select
|

PGP ACHIEVES TOP PRICES IN EASTERN CAPE & GARDEN ROUTE

Amid the worst property trading conditions experienced in South Africa since the interest rate crisis of the late 1990s, the Eastern Cape's housing market has proven the most stable of all the regions, and is now poised for growth, says Dr Andrew Golding, CE of the Pam Golding Property group.
 
"Having steered a relatively even course through somewhat turbulent trading conditions – and bearing in mind that the residential property market is largely driven by sentiment and perception – it is apparent that the Eastern Cape rates well in the minds of most home owners, who have also had to contend with the challenges of stringent bank lending criteria and the National Credit Act," says Dr Golding.
 
"This region is also seen as a relatively safe environment with property values that are reasonable – with a good chance of escalation for the future. With family lifestyle playing an increasingly important role in determining people's choices of home buying, the Eastern Cape has excellent educational institutions, a factor which attracts families from South Africa and beyond. Port Elizabeth and the immediate surrounding areas provide ideal facilities for these families, including a healthy variety of activities including water and other sports, wonderful clean beaches, cycling and trails."
 
Record price in Port Elizabeth:
Despite the difficult trading conditions Pam Golding Properties achieved the highest price paid for a residential property in Port Elizabeth last year (2009), at over R10 million – for a five bedroom home set on an erf of 4000sqm in Upper Walmer. Another R10 million sale was recently concluded for a large property with panoramic sea views situated in the Chelsea area, on behalf of an overseas investor wishing to extend his business interests in the region. These exceed the previous highest price of R6.2 million – which was achieved in 2006 by PGP in Port Elizabeth.
 
Comments Andy Collett, regional manager for PGP in the Eastern Cape, Garden Route, Karoo and Kalahari: "Generally across the region the R600 000 to R1.6 million price range is attracting the most attention. Exceptions are found in Knysna, where prices average between R2.5- and R3.5 million (without sea views) with exceptional properties sold from R7-R14 million at Simola, Pezula and The Heads; in Plettenberg Bay where prices average from R3-R4 million with a plot on Beachyhead Drive near Robberg sold for R5 million; and also in St Francis Bay, where a house on the canals sold for R6.7 million in December 2009. While buyers are showing renewed interest they are cautious of over-priced properties as they are very aware of current market values."
 
Collett says PGP East London is experiencing a lively surge in demand with sales showing a significant upturn since December, with 20 homes sold at a total turnover of R22.3 million in January 2010, reflecting a significant increase over January 2009 when four units were sold at a total value of R12.8 million. 
 
Another area of interest is in game farms – including those for buffalo breeding - with the company recently achieving prices of around R3300 per hectare in the Graaff-Reinet area, while stock farms are selling for around R2500 per hectare in the eastern Karoo regions of Graaff-Reinet, Middelburg and Somerset East.
 
Says Collett: "The Coega development has final begun to have a positive spinoff for the residential sentiment in the region. Recent confirmation of the massive PetroSA refinery and attendant industries in the area provided the 'tipping point' for this with the creation of thousands of new job opportunities, underscored by the added impetus of the recent R40 billion export orders for VWSA.
 
"There are positive signs that the house market in the Eastern Cape is recovering with PGP interested buyer numbers up by some 50 percent since the beginning of the year (2010) and sales volumes for PGP up by just over 90 percent. Enquiries are once again being received for leisure properties, mostly below R2 million and along the Sunshine Coast from St Francis Bay to Port Alfred, signalling a much improved summer season for the property market. Discerning investors with residential property portfolios in the region have also become active – snapping up lower priced sectional title units mainly in the price range below R1 million – a price sector which yields good returns due to a buoyant rental market."
 
He adds that while much has been made of 2010 and the expected influx of foreigners into the country, PGP is geared for a sustained and focused drive to introduce visitors to the benefits of South Africa and address the questions surrounding purchasing South African properties. "We see the real benefit beyond next year as during the World Cup the world will be exposed to the beauty of our country with particular emphasis on the coastal areas. We anticipate that many more will make the journey to our country after the hype of the event is over," says Collett.
 
Issued by Gaye de Villiers


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Nov 2017
      Since 2012, sectional title complexes have been leading the South African property market, not only in terms of price growth, but sales volumes as well. Remaining relatively strong, even in the face of 2017’s political and economic turmoil, experts say this market segment could offer valuable insight into South Africans’ property purchase priorities.
    • 20 Nov 2017
      Regardless of whether you are purchasing your first start-up home, downsizing or moving in with roommates, finding ways to maximise small spaces can be a big advantage, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Nov 2017
      Property valued at approximately R1 billion is on High Street Auctions’ sales floor during the month of November, including the much-anticipated sale of the Tshwane Mayoral Residence and the land occupied by one of South Africa’s oldest operating gold mines.
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
        
    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