Luxury Umhlanga Rocks flat goes to auction with R576 000 municipal debt

On 2 November, ABSA’s Sale in Execution division listed a luxury flat in Umhlanga Rocks.

The flat in a mixed-use development on the coveted Lagoon Drive goes to auction in February 2027, where it will sell if it reaches its R4.1 million reserve.

Owner owes more than R500 000 in municipal rates

The other half appear to be struggling as more luxury listings hit the market, and not in the way a homeowner wants.

ABSA’s Sale in Execution division’s most recent listing is for a 2-bedroom flat in Pearls of Umhlanga. The flat has been forced into auction.

The listing shows the owner owes R576 014 in rates and taxes debt, the equivalent of 5 years of non-payment, excluding interest.

2-bedroom flats in the same building are on the market for R5 million, so any buyer who can bid on the property will get a bargain, as the reserve on the 83-square-metre flat is only R4.1 million.

The owner purchased the flat in 2020 for R2 185 000, according to the South African Deeds Registry.

This listing shows a pattern of South Africans falling on hard times.

The flat will go to auction on 2 February 2027, where it will sell if it surpasses the R4.1 million reserve.

The auction will take place at the Sheriff’s Office located at 82 Trevenen Road, Lotusville, Verulam.

Other Luxury Properties head to auction

In Steyn City, arguably one of Gauteng’s most luxurious developments, a flat went to auction after the owner failed to pay R158 000 worth of rates, taxes, and levies.

On the Dolphin Coast, the bank is selling a 2-bedroom flat for R2.1 million.

In Bryanston, an owner with a 4-bedroom family home with staff quarters has racked up R800 000 in municipal rates debt.

That home sold for an undisclosed amount in 2020, when it was registered with the North Gauteng Deeds Registry.

In that year, the average sale price on the street was R3.3 million.

But as more homeowners default and become distressed, this worrying trend will only continue.