Lucrative land parcels in the heart of booming Umhlanga Ridge New Town Centre, with a combined area of nearly 33 000m² and development rights that include mixed use commercial and residential allowing for the construction of more than 920 homes, go under the hammer in Johannesburg this week.
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High Street Auctions Director Greg Dart says with such bullish sentiment in the property market’s recovery since the election and the formation of the Government of National Unity, scores of developers have registered interest in bidding for 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.
“The purpose of this zone is to accommodate a wide range of recreational, tourism, residential, shopping, and business or commercial related activities, in such a way that the uses contribute towards the creation of a dynamic, harmonious and well-balanced new town centre of the highest aesthetic, landscaping and urban design quality.
“In terms of the development framework for the area, over a 20-year period total development of 633 000m² is envisioned, much of which has already been built.”
Hot property
High Street Auctions Associate Director Themba Mathebula, who hosted site visits for numerous development companies last week, says Portion 191, especially, has elicited massive interest.
“The 7 072m² lot comprises the entire block between Umhlanga Ridge Boulevard and Summer Way Lane.
“It allows for a mixed-use development as defined by Business 2 zoning parameters, as well as 274 residential units. The eventual envisaged bulk for this site is 15 655m².”
Mathebula says this site’s commercial development potential within a mixed-use framework, has made it an exceedingly attractive proposition for potential buyers.
Tourist hotspot
Dart says 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 Lightstone’s average residential property transaction data for the area.
“Between April and June this year, Lightstone notes 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 staggering 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.”
Across the province
Dart says High Street’s July auction contains a portfolio of significant KZN investment opportunities.
“Noteworthy is the newly-revamped ASTRON 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.”
Dart says other KZN investment properties under the hammer on 25 July, 2024, include:
- 24 Residential units and two retail units in Church Street, Pietermaritzburg; and
- The A-Grade Montrose Office Park on Montrose Park Boulevard – also in Pietermaritzburg.
High Street’s July auction event starts at noon on the 25th with guest speaker Denise Mhlanga, Senior Investor and Public Relations Professional at Articulate Partners, who will address the subject of real estate through the eyes of business journalists.
Dart says the auction will be held in the Bryanston Room and Marquee, Bryanston Country Club, 63 Bryanston Drive, Bryanston.
“For bidders who can’t attend the auction in person, download the High Street Auctions app free from the App Store or Google Play.
“You can register for the auction on the app, watch the auction live and bid on the app in real time.”
For more information on all the properties on auction on 25 July, download the High Street app or visit www.highstreetauctions.com