Uitenhage, the automotive hub of the Eastern Cape, is also becoming a sought-after residential zone as the property market becomes increasingly affordability-driven and buyers adjust their mindsets regarding traveling distances and desirable locations.
Explaining her decision to open up in Uitenhage, Vinita Gouws, co-principal of both Realty 1 International Property Group in Port Elizabeth and her newly opened branch in Uitenhage, said the entire Eastern Province had been earmarked by government as a key area for growth and economic development, owing to the presence of a good road, rail, harbour and airport infrastructure.
She said this support was evidenced in the government's Motor Industry Development Programme (MIDP), pointing out that South Africa's automotive component manufacturing sector had exported more than R30bn worth of products in 2006, according to the National Association of Automotive Component Manufacturers (Naacam).
In addition, she said the town's economic growth was further aided by various industrial development initiatives, the largest of which was the Coega Industrial Development Zone (IDZ). These were all combining to ensure the area's status as a prime manufacturing and export zone, with the spin-off being job creation and rising demand for local property.
Saying that Uitenhage property was generally less expensive than that of nearby Port Elizabeth, Gouws said home buyers were relocating in search of better value for their money or because they wanted to be closer to their workplace.
"It's a short 30km between Port Elizabeth and Uitenhage, which makes commuting viable and in so doing gives buyers the option of less expensive homes," she said, noting that transmigration was a growing trend between the two towns as new factories opened up and roads were developed and improved.
This trend was particularly prevalent among people living in Port Elizabeth and traveling to Uitenhage and back every day, she said. "We're seeing a steady number of people selling up in Port Elizabeth to reduce driving time and petrol costs.
Harry Nel, manager of Realty 1 IPG Uitenhage, says the town's low entry-level pricing - between R500k and R600k for a standard three-bedroom house - is particularly attractive to investors and first-time home owners.
"Houses in Uitenhage with price tags of more than R600k tend to offer substantially more features than similar-priced properties in Port Elizabeth," he says.
"This is making upgrading to bigger and better homes in the Uitenhage and Despatch metropole attractive and affordable." – Ingrid Smit
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.
