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Luxury housing development a push for NMB property sector
Posted on: Thursday, 17 August 2006. Article source: The Herald
ANOTHER luxury residential property development is being erected overlooking the Baakens Valley, possibly sounding the death knell of the city as an affordable property destination.
Pambili Property Developments, a family-owned business with offices in the city and East London, is developing the seven-storey, R75-million Echo Edge development on a site adjacent to Greenwood Primary School, a short distance from St George‘s cricket ground.
Sixty sectional title apartments will be built, with prices ranging from R800 000 for a 59m˛ one-bed loft to R4-million for a 285m˛, four-bedroomed penthouse.
Royden Thompson of Pambili said yesterday that 21 of the initial 26 units had already been sold. He planned to complete these units, including the superstructure of the building, within 12 months.
The interior of the remaining units would then be completed as they were sold, he said.
First National Bank property economist John Loos believes the market will be able to bear these hefty prices, despite its traditionally lower incomes. “It being a coastal and a holiday town, one would probably be making a mistake merely taking the metro‘s own purchasing power to determine the size of the market,” he said.
“Despite the Eastern Cape‘s per household average income being only R50 550 in 2004, less than half that of the Western Cape and Gauteng, the average house price for the province at the time (R527 483) was not that far off the average R655 865 of the Western Cape.”
Loos said this was driven partially by the smaller supply base of housing stock in the province, as well as “up-country” investors buying holiday homes or property for investment.
Thompson said a number of units had been bought by people ostensibly buying a retirement property.
Sheridan Pollock, a residential property broker associated with Mike Bosch Properties, says Port Elizabeth was likely to see more developments of this nature and price bracket.
This was based on the healthy state of the local property market as well as local developers identifying the opportunity in the market.
She said that while most buyers, 60% to 70%, would be from outside Port Elizabeth, a number of local businessmen had realised the investment potential.
These investors were now also likely to take a longer-term view on the market – three to five years.
Pambili Property Developments, a family-owned business with offices in the city and East London, is developing the seven-storey, R75-million Echo Edge development on a site adjacent to Greenwood Primary School, a short distance from St George‘s cricket ground.
Sixty sectional title apartments will be built, with prices ranging from R800 000 for a 59m˛ one-bed loft to R4-million for a 285m˛, four-bedroomed penthouse.
Royden Thompson of Pambili said yesterday that 21 of the initial 26 units had already been sold. He planned to complete these units, including the superstructure of the building, within 12 months.
The interior of the remaining units would then be completed as they were sold, he said.
First National Bank property economist John Loos believes the market will be able to bear these hefty prices, despite its traditionally lower incomes. “It being a coastal and a holiday town, one would probably be making a mistake merely taking the metro‘s own purchasing power to determine the size of the market,” he said.
“Despite the Eastern Cape‘s per household average income being only R50 550 in 2004, less than half that of the Western Cape and Gauteng, the average house price for the province at the time (R527 483) was not that far off the average R655 865 of the Western Cape.”
Loos said this was driven partially by the smaller supply base of housing stock in the province, as well as “up-country” investors buying holiday homes or property for investment.
Thompson said a number of units had been bought by people ostensibly buying a retirement property.
Sheridan Pollock, a residential property broker associated with Mike Bosch Properties, says Port Elizabeth was likely to see more developments of this nature and price bracket.
This was based on the healthy state of the local property market as well as local developers identifying the opportunity in the market.
She said that while most buyers, 60% to 70%, would be from outside Port Elizabeth, a number of local businessmen had realised the investment potential.
These investors were now also likely to take a longer-term view on the market – three to five years.
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