Homebuyers Seek Safety First in Mount Edgecombe’s Golf Estates
Category Property News
Once a sugarcane plantation, today Mount Edgecombe is renowned country-wide for its world-class golf-estates that have become one of the most sought-after property types in the local industry. Due to this, the KwaZulu-Natal suburb has transformed into a high-value area that has shown not only positive but strong capital growth within the last year.
According to Lightstone Statistics, from 2010-2015, freehold properties in Mount Edgecombe Country Club Estates 1&2 delivered high returns on investments (ROI), amounting to 26.2 percent.
One of the main factors that led to good ROI’s is the security these estates offer as more home buyers are placing priority on safety and security before they decide on buying a home. Golf estates deliver advanced security on a grand scale as it is fully integrated with high-technology access control, patrols and perimeter fencing and strict monitoring of contractors and visitors entering the premises. These top-end security features fetch a higher price on the market, offering a greater long-term return.
In and around these estates there is a plethora of smaller and just as well run security complexes that offer home buyers access to this lifestyle at more affordable prices.
Centrality and Convenience
The homes here exude luxury, set amid an environment that offers only the best in infrastructural developments and amenities, as expected from an urban society. Adding to this allure, is Mount Edgecombe’s central positioning to key urban centres, including La Lucia - lying just 14 minutes (6 km) away, uMhlanga - 13 minutes (5.3 km) and the King Shaka International Airport - 24 minutes (18.5 km) away.
Mount Edgecombe is served by two major freeways, the N2 and M41 - both provide commute throughout the suburb, its surrounding areas and the rest of the province. However, due to rapid urbanisation and densification, residents and commuters of the area and the neighbouring uMhlanga experience severe traffic congestion at the N2/M41 interchange. This has prompted a major upgrade to the interchange, galvanised by SANRAL and the KZN Department of Transport.
The project, which began in May 2013 and due to be completed this year, will see the construction of a four-level-flow configuration that serves to ease congestion and promote free-flowing traffic in the area. The interchange is imperative for commuters as it connects Phoenix, Mount Edgecombe and uMhlanga with Durban and the North Coast of KZN. The R816 million project will also serve pedestrians, as a 1 km pedestrian bridge will span over the N2, and connect to new footways.
What are investors looking for?
Due to the popularity of golf estates, the rental market is burgeoning and investors are generating a lucrative rental income stream from their buy-to-let investments. The rent on these estates and other security complexes surrounding them can be up to R35 000 per month for a home worth approximately R5 million. This income is further bolstered by capital growth on the total investment return - a return which amounted to roughly 8 percent, with high demand contributing to year on year growth.
Considering that homes on these estates have achieved returns of 26.2 percent, buy-to-sell options are also a smart investment option in the suburb, and investors are targeting the most popular demographics, namely, a young professional class aged between 35-45. Foreign investors are also taking-hold in the suburb, especially swallows who spend 6 months in South Africa and the rest abroad.
As Mount Edgecombe continues to attract those looking for security, the value of properties in the two golf estates and the surrounding security complexes is expected to continue on an upward growth trajectory. This is extremely lucrative for investors and homebuyers who are seeking strong capital growth on long-term investments, with latest infrastructural upgrades only expected to further this growth.
Author: Lew Geffen Sotheby’s International Realty