Uptick in coastal property market
ALONG with the breezy summer days, an uptick in the coastal residential market has been experienced. Property agents report that especially the local leisure market has, during the past holiday season, picked up among holiday and retirement buyers.
Port Elizabeth PGP area principal Ian Olivier said interest in coastal property definitely increased this summer, particularly homes with a sea view and generally priced up to around R2-million.
"You can even buy a front line home for under R3-million. We recently sold a two-bedroom home, built in the 1950s, for R1.7-million which the new owner then demolished in order to build a beautiful modern home – a frontline property in Seaview," Olivier said.
Olivier said the majority of the buyers were locals seeking primary homes, those from upcountry and the Western Cape relocating for business reasons or for a better lifestyle, or investors seeking a home to retire to in the future. Overseas buyers from Germany, United States and even the Philippines are also grabbing Port Elizabeth's leisure properties.
Jaco Rademeyer of Jaco Rademeyer Estates said sales for the first quarter of this year were double what they were for the same period last year: "It is still a buyer's market and, especially in our area, there are many great deals out there. For anything from about R2-million to R3-million one can find a spacious home with sea views. Port Elizabeth is also becoming more economically active, with lots of investment at Coega, the building of the massive Baywest Mall, and the recent upgrading of Walmer Park. This means that, along with the game parks close by, we no longer play second fiddle to other leisure destinations like Cape Town and Johannesburg."
RE/MAX Independent Properties, Walmer, manager Christo Slabbert said the company recently sold a house in Kini Bay on the beach for R3-million, with the purchaser subsequently investing a lot of money on the property to modernise it.
"The demand for property in Port Elizabeth is currently exceeding the supply and we are working with a lot of buyers... RE/MAX Eastern Cape and Garden Route showed a 52% growth in sales volumes compared to 2012," Slabbert said.
Elsewhere in the Eastern Cape, Kenton-on-Sea PGP area principal Michael Wilmot also reported an increase in enquiries and activity with locations most in demand being Kenton and Cannon Rocks with this year's January being the best month since May 2012.
"Most importantly, the demand is for well-priced properties offering sound value for money. In Cannon Rocks and Boknes there is a demand for front row properties under R3-million, as well as for inexpensive, vacant land under R200000, the latter from cash buyers. Purchasers are mainly from Gauteng, the Western and Eastern Cape, and Free State – from those seeking holiday properties to some looking to acquire retirement properties. Interestingly, in Cannon Rocks we have noted an increase in overseas visitors out of season, specifically Swiss and French kite surfing enthusiasts," Wilmot said.
St Francis Bay PGP had its best summer season in years and doubled its turnover over the past 12 months (to February this year). The combination of building activity after the canal fire in November 2012, idyllic weather, and extensive marketing resulted in a number of sales all over the greater St Francis Bay area, said St Francis Bay PGP area principal Richard Arderne.
"The sales ranged from a 20ha smallholding 10km upstream on the banks of the Kromme River, as well as a few plots on St Francis Links, and numerous houses and plots on the canals... all the way to Cape St Francis, where we experienced particularly strong demand". - Cindy Preller
