While most parts of the country face tightening markets, the quieter and comparably more affordable suburbs in the Eastern Cape and KwaZulu-Natal seem to be continuing to attract buyers who are seeking out better lifestyles at more affordable prices.
Rising interest rates have negatively affected consumer’s buying power, which is causing homeowners to seek out more affordable solutions. According to the Q1 2023 RE/MAX National Housing Report, the median asking price in the Eastern Cape is R1.599.000 which makes it one of the most affordable seafront provinces, with KZN coming in at R1.650.000 and the Western Cape sitting at R2.550.000.
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Warwick Heny, Broker/ Owner of RE/MAX Kowie that operates in the coastal area of Port Alfred, Kleinemonde, Bathurst, and surrounds, explains that their markets are steadily active, with buyers coming from all over South Africa as well as a few foreign buyers.
Ideal retirement or starter home in Port Alfred
“The reason our areas are so active at the moment is owing to the fact that buyers are now actively seeking out more affordable destinations than the pricey Western Cape, for example. They are looking for areas with a higher chance of growth in quieter, smaller towns which can afford them a better lifestyle than where they are currently.”
While the region is a little less known, Heny comments that the area is easily accessible from the medium sized town of Port Alfred or the villages of Kleinemonde and Bathurst. “The pristine rivers and beaches in these areas tend to be big drawcards for visitors. These towns have smaller populations of roughly between 3,000 – 30,000 people, and buyers who have holidayed or passed through often comment on the fact that the residents here are helpful and friendly, unlike in the bigger cities where everyone is in a mad rush,” says Heny.
The feeling of farm living in Kleinemonde
According to Heny, true Eastern Cape hospitality is to be found here, with hardly any traffic congestion to worry about. “The area is also known as the Sunshine Coast, as it apparently boasts more days of sunshine than any other area in the country. Port Alfred is also the largest of the towns on the Sunshine Coast and offers an impressive array of amenities and educational institutions, which allows this to be more than just a holiday destination for buyers,” he notes.
The area offers many other drawcards for tourists and buyers alike. The town offers the Royal Port Alfred Golf Course, the Royal Alfred Marina, 43 Air School, and an international university. “Property sales on the Royal Alfred Marina have been impressive in 2022. Apart from having the best security, these homes all have private jetties that allow homeowners to boat out of the Kowie River mouth and into the beautiful Indian Ocean. The lifestyle this development allows is second to none. Prices have also improved substantially in this area since the pandemic, with many buyers now craving better quality lifestyles and work-from-home situations,” Heny explains.
The beachfront is also popular choice for buyers in these markets as many up-country buyers are wanting sea views and quality homes at good prices. “Buying property in these areas has also become easier by the fact that residents can commute to anywhere from the airports in PE and East London, only 90 mins drive away,” Heny notes.
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With service delivery failing to improve across many parts of the country, and for as long as the work-from-home trend continues to be the norm, it is possible that smaller coastal markets will remain active while markets in other parts of the country begin to tighten.
Speaking into the property market as a whole, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that in a changing market such as the one we find ourselves in now, “the key is to keep in touch with a reliable real estate professional to stay up-to-date on how your local market is performing so you can take advantage of opportunities as and when they arise,” he concludes.
Preferred Property Options Based on Affordability
Neither The North Coast or the Midlands KZN fall into the category of bargain homes but there has been a shift regarding the type of property now in demand and selling based on Buyer affordability.
Rory Anderson from Local Real Estate Ballito, focusses on secure gated Estates on the North Coast with the majority of his sales coming from Simbithi Eco Estate. “What has been very apparent to me this year is that most of the sales activity has moved away from the freehold homes to townhouses and apartments. In the past 5 or 6 years a large portion of the sales have been in the R6m - R8m price points whereas this year the trade has been in the R3m - R5m price points.
Lovely pet-friendly townhouse Simbithi Eco Estate, Ballito
"Clients are once again looking for lock-up and go properties with less maintenance required. They are also under increased financial pressures but at the same time they require the best possible security and facilities available to them," says Anderson.
According, Local Real Estate agents, Stephanie Badenhorst and Jevan De Villiers, says Ballito has seen a major increase in first time buyers and younger families purchasing homes, with the majority of these being in the sectional title developments based on security and low maintenance. Additionally, there are many young professionals and young families moving to the coast and investment buyers also see the value in buying investment properties for long term rentals. There are several older sectional title developments in the Sheffield Beach area that are being targeted by Buyers, whilst the investment Buyers are focussing on the new developments that are now being completed as well as ones that are launching in the Central Ballito area. As soon well priced (bargain) properties become available they are being snapped up for rental investment.”
Sleek apartment to rent offering easy indoor and outdoor living in Sheffield Beach, Ballito
Jake Morgan, Local Real Estate agent, says: “Buyer enquiries have moved strongly to the smaller homes in gated estates which start at R2.000 000. An older estate which holds properties in this price range is Caledon Estate based in Ballito which is a safe secure family estate where you can purchase a 3 bedroom, 2 bathroom freestanding home for just over R2.000 000. This distinguishes this estate as there not many properties available for that price in Ballito’s gated communities”.
Easy living in Caledon Estate
Cameron Leitch, Local Real Estate, Nottingham Road, has found that the small holdings between R2 million and R3 million are in high demand in the greater Midlands area. There have been a number of sales in the past 6-8 months in that bracket with many buyers wanting to have weekend getaway place with space and mainly for those wanting to move out of the cities and have some degree of living off the grid and off the land.
Immaculate home nestled in the heart of Nottingham Road
“Buyers are definitely looking at value for money and are once again looking at townhouses as they want security within an estate as it also gives them space to move around in. An interesting development which does offer good value are the townhouses at Giants View Estate”.
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