This is according to the South Africa Property Transfers Guide (SAPTG). The much coveted suburb has recently sold property along its river banks at record prices with one plot selling for R2.5 million late last year.
Carlisle Snyman, principal of Engel & Völkers, said the increase in property values in Nahoon was boosted by commercial property sales. The suburb has recorded sales in excess of R5m, he said.
“There has been an increase in the sale of properties with office and business rights due to zoning in certain streets. Some properties with low intensity office rights can fetch up to 60% higher than their comparable residential counterparts just a few streets away,” said Snyman.
According to SAPTG, Nahoon average property value surged by 30.24%, despite the dip of 37.84% in transfers.
A snapshot of East London suburbs including Amalinda, Gonubie, Mdantsane, Sunnyridge and Beacon Bay showed prices fell by 7% percent on average in 2008, says SAPTG.
Anne Chegwidden broker and owner of RE/MAX Sunshine Coast said even though the demand was falling matching the national trend Nahoon was still relatively hot property.
“It is close to the amenities and also close to the famous Nahoon Beach. A number of clients are also spending money upgrading their homes, thereby increasing value,” said Chegwidden.
The total number of transfers in the City fell by 16% according to the SAPTG analysis and a snapshot of East London suburbs.
This however excluded transfers for properties valued below R150000 and in excess of R10m and those below R80000 for Mdantsane.
SAPTG’s property data specialist, Dieter Deppisch, said increased awareness of the importance of wealth creation had boosted the property market in Mdantsane.
Deppisch said Mdantsane reflected the national trend for lower income areas showing “significant growth, 21% in volumes and 8% in average value”.
“More and more previously disadvantaged persons are empowering themselves through diligent work ... purchasing their first home or upgrading from RDP housing. The increasing value will add impetus and inspire still more to do the same,” Deppisch said.
In contrast, prices in Beacon Bay and Amalinda North fell by 6.67% and 12.37%, and West Bank fell by 1.73% in line with the national average as reported in the First National Bank house price index for December 2008.
Sue Brownlie of Landvest Real Estate said Beacon Bay property prices were falling due to the high volume of properties for sale in that area.
Chegwidden added that traffic congestion was making the suburb less attractive, while other suburbs offered value for money.
“I believe the general state of the market as well as the ongoing traffic congestion because of schools remains an obstacle for some purchasers” said Chegwidden.
Transfers in Gonubie were down by a substantial 44.83% and Sunnyridge by 54.29%, indicating a fall in demand, but the value of property in these suburbs rose on average by 18.8% and 2.7% respectively in 2008.
