The latest stats from Lightstone Property reveal that the Eastern Cape has the highest provincial house price inflation at 4.5%. This beats the 3.9% inflation rate of the Western Cape’s property market, which has been the leading province in terms of house price growth for some time now.
For those who are looking to capitalise on this growth, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, encourages investors to investigate the new opportunities that are arising in the P.E. property market.
According to Lightstone Property stats, the median price for sectional titles in Port Elizabeth grew by 4% from 2018 to 2019. Freehold titles grew by 5% over the same period. This beats that national inflation rate of just 1.7% for 2019. Yet, despite this growth, Craig Seaman, Broker/Owner of RE/MAX Above and Beyond, explains that the real estate market in Port Elizabeth is still best described as a buyer’s market. “Sellers must be realistic when setting their selling price if they want to sell within the current market. On average, homes are taking around three to four months to sell in our area,” he explains.
Because of the oversupply, buyers would do well to invest in modern developments before the demand for those kinds of properties increases and property prices rise to match the demand. As it stands, Seaman explains that these sorts of properties are already doing well within the current market. “Modern properties that are close to good schools are popular among buyers in this area. Most are also choosing to sell because they are looking to upgrade,” Seaman states.
One upmarket development that Seaman recommends is BellaMare, a luxury apartment development in Summerstrand that is just a short walk away from the ocean. These apartments start from R885,000 for one-bed units and rise to R 1,565,000 for three-bed units.
Lemon Tree Lane is another development ideally suited for young families who are just starting out. There are 83 face brick, sectional title, semi-attached units in this development. Prices start at R760,000 for a two-bed, one-bath unit and rise to R860,000 for a two-bed, two-bath unit.
One last opportunity investors should also keep an eye out for is the Florida Heights development which is set to house more than 1,000 families in its first phase. Phase two (which would take at least 15 years to complete) will include a further 12,000+ homes. The development received Environmental Authorisation on 24 Jan 2020. Once this project comes together, it is predicted that over 10,000 direct and indirect jobs will be created during the first five-year roll-out, which would bring a desirable capital injection into the area.
“There is plenty in the pipeline for this Eastern Cape municipality. Investors would be wise to watch this market and seize the opportunity to invest when the right prospect presents itself,” Goslett concludes.