Nelson Mandela Bay Metropole, located on the shores of Algoa Bay in the Eastern Cape Province, is seeing robust growth in house prices, with activity in its residential property market rebounding to around pre-Covid levels.
According to Lightstone, strong house price inflation of 8% for January to February 2021 (latest available data) sees this city retain its place as the top performing metro housing market in South Africa. This even surpasses Gauteng East’s solid house price growth rate of 5.7% over the same period.
Sandra Gordon, Pam Golding Properties senior research analyst says NMB has outperformed since December 2019, relative to other metro housing markets. House prices in NMB rose by an average of 6.29% last year (2020), which is almost double the increase in eThekwini (at 3.26%) - the second strongest growth rate recorded last year, with robust growth in NMB house prices continuing into the new year.”
Most popular suburbs
In the month of June the city of Gqeberha received in excess of 3.7 million pageviews on Property24, and an overall 11.3 million pageviews for the 3-month period between April to June 2021.
The average asking price for Gqeberha, about R1.089m during 2020, has seen a 9% increase when compared to pre-pandemic period of 2019, according to listings on Property24. Retrospectively, the average asking price was R830k in 2015, and has increase by some 31%, over the five-year period up until 2020.
The top five suburbs receiving the most interest across Property24 over the last three months include Summerstrand with the most pageviews, following by Lorraine, Mother Well, Algoa Park and Walmer.
The suburbs falling squarely within the popular first-time-buyer price average of R1m includes Lorraine with an average asking price of R972k, having seen a 2% shift in 2021.
| Top 15 Gqeberha suburbs on Property24 between April to June 2021 |
| Suburb | Average Asking price in 2021 | % Difference in Average Asking Price for 2020-2021 | % Difference in Average Asking Price for 2019-2020 | % Change in number of listings per suburb 2019 - 2020 | % Change in number of listings per suburb 2020 - 2021 |
| Mill Park | R3 495 000 | 2% | 19% | 26% | -34% |
| Lovemore Heights | R2 697 500 | 9% | -1% | 6% | -36% |
| Sunridge Park | R2 450 000 | 9% | 2% | 12% | -40% |
| Summerstrand | R2 400 000 | 6% | 12% | 11% | -7% |
| Walmer | R2 299 000 | 4% | 47% | 38% | -39% |
| Bluewater Bay | R1 450 000 | 13% | 9% | -1% | -25% |
| Lorraine | R1 120 000 | 2% | 13% | -8% | -26% |
| Fairview | R972 500 | -2% | 13% | 4% | -23% |
| Westering | R880 000 | -12% | 18% | -22% | -5% |
| Kabega | R850 000 | 11% | -1% | -14% | -21% |
| Kwamagxaki | R720 000 | 2% | 7% | 3% | -36% |
| Kwadwesi | R597 000 | 20% | 12% | 9% | -18% |
| Algoa Park | R575 000 | -4% | 12% | -5% | -9% |
| Bethelsdorp | R478 000 | 4% | -8% | 20% | -25% |
| Motherwell | R450 000 | 7% | 10% | 10% | 1% |
Source: Property24 Trends Data
“Notwithstanding the lockdown - including the initial hard lockdown - for the 12-month period from March 2020 to the end of February 2021, we’ve had our best financial year to date both in terms of sales turnover and volumes, namely units sold. This is despite the fact that due to the Covid-19 regulations we couldn’t trade during the latter part of March, April and May last year (2020)," says Justin Kreusch, Pam Golding Properties area principal in Gqeberha.
“Some notable sales include a Summerstrand property that sold for R6 million cash prior to going to market, another Summerstrand home which fetched R10 million, and a home in Little Walmer Golf Estate which sold for R6.75 million. There has also been significant activity in the Beachview/Seaview area which is underpinned by a trend towards residing slightly further out of town, especially since it’s generally now widely accepted to work from home.
“That said, while we are active in the top end of the market, above R3 million, 86% of our sales are in the sub-R3 million price band.”
Kreusch notes while residential property in NMB remains predominantly freehold, comprising 73.5% of total units, the composition of housing stock is experiencing a shift towards sectional title property and, to a lesser extent, estate homes, which comprise approximately 5.6% of the total. (The breakdown of home types within an estate is not available.)
'Mill Park Private Estate offering affordably priced family homes'
To cater for the demand for affordably priced family homes ideal for work-from-home, a brand-new development, Mill Park Private Estate, conveniently situated in easy reach of Greenacres Mall, Greenacres Hospital, Collegiate Schools and Grey High School, has been launched.
Says Kreusch, “Forty-five spacious, three and four-bedroom homes with open plan interiors and priced from R3.05 million offer the ideal option to work from home while children have their own space for homeschool or outside recreation - all in a secure environment and in close proximity to all amenities, including the Golf Club.
“Over the past 12 months we’ve also seen an influx into the area of younger buyers, including young families and professionals, contributing to the fact that the majority of recent buyers were middle-aged or young adults. Areas which are most sought after among home buyers include Summerstrand, Walmer and Mill Park. On the other side of Cape Road, Mount Croix and Glendinningvale also remain popular as they offer similar convenience in terms of location, but in a more affordable price range, adds Kreusch.
“In the Western Suburbs, which offer easy access to the N2 and are in close proximity to Baywest Mall, the area of Lorraine, with homes priced up to about R1.65 million, is in demand among home buyers, with numerous businesses migrating here. A few years ago, Toyota relocated their main branch to Lorraine, with an investment of over R20 million, while Makro, which is already situated in the Western Suburbs, recently relocated their store further west to Bridgemead.”
Kreusch says all these areas are sought after due to their easy access to good schools and work precincts and, in the case of Summerstrand, proximity to the beachfront. For more accessibly priced areas it’s more about great value while not being too far from schools and shops.
'Stock shortage creating perfect Sellers' market'
“Currently, the market is experiencing a shortage of stock to meet the demand. This, coupled with the prevailing low interest rates, has created the perfect sellers’ market where buyers are competing for properties, which in turn has driven prices up.
“Furthermore, the low interest rates have resulted in plenty of activity from first-time buyers, especially in the sub-R1.2 million price range. With bond repayments on R1.2 million over 30 years being under R8 000 per month, it makes more sense to buy than pay a similar amount for rent.
“Positively, the city is seeing several key developments in Gqeberha, with the R500 million Boardwalk Mall extension having commenced, which should double the amount of retail space, and a further investment of some R200 million planned for a new hotel. In the old harbour, the decommissioning and moving of fuel tanks and manganese terminals to the Port of Ngqurha will make way for the much-anticipated Waterfront development. In addition, we note general improvements with roads being resurfaced and marked again, potholes filed and the backlog on the cutting and maintenance of municipal parks being attended to,” adds Kreusch.
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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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