Amid the worst property trading conditions experienced in South Africa since the interest rate crisis of the late 1990s, the Eastern Cape's housing market has proven the most stable of all the regions, and is now poised for growth, says Dr Andrew Golding, CE of the Pam Golding Property group.


"Having steered a relatively even course through somewhat turbulent trading conditions and bearing in mind that the residential property market is largely driven by sentiment and perception, it is apparent that the Eastern Cape rates well in the minds of most home owners who have also had to contend with the challenges of stringent bank lending criteria and the National Credit Act," says Golding.

"This region is also seen as a relatively safe environment, with property values that are reasonable, with a good chance of escalation for the future. With family lifestyle playing an increasingly important role in determining people's choices, the Eastern Cape has excellent educational institutions, a factor which attracts families from South Africa and beyond."

 He says that Port Elizabeth and the immediate surrounding areas provide ideal facilities for these families, including a healthy variety of activities, like water and other sports, wonderful clean beaches and cycling trails. In the past financial year Pam Golding has broken its previous record of R6.2 million sale on a single residential property.

Andy Collett, regional manager for PGP in the Eastern Cape, Garden Route, Karoo and Kalahari, says across the region homes in the R600 000 to R1.6m price range are attracting the most attention. "Exceptions are found in Knysna, where prices average between R2.5m and R3.5m (without sea views) with exceptional properties sold from R7m to R14m at Simola.  Pezula and The Heads in Plettenberg Bay where prices average from R3m to R4m with a plot on Beachyhead Drive near Robberg sold for R5m; and also in St Francis Bay, where a house on the canals sold for R6.7m in December."   Collett explains that there is a surge in demand in East London, where sales have shown a significant upturn since December, with 20 homes sold for a total R22.3m in January in the region.

Recent confirmation of the massive PetroSA refinery and attendant industries provided the tipping point for this along with the recent R40 billion in export orders for Volkswagen SA. Collett says these are positive signs that the Eastern Cape house market is recovering. Inquiries are once again being received for leisure properties, mostly priced below R2m and along the Sunshine Coast from St Francis Bay to Port Alfred, signaling a much-improved summer season. "Discerning investors with residential property portfolios have also become active, snapping up lower-priced sectional title units mainly in the price range below R l million, which yields good returns due to a buoyant rental market," he concludes.