Real estate in the Port Elizabeth region is a burgeoning market in unprecedented times. As a whole, the property industry has experienced many unforeseen changes due to the global COVID-19 pandemic, including a record-low interest rate. By far the most surprising development has been the dramatic switch to a seller’s market. With many people seeking refuge in quieter cities, as well as a growing desire for simpler lifestyles, investing in the PE property market could provide an ideal solution.
“Port Elizabeth offers an incredible scope of property growth potential, “the Friendly City” provides both a simpler way of life as well as favourable investment opportunities,” said Harcourts South Africa CEO, Richard Gray.
The pandemic’s impact on the market has certainly given many first-time buyers the chance to enter the market and by the same token encouraged savvy investors to buy property in PE. Nikki Strooh, Harcourts Beachfront Principal shared some examples from recent sales and weighed in on the market shift, “This is creating unique opportunities for buyers and investors.” Below are some instances of this, shared by Strooh.
- A one-bedroomed unit in Palladium, Humewood has been available to rent for R 5,000. This property sold for R 620,000. The bond instalment, without putting down any deposit is only R 4,806 – a saving of R194.
- A loft apartment in Humewood Gardens, Humewood Extension is selling for R 450, 000, which asks for an R 3,488 instalment on a 100% bond. This same property is advertised to rent at R 4,600 – a saving of R 1,112.
- A townhouse in Kingston Mews South, Sherwood is being rented out for R8,200. The going price to buy one of these units is R 920,000. The bond instalment would be a mere R7,132 – a saving of R 1,068.
“We have to understand that the current economic environment, paired with the value in the market have catapulted real estate into the forefront of fantastic ROI opportunities, especially in the Beachfront area of Port Elizabeth,” said Strooh.
“There are many developments in the pipeline for the region, and buyers who choose Port Elizabeth are sure to enjoy both lifestyle and value,” Richard Gray added.
While Port Elizabeth has always been an idyllic setting for those seeking slower-paced living, the current repo rates have triggered a heightened interest in the property market. The implications of COVID-19 have clearly brought about many changes in the real estate industry. However, these circumstances have perhaps opened up a window of opportunity that will see the housing markets in smaller towns like Port Elizabeth flourish.