Well-priced homes move fast in East London

Anne Chegwidden, Broker/Owner of RE/MAX Sunshine Coast, reports that there has been an increase in buying activity in her areas of operation, which covers East London and surrounding locales from Kaysers Beach, Kidds Beach, Gulu and east along the coast as far as Morgans Bay and Haga Haga. However, she says, buyers are unfortunately having difficulty in obtaining mortgage finance.

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that affordability will continue to play a critical role in the property market. “Potential buyers would therefore do well to ensure they keep a clean credit record, even though financial institutions have gradually begun to loosen their lending criteria,” he says.

Chegwidden’s office also sells in the local areas such as Beacon Bay, Nahoon, Vincent, Stirling and all other central areas. Here, she says, if a home is correctly priced, or if the seller is willing to negotiate, the property is sold within one to two months. However; the average property sits on the market for four months and the demand remains between R800 000 and R1,2m.

“Depending on the area, entry-level homes sell between R450 000 and R700 000, while middle of the range homes sell from R800 000 up to around R1,8m,” says Chegwidden. “And while there are homes available up to R10m, we do not have buyers or stock in this price range.”

She says that these are good locations because they are close to schools, hospitals, shopping complexes and a range of other amenities. “Many of the properties will also be re-zoned in future and become business properties, thereby increasing in price, and continuing the cycle of demand.”

Looking at trends in the area, Chegwidden notes that there are numerous homeowners wishing to sub-divide their properties, unfortunately, she says, the municipality is very slow in processing the requests for a number of reasons. “Many homeowners are also renovating their property, either to make the homes into rentable units or just for a general upgrade as opposed to moving.”

Chegwidden believes that despite affordability and finance challenges, the South African property market will continue to grow at a steady rate.

Article by: www.remax.co.za