When analysing the average price of properties close to the beach in the Eastern Cape, it is interesting that property prices of the different beaches differ more significantly the closer they are to the beach but become more alike the further they are from the beach.
This four bedroom double storey home in Port Alfred offers breathtaking views from every room and is selling for R5.5 million through Pam Golding Properties Port Alfred Rosehill Mall. Click here to view.
According to Lightstone data, the average prices of true beachfront properties are about R2.65 million in Port Elizabeth, R1.75 million in Port Alfred and R1.9 million in Jeffreys bay.
Furthermore, the report notes that the difference in average property price between these three towns starts becoming insignificant for properties situated between 1 000 and 2 000 metres away from the beach, as it converges to a value of about R1 million.
This indicates that although each town has unique factors impacting beachfront properties, the location effect also wears off as you travel further away from the beach and the break point where the trends start to flatten out is at around 600 to 800 metres from the beach, reveals the report.
Coastal property prices are significantly influenced by the combination of the specific town and the distance-to-beach, notes Lightstone.
Other than cities with specific topographical and other geographical factors that impact the trend, the golden number seems to be at around 600 to 800 metres from the beach.
While there are a lot of other factors that also play a role in determining the price for a property, it is generally at this point where one could expect to pay a price that is not considerably loaded due to its proximity to the beach and should be a good place to start for prospective buyers who are looking for value-for-money properties within walking distance of the beach, according to the report.
We check out some beach properties to buy in the Eastern Cape.
Port Alfred
Isobel Meyer, area principal for PGP Port Alfred, explains that while data from Lightstone suggests that beach properties differ in price depending on how close or far from the beach they are located, they don’t quite find the same experience.
There are only 25 houses on the beach in St Francis Bay and since the turn of the millennium, only seven of these have changed hands.
“Beachfront is proximity to the beach and prices depend on what the property offers.”
Briefly talk about beach properties and what their prices are and where these are located?
Beachfront properties vary considerably in price from a typical lock-up-and-go holiday pad from R660 000 to luxury homes at R7.95 million.
All of the properties are either across the road from the beach or a couple of rows back and have good sea views.
Who is buying beach properties, where and in what price range, and what do they get for that amount?
Typical lock-up-and-go units are the most popular in this market as they are affordable and often generate income from a rental pool.
Buyers are from all over South Africa and foreigners too.
When is a good time to buy a beach property and why?
Anytime really, although more specifically during the holiday season when visitors fall in love with the beautiful town.
Port Alfred boasts both a Blue Flag Beach and a Blue flag Marina.
Port Elizabeth
Beachfront properties in Port Elizabeth are mostly sea-facing apartments or townhouses and these are priced below R1 million for a one bedroom unit and from R1.5 million up to R6 million at the top end of the market, says PGP agent Les Cummins.
A five bedroom flat in Summerstrand is selling for R2.499 million through Pam Golding Properties Port Elizabeth. Click here to view.
Meanwhile, PGP agent Linda de Lange notes that beachfront properties in Beachview and Seaview are all south-facing because of the views and as a result, they fetch higher prices which means position and views determine the property price.
“Buyers are either from Johannesburg or foreigners, as the locals feel my area is too far out of town – although its only 25 minutes' drive from the airport,” says De Lange.
According to PGP agent Debbie Pughe Parry, factors that influence property prices in the older/lower part of Summerstrand are the easy access to good schools, proximity to Nelson Mandela Metropolitan University and the Village Shopping Mall.
“Beachfront property will always sustain value as it simply offers a lifestyle option.”
Briefly talk about beach properties and what their prices are and where these are located?
Beachfront real estate is always sought-after especially for families relocating from inland and they make this a choice criteria – seafront living in preference to normal suburbia.
Who is buying beach properties, where and in what price range, and what do they get for that amount?
Living on the oceanfront forms part of a retiree’s dream to enjoy time and leisure in a scenic environment, fishing, walking or following artistic pursuits, and of course for the active participant in surfing, swimming and boating.
The Humewood/Summerstrand beachfront has a blue flag beach status, a unique coastal sea pool and kilometres of walks, restaurants and world class hotels, and the Boardwalk Entertainment complex; what’s more, buyers enjoy incomparable sunrises and sunsets throughout the year.
Sought-after freehold homes are within walking distance of the beaches, namely Brighton Drive and the Avenues, with homes in this location ranging from R1.5 million for homes that are not renovated and up to R7 million for well-established properties.
According to Lightstone data, the average prices of true beachfront properties are about R2.65 million in Port Elizabeth, R1.75 million in Port Alfred and R1.9 million in Jeffreys bay.
When is a good time to buy a beach property and why?
There is usually increased buying activity towards the end of the year when families relocate for work and business, and pupils change schools and enter into tertiary education fields.
Beachfront apartment views across the ocean, harbour and city scape are phenomenal, and penthouse style apartments are cherished commodities, seldom coming onto the market for sale. Entry level one bedroom apartments are priced from R700 000.
St Francis Bay
Richard Arderne, PGP area principal in St Francis Bay, explains that front row properties are certainly in huge demand, as there is only so much coastline and the authorities are opposed to further “ribbon” development along the whole SA coastline.
“Where they do approve developments, they insist that the properties be set much further back from the coast, so as not to interfere with the sensitive dunes, and spoil the access for the public.”
In hindsight, he says the prices set for front row properties along the coast (for example Santareme in St Francis Bay some 25 years ago) were too low relative to the other properties further back.
Buyers who bought in the front row have had their investments appreciate far more than those further back.
Obviously front row has the disadvantage of less shelter from the weather, leading to more maintenance and less days when the owners can sit outside, but this is far outweighed by the unobstructed views of the shifting moods of the sea, the fishing boats, surfers, paddlers, fishermen, dolphins, and whales, he points out.
For only R4.8 million, this front row five bedroom double storey beachfront property offers unrivalled beach views and spectacular sunrises over the ocean, and it is selling through Pam Golding Properties St Francis Bay. Click here to view.
Briefly talk about beach properties and what their prices are and where these are located?
There are only 25 houses on the beach in St Francis Bay and since the turn of the millennium, only seven of these have changed hands.
“By front row, we mean you are able to step from your front garden onto the beach.”
This indicates the high desirability of residential property in these prime locations as owners tend to hold onto their homes, even through the recent recession.
In 2003 a beachfront house sold for R4.5 million, which was the first residential property sale in St Francis Bay over R4 million and in 2010, PGP sold a beachfront home for R6.75 million which was completely demolished and a prestigious new mansion built.
PGP is selling a front row double storey house with five bedrooms for R4.8 million.
Until 2007/2008, prices of front row homes increased significantly and then flattened.
However, they have sustained value despite the fact that coastal property in many areas was negatively impacted by the economic downturn, he adds. - Denise Mhlanga
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