The average East London property sits on the market for four months and the demand remains between R800k and R1,2m.
So says Anne Chegwidden, broker/owner of RE/MAX Sunshine Coast, who adds that if a home is correctly priced, or if the seller is willing to negotiate, the property is sold within one to two months. “There has been an increase in buying activity in East London and surrounding locales from Kaysers Beach, Kidds Beach, Gulu and east along the coast as far as Morgans Bay and Haga Haga. However, buyers are unfortunately having difficulty in obtaining mortgage finance.”
She says depending on the area, entry-level homes sell between R450k and R700k, while middle of the range homes sell from R800k up to around R1,8m. “And while there are homes available up to R10m, we do not have buyers or stock in this price range.”
She says that these are good locations because they are close to schools, hospitals, shopping complexes and a range of other amenities. “Many of the properties will also be re-zoned in future and become business properties, thereby increasing in price, and continuing the cycle of demand.”
Looking at trends in the area, Chegwidden notes that there are numerous homeowners wishing to sub-divide their properties, but unfortunately the municipality is very slow in processing the requests for a number of reasons. “Many homeowners are also renovating their property, either to make the homes into rentable units or just for a general upgrade as opposed to moving.”
Taki Kondylis, principal for Seeff in East London, says the East London property market's lower end is seeing a tremendous amount of interest from potential buyers, but bond approvals for these buyers are scarce.
“There are a high amount of refusals by the banks. It's worse than it used to be. If the banks don't reject the buyer, they reject the property as being overpriced, or vice versa."
Notwithstanding this dour trend, he says the East London property market is excellent with sales picking up across the board. "In terms of residential property, houses and townhouses are selling incredibly well. There are plenty of entry-level buyers, with the mid-range and upper-end markets also seeing significant activity. The price range between R900k and R1,5m is seeing the most movement."
He says prices are definitely rising and so are sellers' expectations. "But these high prices aren't always followed by results." – Eugene Brink
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