Pe Market Bottoming Out

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02 Mar 2009

Over the past year, Port Elizabeth's property market has flattened out, with buying and selling taking place at much lower levels than previously.

So says Di Allan, principal of leading local agency Homenet, who adds that "price counselling has become the norm and sellers have had to lower their expectations".

"A number of families have also moved in together and are leasing out their other properties in an effort to cover costs.

"However, buyer sentiment is improving in the wake of the two interest rate cuts since December. The prospect of being a 2010 host city is also doing much to lift the general property outlook. The Sydenham stadium is nearing completion, and the related infrastructure and investment has already generated positive spin-offs for the immediate property market."

Other factors that will contribute to a quick turnaround, she says, include stable property values, a strong holiday season performance and the fact that development and investment in the city has continued relatively unabated.

For example, major plans to open up Walker Drive in Sherwood are in progress and a sizeable shopping centre has already been constructed in the area, while land has been earmarked for further mixed-use development.

Currently, freehold property values in the city are holding firm at an R850k, entry-level and sectional title homes are selling for an average of R700k.

Stand buying has also become popular as evidenced by swift sales recently at Kamma Heights, Bluewater Bay and Parsons Vlei as buyers look to acquire their land now while prices are still relatively low, and build later. The stands have the basic utilities in place and typically measure between 400 and 600sqm. Prices start at R250k depending on location.

For more information contact Di Allan on 041 922 6161 or click here to visit the website.

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