Property in the Eastern Cape is looking up according to property experts. From Port Elizabeth and East London, to Port Alfred and St Francis Bay, the Eastern Cape has become a popular destination for potential buyers looking for good value for their hard-earned money. While the property market in the Eastern Cape may have lagged behind other major metropoles in the past, a number of economic and lifestyle related factors have recently come together to provide a favourable market for those in the industry. While the cities within the Eastern Cape still have a way to go to match the markets of the Western and Northern Cape, they look set for a promising future.
The Eastern Cape’s property market has changed for the better, and there are a couple of reasons why. One is that its cities have received sizeable investment and development, such as:
- The continued development of Coega Industrial
- Beijing Automotive Group Co. from China making a R11 billion investment into a vehicle manufacturing plant in Port Elizabeth, to become operational in the fourth quarter of this year
- The planned investment of R10 billion into expanding Mercedes-Benz South Africa’s manufacturing plant in East London.
With improved economic confidence in the region, buyers are willing to consider its cities and smaller towns as a place to settle. According to Sandra Gordon, Pam Golding Properties senior research analyst, “The relative affordability of homes in these metros, combined with the coastal lifestyle offering, may well explain the appeal of these housing markets for young families and first-time buyers.” With the average asking price of houses in the Eastern Cape at R826 479, fourth behind Gauteng, the Western Cape and KwaZulu-Natal, it’s no surprise this coastal province is attractive for young adults looking to settle down. With Pam Golding Properties, we take a look at the province’s major areas and how the property market is looking up.
With its attractive suburbs, family-friendly beaches and top schools, Port Elizabeth is increasingly becoming a firm favourite for young couples looking to buy. Popular suburbs include Walmer, Mill Park and Summerstrand, with developments popping up to meet demand.
With the extra investment in Mercedes-Benz, East London is forecast to see a large number of employees moving to the city on contract from overseas and needing rental properties. The extra demand should see an increase in supply.
St Francis Bay
This small coastal town, synonymous with holidaymakers and surfers, is increasingly becoming an attractive investment for those seeking a quieter lifestyle away from the city. Pam Golding Properties area principal, Richard Arderne, reports that the average price of properties along the canals has doubled between 2012 and 2017, and describes the market as buoyant.
Another small coastal town, Port Alfred is the perfect location for those looking for good value for money. Offering affordable property and a peaceful lifestyle, it's an attractive opportunity. With the recent upgrade of the R72 between Port Alfred and East London, demand has increased for rentals as many contractors working in East London want to stay in Port Alfred.
Recent investment into the Eastern Cape has shown a clear increase in the demand for property. Whether you’re looking at buying or renting, there are a number of estate agents in the Eastern Cape who can point you in the right direction and help you find the right property in this friendly coastal province.