With a high level of occupation and activity throughout the year, the KwaZulu-Natal lower south coast area of Margate is no longer a seasonal holiday town, and residential property in the area continues to be in high demand for both permanent and leisure use, says Dina Porteous, area principal for Pam Golding Properties.

"For investors, this opens up sound opportunities for investment in tourism properties, ie properties that lend themselves to be let to holidaymakers. All indications are that South Africa and the KZN south coast will be hot spots for tourism in the next 10 years, and we are confident that the south coast, in particular the areas between Shelly Beach and Southbroom, will remain in high demand, with major attractions being the pristine beaches, excellent weather, golf courses and shopping facilities," she says. "In addition, ever rising fuel costs will boost the demand for beach holidays closer to home, and the south coast is easily accessible to the rest of KZN and Gauteng - where there is a rapidly increasing middle class market," she says.

Margate Airport has recently received National status, and another regional shopping centre opens in early November.  The demand from national retail and corporate tenants looking for space is yet another indication that they are echoing the same expectations. Porteous says while other coastal property prices have escalated beyond the average investor's comfort zone, the KZN south coast still offers affordability. For properties priced from R800 000 you can still walk from your property onto the beach, while the top end of the market is just touching on R12 000 per square metre, which will offer you a prime beachfront location.

"It is extremely encouraging that we are currently receiving a great deal of enquiries from developers seeking land to develop, and what we believe the area needs are those who will develop resort type developments that offer rental accommodation.  The trend today is for families with children to look for holiday destinations where the youngsters can be entertained and kept busy.  This is why resorts in the Drakensberg are so well occupied, however there are very few of these types of resorts on the coast. Hotel occupancy figures for the three largest hotels on the south coast are exceptional, and when you look at what they have to offer, they fit right into that profile," says Porteous.

"The question is how can one capitalise on this trend - we believe by investing in coastal property now, as the demand for accommodation will boost prices even further. Ensure you work with a reputable agent and organisation to ensure you have all the relevant facts and figures - and criteria for selecting a good tourism property with investment potential -
before you purchase.

"Today's tourism visitors are discerning, with more sophisticated needs, and are no longer satisfied having to pay market related prices and then spend a holiday on an inferior, hollowed out mattress and an unwelcoming smell of damp and worse still perhaps a few dead cockroaches!  Pam Golding Properties Margate took the lead last year to have its self-catering accommodation graded by the Tourism Council, fully complying with their grading criteria. Recently, Laguna La Crete and Ramsgate Palms have just been awarded their star grading, offering clients a superior service with graded apartments. Not only are owners benefiting through increased occupation levels, the property values are also showing sound returns on investment," she says.

"Our Leisure Letting division has filled a huge gap for investors, and more and more of our buyers are changing from the traditional buy to let market to tourism properties. A sound option would be to consider buying an apartment off plan in order to enter the market. Beachfront properties are an absolute winner, providing you follow the criteria that would satisfy consumer demands.  Other plus factors are access to shopping centres and activities for youngsters of all ages, and during non-school holidays, security and amenities. Larger complexes also provide opportunities for tourism or corporate group bookings, and many conferences return year after year," says Porteous.

PGP Margate is currently marketing two developments in Margate, which are ideal as desirable tourism investment properties - Colonial Sands and La Mer, with two, three and four bedroom apartments priced between R1.3 million and R4.8 million including VAT.  Occupation for these apartments is late next year (2006), giving the investment an opportunity to appreciate in value as the demand for accommodation increases.  The KZN south coast is an area in which investors in property have more than one option to make it work financially.

For further information contact PGP Margate on 039 3173003.

Ends

Issued by Gaye de Villiers

Tel: 021 6837788 or 083 325 1939

On behalf of Pam Golding Properties