Homeowners and property investors in Grahamstown have widely welcomed the recent decision to have the Eastern Cape High Court seat remain in the town.
This home offers three bedrooms, two bathrooms, underfloor heating, a double garage and access to a communal swimming pool and tennis court. It is on the market for R1.895 million - click here to view.
A strong legal fraternity, including Lower and High Court officials, attorneys in private practice and an office of the Legal Aid Board, represents a major component of the local real estate market.
This is according to Aidan Sparrow, co-owner of the local RealNet franchise, who says many property owners were concerned that moving the High Court would result in a sudden flood of properties for sale that would drive values down.
He says the official announcement that the seat of the Court will remain in Grahamstown instead of moving to Bhisho has thus been enthusiastically welcomed by these owners as well as many others in the wider community that have been campaigning for this decision.
Traditionally, he says Grahamstown has enjoyed a resilient property market thanks to educational institutions such as Rhodes University and several top schools, various local institutes and the nearby army base, in addition to the strong legal fraternity.
And now, he says prices are expected to maintain a steady upward curve, especially as there is very little new development going on in either the sectional title or freehold sectors. It is still much cheaper to buy existing homes than to build from scratch, he explains.
The existing sectional title market, mainly geared for student accommodation, usually picks up momentum in the last quarter of the year when parents whose children complete their studies start marketing their units. However, Sparrow says enquiries for available units are starting to trickle in much earlier than usual and he expects a long waiting list by the time current owners start marketing their units.
Prices for sectional titles suitable for students currently start at around R800 000. Units at this price level are usually compact 60 square metre flats with two bedrooms in secure estates. Larger sectional titles of around 120 square metres with three bedrooms and a garage sell at around R1.2 million.
Family buyers currently prefer older homes outside security estates. Their preference is mainly value-driven since older properties typically offer spacious rooms and large gardens at prices from about R1.15 million in the lower ranges to about R1.7 million for homes in desirable areas, he says. Many older properties offer period homes that reflect the town's rich history, which allows a genteel, yet comfortable lifestyle.
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