A relaxed coastal atmosphere and minimal crime have long ensured that the Eastern Cape town of Port Alfred remains a sought-after destination among South African and overseas holiday makers alike. 

Now these same attributes are at the heart of a new trend which is seeing growing numbers of families relocating to the area – even if it means commuting to work in Gauteng or Cape Town.

That’s according to David Palmer, principal of IPC (International Property Consultants) Port Alfred, one of more than 200 members of the giant National Referral Network (NRN).  Commenting on the steady influx of families to the town in recent years, Palmer says it’s no longer unusual to sell primary residences to people who utilize them mostly on weekends and during the school holidays. 

“The safety and tranquility of Port Alfred is proving to be a major draw card for people who are prepared to commute long distances during the week in order to ensure a quality lifestyle for their families,” says Palmer.  “In these circumstances, the breadwinners very often work away from home, either in the major cities or even abroad, while the children attend boarding school in Grahamstown.“

Aside from these buyers, Port Alfred’s real estate market is also enjoying steady support from ex-patriot South Africans who have started to fill the gap left by overseas buyers whose presence in the area tapered off when the rand started regaining its strength 18 months ago.  Newcomers to the area are also encouraging market activity as a result of taking up positions at the 43 Air School, or in the local retail and building sectors, both of which are flourishing.  But, he notes, take-up of properties at the top end of the market has slowed, even among wealthy businessmen and holiday home buyers, who have been noticeably shopping for less expensive properties in recent months.  Market movement is now almost entirely concentrated in the R500 000 to R800 000 price range, with the cut-off point for activity in most instances being anything over R1 million. 

Currently there is little stock under R500 000, he adds, the minimum amount required to buy a two bedroom townhouse.  Typically, demand for more affordable properties has led to a dearth of stock in this price range.  But there is light at the end of the tunnel in the form of a new sectional title residential development called Croydon Place, which is on track to come out of the ground early in 2007 and will be jointly marketed by his company.  “This will offload 33 units priced from R500 000 on to the market, which will help alleviate demand from investors, holiday home and entry level buyers and those wishing to downsize,” he says.

This is just one of many new projects currently underway or in the pipeline, says Palmer, a situation that has led to the Port Alfred economy being predominantly driven by the building and allied industries.

Already enjoying better-than-expected results for the first half of the year, Palmer predicts a strong second half – provided the interest rate remains stable and sellers accept that affordability is now the key market driver in the local real estate sector.

According to NRN member Karen Carlson, manager of Acutts Port Alfred, although there has been notable resistance to overpricing in Port Alfred as with the rest of South Africa, they are still dealing with discerning buyers who are even now able to find value in properties in the area.  At the moment, local stock on the market includes a number of well-priced homes, from two bedroom lock-up-and-go units under R500 000 to “stylish and substantial three bedroom townhouses, for around R1, 3 million.  There is also a selection of luxurious beach houses priced from R3 million and upwards, and vacant stands of over 750 sq m from R300 000.  “This has lead to a thriving building industry, with several exciting developments in the planning stage,” she says.  “The astute investor should therefore take advantage of the current situation in which people are choosing properties within their financial constraints.”

Ends
 

Written by Ingrid Smit
Tel: (011) 393 4493 / 082 657 6530

For National Referral Network (NRN)
Chairman: Mr Terry Brookes 083 566 3166 or (021) 701 5555
Website: www.nrn.co.za

IPC Port Alfred: This email address is being protected from spambots. You need JavaScript enabled to view it. ; This email address is being protected from spambots. You need JavaScript enabled to view it.
Acutts Port Alfred: Karen Carlson   This email address is being protected from spambots. You need JavaScript enabled to view it.