Luxury properties still selling well in East London

The demand for homes in the upper sector of East London's property market has remained steady in the face of the economic downturn - mostly thanks to the fact that many buyers in this sector have access to cash.

Consequently, says Colin Kuhlmann, principal of the local Chas Everitt International franchise, the prices of luxury homes in the city have also held up well, especially when compared to other coastal towns.

Wealthy buyers, he says, have been least affected by the credit crunch, in that they often have access to cash to pay sizeable deposits or even the whole purchase price. "They don't rely on bank finance as much as other buyers so prices in the higher brackets have not come under as much pressure as those in the middle and lower sectors of the market."

"Indeed, we are still achieving record prices despite the downturn, including those paid recently for two luxury properties on the Nahoon River.

"Development catering to this sector is also continuing apace, as evidenced by an exclusive R2bn golf estate due to be built along the Gonubie River by the Billion Group."

Meanwhile, Kuhlmann says, there is now really excellent value for money to be had by buyers in the lower sectors of the market, thanks to the fact that the banks have been declining up to 80% of bond applications in some areas and have thus put pressure on sellers to lower their prices in order to make a sale to those few who can qualify for loans.

"However, we are also seeing buyers become much more aware of the long-term growth aspect of properties rather than just price. They want to know that they will see a return on their investment, so issues such as security, noise levels, traffic, the value of surrounding properties, the distance to schools and access to other amenities are playing a greater role in the purchase decision. Design, flow and future maintenance are also emerging as important considerations".



  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 18 Oct 2017
      Homes in community housing schemes such as estates and cluster home complexes are generally sold at a premium, so buyers in these schemes are often confused and annoyed to find that they don’t have much “freedom of choice” when it comes to the exterior appearance of their properties.
    • 18 Oct 2017
      South Africa’s residential sector is embracing green, with new builds and existing stock the focus of a domestic market with already the highest percentage of green building projects currently underway.
    • 18 Oct 2017
      Submitted an offer and having it accepted by the seller is exciting, but it is certainly not the end of the property sales process. There are a few more obstacles that need to be overcome before the home can change ownership and the keys are handed over. Failing to overcome any of these hurdles could result in the deal falling through and you starting the journey from the first step.
    • 17 Oct 2017
      It is relatively straightforward to make a good property investment when the economy and housing market are booming. As the old saying goes - a rising tide lifts all boats. However, says Sandra Gordon, Pam Golding Properties senior research analyst, when the economy is struggling with low growth – as South Africa’s currently is, there are still opportunities for investments
    • 17 Oct 2017
      In recent years, residential property investment has been highlighted for its value as an income stream when the property is bond-free, especially for those owners in their retirement years.
    • 17 Oct 2017
      As technology improves, so does the level of property scams that do the rounds, and while every precaution seems to be taken, there will be yet another thing that fraudsters find to dupe people out of large sums of money, warns Johnny Henkes of law firm Henkes Nolte-Joubert.
    • 16 Oct 2017
      With Accelerate Property Fund owning a large portion of business right land and partnering with the Fourways Precinct, residents in this (and surrounding) areas can almost be assured that the plans for the improvement and development of the area will increase residential property values exponentially in the coming year
    • 16 Oct 2017
      You have done your homework thoroughly, researching the market and current trends in the area and gaining a clear understanding of the renovation process you have in mind. You are not discouraged by the time and dedication required nor the plethora of possible minefields, and you decide to take the plunge. What next?
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us