With activity continuing to rebound over the past year, East London’s housing market is experiencing an influx of families, young professionals and first-time buyers.
This is according to Sean Coetzee, area principal for Pam Golding Properties, who says that positively, with a median price of R1.34 million, freehold homes in East London offer good value and are accessibly priced for home seekers.
“For example, suburbs such as Cambridge and Amalinda, which were previously deemed ‘blue collar’ are enjoying an influx of buyers who are not only buying but making considerable improvements to properties, with sand, cement and building materials in evidence in locations such as these, where modest starter homes can be had for as little as R1.1 million.
“The sweet spot for first-time buyers is in the price range mainly between R800 000 and R1.5 million, while the market up to approximately R3 million is very active.
“Generally, there’s a high demand in East London for sectional title properties, mostly as a first step into the property market for new buyers, or retirement-aged buyers looking to down-size and simplify, says Coetzee.
“While the largest group (48%) of home buyers are in the age bracket from 36-49 years, young adults between 18 and 35 years comprise 28% of all recent buyers. The Eastern Cape doesn’t see the same influx of semigrators from Gauteng as areas such as George or Mossel Bay. Many of our home buyers are aspirational locals looking to climb the property ladder, just like any other city in South Africa.
East London has currently *759 new property listings according to Property24 Trends Data, with the average asking price for the area being R1.4 million. The average sale price per erf for 2021 was about R1.05 million while Section Scheme Units for the same period is about R800 000.
The latest residential listings on Property24 show that three-bedroom homes are most widely available, at an average list price of R1.4 million. Sellers in the area fall within the 65-years or older (35%), while 39% of buyers also fall within the 36-49 years age group.
Click here to see all the sale and listing price trends in East London
“Notably, and according to Lightstone statistics, over the 12-month period from April 2021 to March 2022, 76% of buyers were under the age of 50 years,” says Coetzee.
Also according to Lightstone, East London experienced a sharp increase in the number of plots sold in 2021, with a total of 245 plots sold, which is the highest number registered during the past decade.
“We see many of our buyers purchasing now with a plan to build at a later stage on estates, especially on the East Coast, which has grown exponentially in popularity. For example, Balugha River Estate is 80% sold out and Khamanga Bay has seen a great deal of interest, especially regarding vacant plot sales.”
Coetzee says there is a strong demand for decent, affordable accommodation for the city’s senior citizens. “This is definitely a sector which offers lucrative returns for savvy investors and developers with the right product at the correct price.”
Positive news for East London, with spin-offs for the local economy, including the residential property market, is Mercedes-Benz’ R3 billion investment in production of the new generation C-Class.
In November last year, media reports stated that 16 companies in the automotive sector have invested a total of R3.3 billion in the East London Industrial Development Zone (IDZ), which is also expected to help boost the economy in the Eastern Cape, thereby creating over 2 000 jobs, as well as further indirect jobs via the supply chain.
In addition, the re-opening in October 2021 of the 200 000 Cookhouse-Blaney railway line between East London and Gqeberha – including the Coega Industrial Development Zones, which reduces the travel time by almost half, is anticipated to support the province’s manufacturing sector, reducing the transport cost of goods and alleviating pressure on road infrastructure, says Coetzee.
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*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.
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