Port Elizabeth (PE) has always been known as ‘the friendly city’, but in the past few years it has also grown into an attractive option for savvy property investors.
Looking beyond its booming creative culture and culinary blossoming, PE provides investors with the perfect combination of an enviable coastal lifestyle at affordable prices, says Clifford Oosthuizen, MD of Westbrook.
Oosthuizen highlights some of the reasons why you should consider investing in the area:
1. Property growth potential
According to recent figures, PE achieved impressive house price growth of 6.3%, only 3% behind that of Cape Town. To dovetail this, all property types in the area have significantly increased in value over the past 10 years. An article published in February shows the average price of a freehold property increased from R690 000 and R515 000 for a sectional title scheme in 2008, to more than R1 million and R895 000 respectively this year.
2. Rental environment
It’s not just the sales side that is attracting interest in PE. There is also significant demand for rental homes in the area, providing potential investors with a solid way to investigate the city before committing to a purchase. PE boasts all the traditional big-city amenities at a rental price point that is significantly more affordable than other metropolitans in the country.
3. First-timer's paradise
PE has become a haven, not only for those looking to scale down and retire in a seaside area, but also for first-time buyers wanting value for money in the highly-competitive South African property market. The buyer profile in PE is changing, with many hunting down properties that offer a simpler lifestyle and low maintenance.
The attractive prices also make it a low-risk investment, but with good returns. And with most new homeowners falling in either the 36 to 49 age group, or the under-35 group, PE is becoming a dynamic city with a growing younger market.
4. Lifestyle estates
Of course, the natural beauty in PE has made it the perfect city for the development of lifestyle estates that can combine security, modern amenities, and affordable pricing in a central location. An example of this is Westbrook that spans 128ha and nine ‘pockets’ of development, combining residential, commercial and retail environments. The quality of life offered in a peaceful country setting makes Westbrook an ideal investment opportunity, not only retirees, but also families looking to have a secure environment where their children can grow up.
5. Multi-generational living
A highlight of living in PE is how the city has embraced the multi-generational nature of its residents. From international cricket and rugby events to the well-established Iron Man, PE offers attractions for any type of investor and visitor. Even though suburbs such as Walmer, Lorraine, South End, St Georges Park, Summerstrand and Humewood are providing good growth rates, the investor has a number of additional options available, given how quickly the city is evolving due to its multi-generational approach.
6. Platform for industry
PE is also close to the Coega Industrial Zone (IDZ). This is multibillion-dollar industrial complex established in 1999 creates an enabling environment for growth. With an enviable logistics network with rail and harbour access, Coega offers a world-class support system to any organisation looking to expand operations globally.
7. International presence
Capitalising on its location, multinational organisations like Volkswagen and Isuzu are investing billions of rands in the region with manufacturing plants. This is providing more reasons for locals to stay than do the traditional migration to Johannesburg or Cape Town. Many Grey College old boys are also returning to their roots, wanting their sons to attend one of the most prestigious schools in the country.
8. Business incentive
The Nelson Mandela Bay Municipality has introduced an incentive policy designed to attract investments in a number of areas, from tourism and agriculture to construction, logistics and automotive industries. There are several incentives available that include joint financing, rebates, and discounts. Additionally, the Department of Trade and Industry and other government departments have also developed a list of measures that can be used in conjunction with other incentive programmes.
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