This spacious home on the edge of the Sedgefield lagoon is for sale through Pam Golding Properties at R4.99 million.
Amid the worst property trading conditions experienced in South Africa since the interest rate crisis of the late 1990s, the Eastern Cape’s housing market has proven the most stable of all the regions, and is now poised for growth, says Dr Andrew Golding, CE of the Pam Golding Property group.
“Having steered a relatively even course through somewhat turbulent trading conditions – and bearing in mind that the residential property market is largely driven by sentiment and perception – it is apparent that the Eastern Cape rates well in the minds of most home owners, who have also had to contend with the challenges of stringent bank lending criteria and the National Credit Act,” says Dr Golding.
“This region is also seen as a relatively safe environment with property values that are reasonable – with a good chance of escalation for the future. With family lifestyle playing an increasingly important role in determining people’s choices of home buying, the Eastern Cape has excellent educational institutions, a factor which attracts families from South Africa and beyond. Port Elizabeth and the immediate surrounding areas provide ideal facilities for these families, including a healthy variety of activities including water and other sports, wonderful clean beaches, cycling and trails.”
Despite the difficult trading conditions Pam Golding Properties achieved the highest price paid for a residential property in Port Elizabeth last year, at over R10 million – for a five bedroom home set on a 4 000 m2 erf in Walmer. Another R10 million sale was recently concluded for a large property with sea views in Chelsea, on behalf of an overseas investor wishing to extend his business interests in the region. These exceed the previous highest price of R6.2 million – which was achieved in 2006 in Port Elizabeth by PGP.
Andy Collett, regional manager for PGP in the Eastern Cape, Garden Route, Karoo and Kalahari, says: “Generally across the region homes in the R600 000 to R1.6 million price range are attracting the most attention. Exceptions are found in Knysna, where prices average between R2.5 and R3.5 million (without sea views) with exceptional properties sold from R7-R14 million at Simola, Pezula and The Heads; in Plettenberg Bay where prices average from R3-R4 million with a plot on Beachyhead Drive near Robberg sold for R5 million; and also in St Francis Bay, where a house on the canals sold for R6.7 million in December 2009. Although buyers are showing renewed interest they are cautious of over-priced properties as they are very aware of market values.”
Collett says PGP there is a lively surge in demand in East London and sales showed a significant upturn since December, with 20 homes sold for a total R22.3 million in January. This is a significant increase over January 2009 when four units were sold at a total value of R12.8 million.
Another area of interest is in game farms – including those for buffalo breeding - with the company recently achieving prices of around R3 300 a hectare in the Graaff-Reinet area, and stock farms are selling for around R2 500 a hectare in the eastern Karoo regions of Graaff-Reinet, Middelburg and Somerset East.
Says Collett: “The Coega development has finally begun to have positive spinoffs for residential property in the region. Recent confirmation of the massive PetroSA refinery and attendant industries in the area provided the ‘tipping point’ for this with the creation of thousands of new job opportunities, with the added impetus of the recent R40 billion export orders for VWSA.
“There are positive signs that the Eastern Cape house market is recovering. Enquiries are once again being received for leisure properties, mostly priced below R2 million and along the Sunshine Coast from St Francis Bay to Port Alfred, signalling a much improved summer season for the property market. Discerning investors with residential property portfolios in the region have also become active – snapping up lower priced sectional title units mainly in the price range below R1 million – a price sector which yields good returns due to a buoyant rental market.”
He says although much has been made of 2010 and the expected influx of foreigners into the country, PGP is geared for a sustained and focused drive to introduce visitors to the benefits of South Africa and address the questions about buying South African properties.
“We believe the real benefit will be experienced beyond next year as during the event the world will be exposed to the beauty of our country with particular emphasis on the coastal areas. We expect many more people will make the journey to our country after the hype of the event is over,” says Collett.
Call Andy Collett on 041 373 0953 or email andy.collett@pamgolding.co.za.
