Pam Golding Properties in the Eastern Cape hubs of Port Elizabeth and East London reports escalating residential property sales across all price ranges, since June this year. Stands are also selling in both cities, suggesting a demand for new homes. While the housing market here underperformed relative to the national market during much of the past decade, it has enjoyed stronger growth since late 2017, says Pam Golding Properties senior research analyst Sandra Gordon.
According to Pam Golding Properties area principal in East London Sean Coetzee, people are spending more time at home since the onset of the Covid-19 pandemic, which sees them selling or upscaling to larger properties or moving to more expensive areas closer to schools, beaches and other amenities. He says investors are also buying property as they perceive a better return on their investment in this asset class. Top-end sales are seen in the Nahoon Mouth, Glen Gariff and Beacon Bay areas where a home recently sold for R6,35m.
Properties up to the R2m mark are also in high demand with popular areas such as Vincent and Beacon Bay fetching prices between R1,6m to R2,2m. People buying in East London are mostly from the Eastern Cape areas such as King William’s Town and Mthatha, motivated by work transfers or seeking better schooling, says Coetzee. “Many first-time buyers who were renting are now buying because the low interest rate makes it more affordable.”
Secure, lock-up-and-go properties remain in demand with sectional title sales increasing at prices ranging between R1,1m and R1,3m for a two-bedroom townhouse in a cluster development. Justin Kreusch, an area principal for Pam Golding Properties in PE says family homes are in demand here with mostly locals either trading up or scaling down, and a small percentage of professionals relocating from other major centres.
“We’ve seen unprecedented activity in areas such as Richmond Hill, Walmer, Summerstrand, Lorraine, Glendinningvale and Mount Croix,” he says. “Sales at the top end of the market include a 520m2, four-bedroom home in Little Walmer Golf Estate for just under R7m.” Port Elizabeth hasn’t experienced the expected countrywide buyers’ market post-Covid-19, instead, he says, well-priced properties aren’t staying on the market for more than a few weeks. “A property we thought would fetch about R2,1m eight weeks ago, was priced at R2,4m and sold at full asking price, a month later,” he says.