Distressed sales buoy PE market

So says Charlotte Vermaak, sales manager of the Chas Everitt International office in the city, who estimates that 30 to 40 percent of the sales taking place currently are of distressed properties – some of which are those being sold under the various bank assistance programmes that help owners keep their credit records intact.

“The most popular are family homes in the R700 000 to R900 000 bracket, which are being bought by medium-income buyers seeking good value for money and keen to access the favourable financing arrangements that the banks offer on such properties,” she says.

“At the same time, many sellers of these properties are deciding not to go into the rental market, but to simply downscale to smaller, more affordable homes, and this is boosting demand in the R400 000 to R700 000 bracket. There is a shortage of rental property in Port Elizabeth and in many cases it is easier and makes more sense to buy again, especially with interest rates at their current levels.”

Meanwhile, Vermaak says, there is also more activity now in the R900 000 to R1,2m bracket as increasing numbers of existing homeowners also take advantage of the low interest rates to upgrade to bigger and better homes or more central areas with better access to their workplaces and the schools they favour.

“Suburbs such as Lorraine, Parson’s Vlei, Westering, Kabega Park and Richmond Hill, particularly, are experiencing good sales volumes at the moment because of these trends, with Lorraine, for example offering a whole range of properties for those moving up or down the affordability scale.”

In fact, she says, the Port Elizabeth market overall is gaining strength, even though production in the city’s main industries and business sectors have not yet returned to pre-recession levels.

“However, it is important to note that because there is still a substantial oversupply of properties for sale, we are not expecting prices to show any significant upward movement for some time yet.

“And the same goes for rentals, even though there is a shortage of stock and high demand. We have 20 to 25 applicants for each rental unit that becomes available now, compared to 10 applicants two years ago but landlords, it seems, would rather keep existing tenants now than raise rentals and risk losing them.

“Rentals at the moment range from R3500 to R5500 a month for a two-bedroom flat or townhouse, and from R8000 to R10 000 a month for a three-bedroom house, and that is pretty much at the limit of what local employees can afford.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    • 19 Jun 2018
      Douw Steyn, one of the richest men in the country, recently allowed a rare glimpse into his Fourways Palazzo when it was featured on the SABC lifestyle programme Top Billing - and it is beyond your wildest dreams!
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for
    • 18 Jun 2018
      Sellers are often caught off-guard by the expenses incurred in the selling of a property. Just like there is no such thing as a free lunch, there is also no such thing as selling your property without incurring at least some costs.
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us