East London house prices top R9 million mark

Record house prices are being achieved for homes sold by Pam Golding Properties in East London in the Eastern Cape, with three of their last four high end sales transactions considerably exceeding the previous record price of R7.8 million for the area.

This six-bedroom home on Nahoon River in East London was sold for Pam Golding Properties for R8.45 million, which is one of the highest house prices achieved in East London.
“During the year (2014) to date, we have sold four top end properties over the R6 million mark, fetching prices of R9.2 million, R8.45 million, R8.2 million and R6.4 million. Three of these are significantly higher than the previous highest price for the area, which was a home in Edgewater Estate which Pam Golding Properties also sold, in 2010,” says Hanlie Bassingthwaighte, Pam Golding Properties area principal in East London.
“The four top end properties are situated on the Nahoon River and interestingly, the buyers are all successful entrepreneurs – two of whom have relocated from Gauteng. There is keen interest in high end properties, with Nahoon and Nahoon Mouth still the preferred location in East London because of the proximity to the beach and the city.”
She says the residential property market in East London is buoyant across all price ranges, with Beacon Bay and Gonubie currently experiencing the most activity. “This year we have experienced heightened interest in the residential property market, with show days very busy and even up to 20 families visiting stock which becomes available, and we have certainly concluded more deals this year than last year.”
During the 12 months since 1 November 2013, 152 properties changed hands in Beacon Bay at a total value of R181 million. Of these, 22 percent sold for over R2 million, with the highest price just under R4 million; 53.5 percent achieved prices between R1 million and R2 million, while 23 percent sold for less than R1 million.
Statistics for transferred properties were similar in Gonubie, where a total of 214 homes sold during this period at a total value of R230 million. Ten percent of these sold for over R2 million each – with a top price of R5.2 million; 63 percent sold between R1 million and R2 million, and 25 percent fetched prices under R1 million.

Adds Bassingthwaighte: “Stock shortages are evident across the board, but particularly in the price band below R2 million. Sellers are also more realistic about the values of their properties and well priced homes can be sold in a very short time. For example a property in Avalon Road in Beacon Bay sold within two days of listing, at R2.8 million - the highest price ever achieved in the street.
“However, although there is a stock shortage, some buyers are inhibited by bank valuations and their own affordability. First time buyers enjoy an advantage as qualified buyers are able to attract 100 percent bonds from the banks, whereas the self-employed are still at a disadvantage, having to prove longstanding credibility and produce larger deposits. We’re also seeing an increase in the developments market, with developers showing renewed interest in the market.”

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