select
|

East London is ‘just the ticket’ for many young buyers

The property market in East London has just about everything a first-time buyer could wish for – affordability, lifestyle amenities in abundance and many new developments to choose from.

 
This immaculate three-bedroom, three-bathroom home in Nahoon is for sale through Chas Everitt International for R3,2m. It also features a large entertainment area leading to the pool, access to the river and a separate one-bedroom flat
.

And, says Clinton Krouse, owner of the Chas Everitt International franchise in East London, that fact has been very clearly reflected in a steady volume of sales over the past 12 months, even though the fortunes of the local market are still largely tied to those of the manufacturing sector, which experienced a slowdown in 2015.

“Affordability is a big draw card for East London, even though people here don’t usually earn as much as in bigger cities. The latest Absa Housing review shows, for example, that even though the average house price here rose by more than 24% last year, it is still only the second highest among SA’s major metros at R1,38m - with Port Elizabeth being the lowest at R1,04m.

The Absa figures also show that at the end of 2015, the average price of a small home in East London was R750 000, that of a medium-size home was R1,3m and that of a large home was R1,9m. By contrast, the average price of a small home in Cape Town, the most expensive metro, was R1,22m, and those for medium and large houses were R1,73m and R2,43m respectively, so it is no surprise that East London is an increasingly popular choice for young families and retirees, he says.

“This city also enjoys a laid-back, seaside lifestyle and we find that many people who were born and raised here but left to work in other cities are actually now returning in search of a less hectic schedule. These buyers generally opt for suburbs like Beacon Bay, Gonubie, Dorchester Heights and Nahoon Valley Park, all of which offer very good value-for-money homes and a wholesome environment in which to raise children.”

Of course it doesn’t hurt that the city is home to several of SA’s most highly-rated schools, and also boasts many great shopping, entertainment and sports venues, as well as both river and beach “playgrounds”, but even more important is the fact that the local economy is becoming more complex and starting to offer a more diverse range of job and business opportunities.

Meanwhile, Krouse says, the East London market, like that of many SA cities, is being boosted by rapid urbanisation. “It is the main catchment area for people relocating from the rural areas of the Eastern Cape and we are clearly seeing a changing demographic with more young people coming here to find work, get settled and buy their first homes.

“And thirdly, our market has benefited over the past year from a strong upgrading trend, thanks to rising prices at the lower end that have made it possible for many existing owners to sell at a profit and move up the property ladder. This may, however, become more subdued this year as household budgets come under pressure and new developments coming to market slow the pace of price increases.”

Indeed, he says, developers are very active in East London at the moment and are delivering sorely-needed new stock of all types and in all price ranges, but especially in the affordable housing sector.

“We are currently marketing a new development in Greenfields, that offers three-bedroom, two-bathroom townhouses of various sizes at prices from around R850 000, while other new projects now on offer include Gonubie Palms, Calypso Gardens, Umlele Heights, The Village in Kidds Beach, Cypraea Sands Estate and  Balugha Estates.”

 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 25 May 2018
      Reliable public transport systems moving a mass of commuters to and from work, keep a city’s economy moving. Not only do they have a positive impact on economic growth, successful rail links also influence property values.
    • 25 May 2018
      The live, play and visit environment that Centurion Residential Estate & Country Club offers continues to attract buyers looking for a very specific lifestyle and ambiance.
    • 25 May 2018
      As expected, the Monetary Policy Committee kept the repo rate stable, with analysts and market commentators ahead of yesterday's announcement (24 May 2018) pointing to a more hawkish stance amid a weaker rand, somewhat less stable global environment, and an eye on the inflation outlook – coupled with the increase in VAT and sizeable hike in the price of fue
    • 24 May 2018
      Most real estate professionals agree that 2017 was one the toughest years to date; an eminently challenging 12 months that subdued even the strongest markets - including the country’s economic powerhouse of Sandton.
    • 24 May 2018
      These are uncertain and challenging times for the real estate industry, but the non-profit organisation Rebosa is fighting for their interests and finding pragmatic solutions to industry issues such as the urgent need to fast-track transformation says Richard Gray, Rebosa chairman.
    • 24 May 2018
      The decision to invest in property isn’t one that’s taken lightly, or dealt with flippantly. The same should ring true when deciding on an estate agent partner to handle the letting out of your property.
    • 23 May 2018
      Homeowners who are thinking of selling and “trading up” to a bigger or a better home had better be quick now if they want to get the best deal.
    • 23 May 2018
      The new Loftus Park development in Arcadia is really going to boost the demand for homes and rental accommodation close by and the neighbouring suburb of Sunnyside, says Gerhard Kotzé, MD of estate agency group RealNet Holdings.
        
    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