across much of the country in recent years.
"Given how active this market has remained despite myriad challenges, the prospects are outstanding for new developments in planning now.”
Dart said High Street’s July auction contains a portfolio of significant KZN investment opportunities. Noteworthy is the newly revamped Aston site on Chris Hani Road in the Durban North suburb of Park Hill.
Already occupied by Blue-Chip tenants and due to its high traffic volume location, the projected net annual income from this petrol station is approximately R6.4 million.
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