Eastern Cape Property Hot Spots | Port Elizabeth and East London top secondary cities surge

The residential property market in the Eastern Cape has remained surprisingly resilient during the unprecedented times the economy currently faces. 

READ: Gauteng Property Hot Spots | 'Strong rebound' in top Joburg and Pretoria East suburbs

A metro which has outperformed Cape Town since October 2018 is Nelson Mandela Bay, which is reflective of the strong growth in this regional market and which may well be attributable to the semigration of South Africans to coastal towns, with the Eastern Cape, as well as KwaZulu-Natal, benefiting due to affordability and the lifestyle offering.

This is according to Dr Andrew Golding, chief executive of the Pam Golding Property group, who says a post-lockdown trend that is expected to continue is "heightened demand in secondary cities such as Port Elizabeth and East London.

Golding says these areas "are seeing properties up to R2 million and R3 million respectively selling literally in days".

"In Port Elizabeth, areas most in demand are those priced below R2 million in particular in the Western Suburbs, Lorraine and surrounds, Broadwood, Charlo and Salisbury Park, and in the upper end of the market Summerstrand, Walmer and Mill Park remain viewed very favourably.

SEE: Looking for a home that ticks all your boxes? Try Property24 Alerts

"In East London, central areas such as Nahoon, Bonnie Doon, Woodlieigh and Stirling are seeing high demand due to proximity to top East London schools and other amenities such as business areas and Nahoon Beach," says Golding.

The residential property market in the Eastern Cape has remained surprisingly resilient during the unprecedented times the economy currently faces, adds Sandra Gordon, Pam Golding Properties senior research analyst.

“Buyers across the board include first-time buyers, those downsizing or upgrading, and holiday home buyers. In both cities, there’s also a steady flow of vacant plot sales, suggesting strong demand for new homes,” says Gordon.

Similarly, gated communities are also seeing a surge in popularity as peace of mind, while spending more time working from home is a crucial factor for property investors.

The Amdec Group’s Westbrook, in Port Elizabeth, is just one such example that catering to multiple generations in one secure estate. It is a safe, walkable precinct that will comprise 3 500 residential homes spread across nine residential villages, along with a “town square” set to feature a variety of commercial and retail spaces. A medical centre is also on the cards. 

READ: Port Elizabeth's Westbrook fits global trend of safe, multi-generational estate living 

(Source: Property24 Trends data) 

Secluded suburbs in demand

Clinton Krause, principal of Chas Everitt International in East London says, “The market in East London and surrounds is extremely busy overall”, off the back of the low interest rates and wanting a lifestyle change being the two main factors driving demand.

Krause says two coastal areas that are experiencing particularly high interest are the secluded suburb of Cove Rock and the seaside village of Winterstrand, to the south-west of East London.

“Cove Rock, which is just 10km from the airport, has always been popular with executives of the nearby Daimler-Chrysler plant, but now we are starting to see interest in the Cove Rock Country Estate, for example, from much further afield and even from Gauteng.”  

“In the wake of the Covid-19 lockdown, many more people have realised that they can work or run their businesses from home most of the time and are actively seeking a more relaxed lifestyle in this type of development, away from the ‘crime and grime’, and traffic congestion of the big cities,” adds Krause.

The estate offers high security and excellent sports facilities, including a nine-hole golf course, as well as sea views, easy access to the beach, and a variety of superb homes at prices from around R1.2 million to around R3.7 million.

(Source: Property24 Trends data)  

Buyer will secure an entry-level property at R1.2 million in St Francis, while Jeffreys Bay can offer homes from R900 000. The greatest demand in St Francis Bay is in the R2 million to R4 million bracket and Jeffreys Bay homes are sought-after from R900 000 to R1.5 million, says Greta Daniel, national sales and operations manager for Pam Golding Franchise Services.

READ: What's driving buyers' property purchasing decision in 2021?

Entry-level home price in Port Alfred is at R500 000, and a home in Kenton On Sea at R900 000, while in both of these sought-after coastal towns the greatest demand where stock is selling quickly is R800 000 to R2 million in Port Alfred and R1.5 million to R2.5million in Kenton. 

While a quick drive inland to historic Grahamstown, and the entry-level is R850 000, and there is a shortage of stock up to R1.3 million because of high interest, adds Daniel. 

*Property24 Listings Data Disclaimer: The trends detailed in this article are based on Property24 listings, current at the time of publishing, and property transfer data supplied by Deeds offices, which typically take 3-4 months to reflect. Suburbs are listed according to Property24's geographical database. In some areas this will include both commercial and residential properties. The age demographic data of buyers, sellers and stable owners is determined over a six-month period.  These Property Values should not be used as a substitute for independent professional advice and is subject to Property24.com Terms and Conditions.