select
|

'Incredible' bargains in residential property obtainable at Jeffreys Bay and nearby villages

These days many of those who follow the ups and downs of residential property in the Eastern Cape do not remember that the small coastal holiday village of Jeffreys Bay, 80 km west of Port Elizabeth and famous for its ‘perfect wave’ (which has made it one of the top ten surfing venues in the world and created a whole culture of surfing visible throughout the town) had a property boom in the 2004 to 2009 era.

This golden era was brought to an end by the 2009-2011 recession, which, as elsewhere, saw second homes flooding onto the market and price drops of 30 to 50%.  Since then estate agents in the town have had very high stock levels (the Rawson Property Group has 200 homes on their list) and very low sales – and it has to be remembered that even today there are some 70 agents serving this 100 km stretch of coastline from Van Staden’s Bridge to Storms River eking out livings on low turnovers.  Last month only 25 transfers took place and a fairly high percentage of these were repossessed and/or inherited properties.

However, Billy van Loggerenberg, co-franchisee with Wikus van Rensburg for the Rawson Property Group in this area, reports that in the last few months, for the first time in a long while, he has seen December and January holidaymakers coming back with enquiries and new enquiries surfacing regularly – at the rate of five or six a week.  This, he says, is a big improvement.

One reason for this may be that it is now accepted that a new nuclear power station will be built 20 km west of Jeffreys Bay at Oyster Bay (currently 50 km by road via Humansdorp, but a new 20 km road will be constructed) and in five to ten years’ time a workforce of some 3,000 people including 800 engineers will, it is said, be employed on the site.

In today’s market, however, Jeffreys Bay properties can still be bought at very low prices.  Houses that sold previously at R5 million to R6 million are now selling at around R3 million and a luxury beachfront mansion with six or seven bedrooms priced at R11 million was not so long ago sold for R7 million.

Even so, says van Loggerenberg, many of today’s buyers are completely unrealistic in their expectations, hoping, for example, to pay R800,000 or less for a three bedroom home already reduced to R1 million from R1,3 million.  Homes of this kind, he says, probably represent the best buys in Jeffreys Bay today.

On the rental front, landlords in the absence of buyers can now charge R3,000 to R8,000 per month for a three bedroom home, the typical rental probably being around R4,000 per month.  This, says van Loggerenberg, is half what would be charged in Port Elizabeth today where there are very few middle class homes available for rent at below R6,000 per month and many charge R12,000 to R15,000 per month.

Looking ahead, van Loggerenberg says that those farsighted investors who aim to get into the property market when prices are low should now be having a good look at Jeffreys Bay.  The inevitable eventual upturn will probably become evident from mid-2015 onwards and this, he says, will result in slow but steady price increases.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK