In the Beacon Bay area close to East London, the release of land in the form of larger sites for development and individual erven for residential use has resulted in a flurry of new home building and development.
“This area is the pre-eminent executive suburb of East London, with all the necessary draw cards to attract prospective buyers,” says Lance Gouws, who with co-principal Kim Wood recently opened a new Homenet office in the area.
“What makes it different from other suburbs around East London is that it has newer and more modern homes, which are now attracting numerous prospective buyers.”
As an indication of the development expansion in Beacon Bay, the area’s new Triple Point development will be worth more than R500m when complete. Plans for the development encompass residential apartments, retail and office space, as well as a four-star hotel.
At R210m, the first phase of the development is to commence this month (subs: August 2007) with the construction of 200 one, two and three bedroom apartments.
Gouws says other developments in Beacon Bay span the different price segments, starting at R500 000 and increasing in price to the upper R1ms for executive-type homes and cluster schemes.
Prices for vacant land have increased substantially, with plots that were selling for around R70 000 in 2005 currently selling for around R300 000. “And while buyers of plot-and-plan packages were previously able to get into the market here for around R350 000, these packages are now at the R500 000 mark.”
Meanwhile previously-owned homes in Beacon Bay are priced from around R1m which will buy a three-bedroom, two bathroom home with double garage and pool. “And although there is a lot of development activity taking place in the area with many new homes coming on to the market, the traditional middle to upper management buyers who purchase these homes remain our bread and butter.”
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Gouws says future development prospects for the area include a new private hospital and an upmarket shopping mall named Eastport. The Buffalo City Municipality has also allocated R18m to resurface roads, install new streetlights and plant more trees.
“There are several estate agencies that specialise in the area, so competition fierce. But demand for properties is high and the market is very active. Future prospects also look really good because the area between Beacon Bay and Gonubie has been identified as the major growth node for East London.”