East London turns in a brilliant performance

Dina Anvari of Homenet Cornerstone with her award presented by Homenet MD David Rogers
Blessed with pristine beaches and a wide range of amenities and attractions as well as a strengthening local economy underpinned from new industrial infrastructure, East London has proved to be a winning proposition for property investors over the past 24 months.
So says Lance Gouws, principal of leading local estate agency Homenet Cornerstone, which was the top performing office at the Homenet group's recent Eastern Cape awards ceremony.

Gouws, in a Homenet press release, says the performance of residential property in and around East London has been nothing short of "brilliant", with all areas seeing dramatic price increases and some as much as 100 percent appreciation in home values.

Currently an entry-level home in East London, which would be approximately 65sqm in size and situated on the outskirts of the town, would sell for around R250 000. An average family home with three bedrooms and two bathrooms sells for between R500 000 and R850 000, while the "absolute bottom price" for an executive home would be R1-million.

"It must be said that in the past three months - as in other parts of the country - the rate of price growth has slowed down, especially at the top end of the market. Sellers have, however, adjusted quickly and demand is still strong where prices are realistic. And East London does still have a lot to offer investors in terms of good property deals and return on investment."

Gouws believes property price appreciation in the next two years is likely to be largely driven by interest rates, meaning that should interest rates increase, growth will slow and vice versa. "However, the market in East London is expected to remain buoyant with a growing demand for value-for-money homes."

To underline his confidence in the city, Homenet Cornerstone took home an armful of awards from the real estate group's regional gathering, including one for the highest value of new homeloan business generated in the 12 months to end-July for Homenet's mortgage origination partner Bond Choice.

Then Dina Anvari, who works out of the agency's Southern Wood office, was named as the group's top-selling residential agent in the Eastern Cape region and picked up a third place for the most commission earned in the region.

And to cap it all, Elizabeth Wright, also based in Southern Wood, took top honours as the region's top commission earner, as well as second place in the residential units sold category.
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