select
|

East London’s housing market at full throttle

Activity in East London’s housing market has swung into top gear according to Hanlie Bassingthwaighte, area principal for Pam Golding Properties.


This modern, four bedroom, three bathroom house in Nahoon, East London, is priced at R8.9 million through Pam Golding Properties. With scenic views of the Nahoon River, the property includes an open plan gourmet kitchen, appealing entertainment areas, swimming pool and staff accommodation.

“In terms of demand, the market has fully recovered and we are now selling as many houses across most suburbs as we did just prior to the national market slump in 2008. A key factor which is fuelling the current market is the significant increase in property acquisitions by black buyers. At present, 59 percent of our sales are to black buyers, compared with 40 percent in 2014.

“With house prices having remained relatively flat in real terms (taking into account inflation) through the economic recession, what we have seen in the marketplace in general is the number of successfully concluded transactions increase in tandem with the growing demand. This is to the extent that we now have a very active market with a shortage of reasonably priced stock in all price brackets, but particularly in the R1.5 million price range.”

Testament to the increasingly buoyant housing market, in August 2015 Pam Golding Properties achieved its highest month’s turnover to date with sales of just over R60 million. September and October months have also been very busy, says Bassingthwaighte.


This five bedroom, three bathroom home set on an erf of 3300sqm in Nahoon Valley was recently sold by Pam Golding Properties East London for R6.8 million.


“We’ve also experienced a significant increase in the top end of the market. In 2014 only four homes in total sold above the R5 million mark in East London, compared with nine for 2015 to date – five of which sold through Pam Golding Properties (PGP).”

Located in areas such as Nahoon, Nahoon Mouth, Nahoon Valley, Abbotsford and Bunkers Hill, the PGP luxury sales ranged from R5.95 million to R6.5million, R6.95 million, R8.9 million and R9.4 million.

Across all areas the market is driven by locals acquiring property for primary residential use – including some former Eastern Cape residents who have returned to their roots, such as a family relocating back home from Singapore after a 15 year stint overseas.

Adds Bassingthwaighte: “There’s also huge value for money available in the city’s housing market, which is a key attraction for first time and family buyers, with many bargains to be had in areas such as Cambridge, Amalinda and Gonubie – where you can still buy a good size three bedroom home for under R1 million.”

In Gonubie, a coastal village only 15km from East London, properties are considerably inexpensive when compared to the city. An independent community comprising some 3 500 houses and with a good primary school and high school as well as a golf club, houses start from below R1 million for small residences or even a three bedroom apartment.

“In terms of sales activity, Gonubie is a fast-paced area which in 2013 had already surpassed the volume of sales concluded during the housing boom in 2006/07, and emphatically improved this performance. In 2013, 246 houses changed hands in the area versus 226 in 2006. Currently the average house price in Gonubie is R1.2 million, while more upmarket homes range up to the R8 million’s.


Priced at R8.9 million through Pam Golding Properties, this four bedroom (all en suite) home in Beacon Bay, East London offers a lifestyle of tranquillity and privacy in an idyllic setting, verging on the Quenera River which is easily accessed by decked walkways. Expansive entertainment areas and bedrooms flow onto the patio, while two luxurious self-contained apartments complete the picture.

“In addition, we recently sold a fully tenanted retail property, well situated on the main road in Gonubie, for R8.725 million,” says Bassingthwaighte.

In Beacon Bay, where sales in the R1.8 million to R2 million price bracket are most active, more upmarket properties achieve prices of R1.45 million for a three bedroom penthouse, or in the region of R2.8 million for a spacious modern home, usually on large grounds – the latter being in particular demand among black buyers.

Lifestyle properties are also selling, with smallholdings ranging in size from 6.4ha to 18ha and 36.6ha selling through PGP from R1.35 million to R3.5 million in areas such as Rainbow Valley and East Coast Resort, on the outskirts of East London. Buyers are seeking a more tranquil way of life with wide open spaces and perhaps the opportunity to keep a few horses.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
        
    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