The boom in residential properties is still to hit East London and surrounding areas, says South African property consultant Ian Fife.

"This is the last place in South Africa that is still to be discovered," said Fife, who also edits the property section of the Financial Mail.

Fife, who visited the city as guest of national property managers Trafalgar said an area like the Quigney was just waiting to be grabbed by property developers.

He said the city's real property prices adjusted for inflation were 37 per cent lower than they were at the peak of the last house boom in 1984 and could exceed that peak within two years if prices continued rising at their current rate.

He said, however, this did not mean that a price bubble in the city was going to burst then and added the market was still recovering from 30 years of political and economic instability.

"During this time, it missed out on two world-wide property booms, in which real property prices have risen dramatically. For instance, British house prices adjusted for inflation have risen on average 2,5% a year for 20 years."

Fife said according to Absa Bank the current average price of a house here was R417000, below the national average of R488000.

At the peak of the last boom the price was R64 000.

"It is more important right now to become a homeowner than to avoid the market in case the bubble bursts," said Fife.

Fife said around the world "the home is becoming the pivot around which the wealth of ordinary people" is being created and was “the natural first step in building wealth”.

"They also need very little initial capital because they can borrow up to 108% of the purchase price at interest rates less than many large corporations pay for their borrowings."

"Understand the open secret of property wealth - there is no need to rush or take unnecessary risks. Relay on the compounding effect of holding property over decades to build wealth and passive income steadily over the years, and ultimately achieve financial freedom."