What is happening in the Eastern Cape property market?
Category AREA FOCUS
The Bureau for Economic Research and Lightstone Properties have recently brought out research on business in general and on the property market, which makes interesting reading.
Although I am not an economist I am interested in trying to understand economic research reports which take the emotion out of markets and focus on what is actually happening in the various markets. Having said this the Bureau for Economic Research does base their findings on surveys they carry out and these are completed by people who may have some emotional bias.
In summary the news is:
- Business confidence is down but not as much as it was in the last quarter;
- Rental growth is slow;
- While the volume of sales in the Eastern Cape have increased at 10.4% sales values have only increased by 6.5% which would indicate that house prices are declining;
- Building plans passed this quarter have declined; and on a more positive note
- the CPI (inflation index) is under control at around 5%.
These statistics are general and do not apply uniformly in all markets.
Our experience is that in Grahamstown the market is particularly weak as a result of a failing municipality. In Port Alfred we are seeing increased activity but without much movement in prices. This surprises me as Port Alfred has so many attractions: the sea, the river, a flying school, Marina and golf course just to mention a few. If I was a betting man I would say that Port Alfred offers the best value in the region!!
Kenton On Sea seems to be bucking the trend with prices in desired areas reaching record heights and there is a lot of building activity. Boesmansrivier, Boknes, Cannon Rocks and Alexandria are also showing growth.
Naturally at "Election Time" we are all uncertain of how the election will impact on our lives. I must say I have a very good feeling about these elections and think that while we may have a bumpy road leading up to the elections and after them while parties jockey for coalition positions, this will be the start of a new and positive era for our country.
Remember I am an optimist!! I would love to hear your views. Please contact me on firstname.lastname@example.org or 082 653 5643. I look forward to hearing from you.
Author: Simon Oliver