Port Elizabeth beachfront flats attract investors

Beachfront properties with sea views in Port Elizabeth are increasingly sought-after now by investors in search of good rental returns, says Nikki Strooh of leading local agency Harcourts Beachfront.

This four-bedroom designer penthouse in Summerstrand is for sale through Harcourts Beachfront for R5,95m. As well as panoramic views, it offers ultra-modern finishes, fittings and appliances throughout and an outstanding location.

“More than half of our buyers in this area currently are investors, and they are competing with each other for well-priced properties, with the result that we now quite often receive multiple offers for a single property,” she says.

“These buyers know that rental demand in the area is high and there are good returns to be made. Monthly rentals start at around R4000 for a one-bedroom beachfront apartment, at around R6000 a month for a two-bedroom apartment within walking distance of the beach, and at R9500 a month for a three-bedroom simplex with a garden.”

Strooh says prices for apartments in the high-rise beachfront buildings in Humewood range from around R500 000 for a one-bedroom unit to around R1,2m for two bedrooms.

“Starting at around R1,1m for a two-bedroom apartment, Summerstrand prices are slightly higher, and the area also offers a range of bigger properties, including a four-bedroom, four-bathroom penthouse that we currently have for sale for R5,95m.”

The majority of the buy-to-let investors, she says, are self-employed individuals in the 35 to 40 year age-group, and many are able to buy second and third properties with cash. Proximity to the beach, sea views and good security are key factors in their choice of units. They also expect the sectional title buildings they invest in to be well-managed.

Strooh says first-time homebuyers, families who would like to move closer to the beach and parents buying student accommodation account for the rest of the buyers in beachfront suburbs, and that the most popular price range is between R1m and R1,3m.

“Top schools and the Nelson Mandela Metropolitan University are the obvious draw cards for such buyers, who have contributed to a sharp uptick since last year in home prices in Summerstrand, Humewood and Walmer.

“And of course beachfront or sea view properties in these areas do come at a premium, due to limited supply, but Port Elizabeth is still SA’s best value-for-money coastal city.”

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