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Property Talk

Property Talk

Author: Andreas Wassenaar
Date: 2018-02-16

Home goes on sale in Zimbali for R70m

I recently listed a home for R70m in Zimbali Coastal Resort. This is a record listing for Zimbali and most likely for KZN for a residential property. If I were to sell this property it would be more than double the last record sale in Zimbali, which I sold in 2015 for R34m. There are very few estate agents and estate agencies in the country that actively market and sell the very high end of the residential market.

It takes an exceptional effort and unusual skill set to be able to finalize a transaction at the very high end of the market and I am always intrigued by the high ticket transactions we hear about being concluded in the world's leading cities such as New York City, London or Hong Kong.

Properties at this level are therefore often sold on direct and personal recommendations from a trusted source. This particular home in Zimbali is an example of when the finest architect, interior designer and master builder collaborate with a client that specifies only the very best materials available and demands the most exceptional building and interior design with a contractor that is able to execute on that. The result is spectacular and instantly desirable.

There is not a prospective purchaser I know of that would not immediately fall in love with the home. It is not a matter of liking the property - only a matter of being able to afford it. The incredible thing about this property is that it comes with a second beachfront site that can be developed by the new owner as a package deal and provides value of R12m - the last recorded transaction in Zimbali for a similar site in a similar position.

If you are wondering what makes a home worth R70m when other homes in the same suburb are not finding buyers at R35m, then consider why somebody would desire and pay for the finest product in the market for any type of good. Luxury vehicles or sportscars are a good comparison. There is something what economists' call "snob appeal" meaning that people will pay a premium because it adds credibility to them when others can see what they have purchased.

However for a home such as this Zimbali opportunity this is far less of a motivator, given that the property will not be seen by most. Nevertheless the sense of knowing that you own the most expensive home (by far) in Zimbali can be a strong motivator. The compelling driver for motivating somebody to exchange R70m for a home like this however in my mind is the product itself.

The design excellence is high on the list - both architectural design and interior design. Innovation is important as it creates a sense that it is new, fresh and different in many respects from what has been seen before. Execution of the design is then critical and this is where the absolute attention to detail is paramount and has to be flawless. It takes a very special type of contractor to achieve this. All this has to be combined with a AAA-grade location that is very difficult to duplicate. This is exactly what has been achieved at this property, and is why I will sell the home for its full asking price.