Despite consecutive interest rate hikes and the implementation of the National Credit Act (NCA), key growth areas throughout the country, such as Port Alfred in the Eastern Cape, are still growing strongly.

Heather Tyson of Lew Geffen Sotheby's International Realty Port Alfred says July and August of this year were record months for property sales in the area. Lew Geffen Sotheby's International Realty's sales of R19,5m in August, for example, compare with R5,3m in the same month in 2006 – an increase of over 250%.

"Previously, serious buyers would try to get in just before or just after the end of year festive season, on the assumption that sellers inflate prices over the season. But now that Port Alfred has been 'discovered', it is simply a case of supply and demand," she says.

Tyson notes that most of the properties were sold on the popular Royal Alfred Marina, with the highest price for the area being recorded in respect of a R7m property in July, followed by a R6,2m marina property sold in August.

Tyson notes that the marina is now virtually sold out with only a few properties and vacant stands still available. But she says that the next growth area is likely to be the beachfront properties.

"In addition to the big sales, we have also concluded a number of sales of vacant land, and of units and houses in the R1m price range. Given Port Alfred's location as a coastal city in the heart of the sunshine coast, and mid-way between Cape Town and Durban, we are confident that the property growth trend will continue," she concludes.

Barak Geffen, executive director for Sotheby's International Realty, confirms the improvement in sales in respect of key growth areas throughout the country.

"Apart from Port Alfred, places like Knysna, Somerset West, Plettenberg Bay and Umhlanga, for example, continue to perform exceptionally well. We are continuing to see a large amount of activity in the market and believe that foreign interest in the run-up to the 2010 Soccer World Cup will further boost the outlook for premium property at the top end of the market," he says.

For more information contact 082 320 0121 or Click here to visit the website.

Readers' Comments
Have a comment or question about this article? Email us now..

Get up-to-date property news
Would you like to receive free weekly news and information about property in South Africa? Sign up now for Property24's Week in Review.

Property News
Click here for more property news articles.

Need a blog?
Start your own blog with a free blog from 24.com.