select
|

Vibrant East London property market prompts Chas Everitt expansion

After several years in the doldrums, the East London property market has really “come alive” in the past few months – and prompted local Chas Everitt East London franchisee Clinton Krouse to double the size of his operation in the city.


“The latest statistics from ABSA tell the story,” he says, “and confirm the significant rise in home buying activity that we’re seeing on the ground. This has prompted us to expand and open a new office in Vincent to complement the existing one in Greenfields.”

The ABSA figures show that the Eastern Cape is the region with the second highest home price growth rate in the past 12 months (9,3%), and that East London, with a 19,6% growth rate, has been the major contributor to this increase.

“And it isn’t only a case of coming off a low price base and catching up,” says Krouse. “The average price for every type of housing in East London is now higher than the national average for that category.

“The average price of small homes, for example, is R720 000 in East London, compared with R691 000 nationally. The average price of medium-sized homes here has risen 16,9% in the past year to R1,075 million, compared to the national average of R1,023 million, and the average price of large East London houses has risen 32,5% to R1,849 million, compared to the national average of R1,589 million.”

Krouse says the main factor driving the market – and these increases – has been upgrading in order to take advantage of the current low interest rates which make home loans more attainable and affordable.

“Many young people, especially, are now ‘upgrading’ from rental accommodation or living at home with their parents to their own first homes. Their targets are usually cheaper properties, of course, but there has been so little new development here of starter homes in the past few years that virtually anything listed for less than R600 000 is sold within just a few days. And house prices are rising in this category because of the shortage of stock.”

Meanwhile, he says, existing East London home-owners are taking the opportunity to upgrade to bigger homes and better areas. “We are seeing a lot of movement from two-bedroom homes in Mdantsane, for example, to three-bedroom homes in Cambridge, Cambridge West, Gonubie and Greenfields, and sellers in these areas are now on the move to areas such as Beacon Bay, Central, Stirling and Vincent, in order to be closer to the city’s top schools.”

“These trends, along with the much-increased activity, are what influenced our decision to locate our new office in Vincent, from where we can better serve buyers and sellers in the central and eastern parts of the East London property market. And we have already attracted three top-performing agents from other East London real estate agencies to join the new office, with more to follow.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
        
    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