Property market in buoyant territory

Posted On Tuesday, 09 July 2013 20:54 Published by Commercial Property News
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The East London property market was turning to 'buoyant' territory bolstered by growth in the local automotive industry and black buyers making investment purchases.

Hanlie Bassingthwaighte Pam Golding PropertiesThe East London property market was turning to “buoyant” territory bolstered by growth in the local automotive industry and black buyers making investment purchases, high-end realtors said.
Pam Golding Properties local area principal, Hanlie Bassingthwaighte, said black buyers who were scaling up were contributing to the increased demand in houses priced at in excess of R1.5-million. Locally based Lew Geffen Sotheby principal, Lofty Nel, said high-end house prices in East London dropped by between 10% and 15% in that period versus a decline of up to 30% in Johannesburg, Cape Town and Port Elizabeth. He added that East London was lagging behind the national trend by six months. Nel said demand was driven by astute businesspeople many of whom were black.
“Many of the people buying on the high-end come from the Transkei and work in big JSE-listed companies. They know that house prices in the high-end of the market are not going to drop any further than they had in the past three or four years [following the onset of the global recession],” said Nel. “Many are buying for the parents and relatives who raised them as a sign of gratitude or want to relocate their families to access schools. They commute between cities to be with their families on weekends.”
Bassingthwaighte said expected growth in the local industry was bringing in new high-end buyers to East London. “The residential property market is buoyant. We are seeing a number of black buyers relocating into the area from out of town, and continue to experience a demand from those from the Transkei and King William’s Town seeking to acquire second homes in East London.
“A positive factor impacting on our local property market is the commitment and continuing expansion of companies such as Mercedes-Benz South Africa [MBSA], which helps fuel the residential market.”
MBSA manufactures the Mercedes-Benz C-Class model for the local and US markets and also produces Mercedes-Benz commercial vehicles and buses, FUSO trucks and Freightliner trucks. Many supply companies to Daimler are also situated in East London, further contributing to the local economy, Bassinghwaighte said.
“We are finding that serious sellers are also better informed and, realising the true market value of their properties, do not have unrealistically high expectations. In turn, buyers understand that there is now not so much stock on the market. “This has also had the effect of prompting those who had been sitting on the fence, waiting for the market to change, to accept current trading conditions and make buying or selling decisions,” said Bassingthwaighte.
PGP East London has just sold two properties in Nahoon mouth, a four-bedroom, four-bathroom home in a gated estate, which fetched R5-million, and another four bedroom property which sold within a week of listing for R3.65-million.
Last modified on Tuesday, 09 July 2013 21:18

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