Durban property boasts good return on investment
Durban businessman Vivian Reddy says some areas in Durban, particularly Umhlanga, have proven to be investment-worthy.
Reddy and business partner, Rob Alexander are behind the property development project Oceans Umhlanga which obliterated the South African record for sales in one day yesterday at the Durban International Convention Centre.
"In four hours we sold R1.55-billion which is beyond our wildest expectations," he said.
He says some overseas buyers bought units of the mixed-use development as investment property.
"In the Umhlanga area, your properties escalate largely. Every five years your properties double in value. People are buying R10-million units knowing that in five years time it will be worth R20-million. That's capital appreciation. In the interim they could rent the units," he said.
Reddy also says South Africans who have emigrated to countries such as Australia and New Zealand were among the buyers.
"They are saying they want to come back and retire in South Africa because it's too expensive to [live abroad] and its affordability," he said.
(File photo)