Market on the Boil in Port Elizabeth
Category SA Property Market
Several large commercial and industrial investments in the pipeline for Nelson Mandela Bay metro are expected to bring about a significant increase in employment when they come on stream – and a concomitant rise in activity in the local Port Elizabeth real estate market.
“However, we have already experienced a 138% growth in sales over the past 12 months, and a 10% increase in the average deal size,” says Charlotte Vermaak, principal of the Chas Everitt International franchise in Nelson Mandela Bay, who says a key trend at the moment is that of existing homeowners wanting to upgrade to bigger properties or move closer to the top-rated schools.
“And this is being underpinned by a massive influx of first-time buyers and the movement of many ‘black diamonds’ from township homes to properties in the traditional suburbs, so we have confidence in the upturn in the market and anticipate a clear road ahead for sales in 2015.”
The Nelson Mandela Bay market has always been reliant on salaried individuals, she says, and with the Coega Industrial Development Zone (IDZ) continuing to attract new manufacturing companies, an increased demand for homes is to be expected.
“In addition, the city of Port Elizabeth is earmarked for massive developments such as the Baywest precinct on its western edge, which will be rolled out over the next 10 to 15 years.
“The Baywest Mall, due to open in April, is just the first phase of the Baywest City development, which will eventually encompass 4000 new homes, secure office parks, hospitals, a light industrial node, parklands and conservation areas, and is set to rival Sandton and Century City when completed.”
Another ground-breaking development, Vermaak says, is the new suburb of Westbrook, a 160 000sqm mixed-use node with medical facilities, retail facilities, a business park, a private school and a public square as well as a residential area.
“Then there are several affordable housing developments under way, including the Walmer Links and Sakhasonke Village projects which together offer about 1200 units for people earning salaries of R1500 to R15 000 a month, and the R6bn Coega Ridge development which is expected to reduce the city’s 80 000-unit housing backlog by more than half.”
Smaller housing developments, she says, include one in Salisbury Park that will provide 70 freehold two- and three-bedroom homes priced at between R679 000 and R889 000, as well as two projects in South End.
“The first of these is the Shumbalala Estate, where two-bed and three-bed homes are being sold now at prices between R770 000 and R1,327m, and the second is Stanbury Park, a new retirement village with frail care facilities where units are selling at prices from R799 000 and R1,47m.
Issued by Chas Everitt International
For more information, contact
Charlotte Vermaak on +27 41 396 9800
Author: Barry Davies