So says Taki Kondylis, principal for Seeff in East London, who adds that bank refusals are still plaguing the property market in this Eastern Cape town.
"There are a high amount of refusals by the banks, despite the glowing news in the media. It's worse than it used to be. If the banks don't reject the buyer, they reject the property as being overpriced, or vice versa."
Notwithstanding this dour trend, he says the East London property market is excellent with sales picking up across the board. "In terms of residential property, houses and townhouses are selling incredibly well. There are plenty of entry-level buyers, with those in the mid-range and the upper-end is also seeing significant activity. The price range between R900k and R1,5m is seeing the most movement."
He says prices are definitely rising and so are sellers' expectations. "But these high prices aren't always followed by results."
"East London has totally discarded its image as a Cinderella region. Its strategic location and the upgraded east-west coastal road has opened up access to its markets and its labour resources, while the well-established infrastructure and port has attracted investment from leading multinationals such as Daimler Chrysler," says Mario Raffa of CENTURY 21 Silversky.
Raffa says local property market growth has indeed been affected by the general economic slowdown, but that various initiatives such as the East London Industrial Development Zone have cushioned the worst of the effects, and that "there are now definite signs of a recovery with better attendances at show days, more deals being signed and an improvement in prices".
He notes that in the Esplanade area, for example, there is now good demand for newly developed apartments, and that investors are active in buying older beachfront properties and converting them into upmarket guest houses.
"Moreover, nearby Quigney is seen as becoming an avant-garde area similar to the likes of Sea Point and Woodstock in Cape Town or The Bluff in Durban, and refurbishments and upgrades characterise that area right now.
"As for the sectional title market, there is limited stock and strong demand. Developers would do well to take note of the opportunities represented by older highrise apartment blocks along the beach and beach homes on good size stands, some of which are adjacent to hotels and restaurants."
Freehold property is also doing reasonably well, Raffa says, notably in Vincent, Berea, Nahoon, Beacon Bay and Gonubie.
Hanlie Bassingthwaighte, principal for Pam Golding Properties (PGP) in East London, says there is currently a big rental demand. "There are still loads of people not able to afford a property and this is spurring the demand for rental properties. Properties between R3k and R6k per month are most sought-after right now."
She concurs with Kondylis that the banks' lending policies are a huge impediment to lower-end buyers entering the market. "The banks are still quite risk-averse as far as these buyers are concerned." – Eugene Brink
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