Investors and young home buyers favouring Gqeberha

With R127-billion’s worth of investments earmarked for the Eastern Cape across an array of sectors and spanning a significant portion of districts, Gqeberha is seeing an influx of home buyers and investors, as well as renters, relocating to Nelson Mandela Bay Municipality from Gauteng.

Investment projects in Nelson Mandela Bay include a R3 billion auto manufacturing plant for Stellantis, R105 billion green ammonia plant for Hive Energy, R4 billion investment by Volkswagen in its manufacturing plant in Kariega for the addition of a third model to its production line-up from 2027, R13.6 billion in a Liquified Natural Gas terminal, R510 million expansion by SA Breweries, R2.7 billon in a solar power plant for Parson Power Park, R150 million by a global technology company – Jendamark Automation, R114 million to increase assembly capacity for Mercedes-Benz, and some R1 billion investment by cannabis consulting firm Medigrow over the next five years, among other major investments in the Eastern Cape.

Says Justin Kreusch, an area principal for Pam Golding Properties in Gqeberha: “Apart from the lifestyle factor which attracts new residents to Gqeberha, currently a large number of Gauteng and other buyers appear to be relocating for work – many of whom are looking to rent first and then buy once they have familiarised themselves with the area. Aside from newcomers to the area, we find that many sellers already residing here are or become repeat buyers in the city, especially younger buyers in their late 20s and early 30s, as well as those up to around 50 years of age.”

Notably, according to ooba Home Loans, the Eastern Cape has the second-highest percentage of applications for investment / buy-to-rent properties at 15.2% during the first 10 months of 2024, and also recorded the strongest demand for holiday homes at 1.3% of applications during the same period, compared to 0.35% for SA overall.

Says Kreusch: “The bulk of those relocating for work are between 30 and 50 years of age, including professionals in the medical industry and engineers, as well as those employed in the vehicle industry and moving with their families. We have also placed quite a number of individuals and families who have relocated here with the new Shoprite Distribution Logistics Centre.

“For those moving regarding the Shoprite facility, Bluewater Bay has been their choice given its proximity to the depot, while for other professionals the areas of Walmer, Lorraine and Mill Park are preferred because of their close proximity to places of work and amenities.

“Interestingly, we are also seeing a number of families relocating here from the Cape, with the reasons cited that Gqeberha offers the same appealing coastal living but with an improved lifestyle – with no traffic issues due to the low traffic volumes and thereby saving travel time, and at a much more affordable rate with excellent value for money homes, especially at the top end. There are great beaches, coffee shops, restaurants, hospitals and local schools, with private schools in Makhanda also an option, while there is also easy access to the Garden Route and attractions such as Addo Elephant Park and Mountain Zebra Park.”

Kreusch says homes to rent catering for this market range from around R18 000 to R25 000 per month, while residences to purchase vary from R2.5 million and up for apartments through to family homes. At the top end of the market, Little Walmer Golf Estate remains sought-after from a lifestyle perspective coupled with its central location with easy access to local amenities and state-of-the-art security, with prices starting from R5 million.

In the luxury market, Pam Golding Properties recently concluded the sale of a luxurious, five-bedroom home in Summerstrand for R23 million, to a buyer from the Northern Cape who has invested more than double that in residential property over the past five years. The buyer has acquired the property as a primary residence.

Says Kreusch: “However, there are also numerous affordably priced complexes around town, and a variety of established suburbs that still offer good opportunities for home buyers. For example, a two to three-bedroom sectional title unit of 80-120sqm can be acquired for approximately R700 000 to R1.2 million, depending on condition and position. There are numerous options in this bracket in the suburbs of South End, Lorraine, Sherwood, Kabega, Parsons Vlei and Westering. Lorraine is centrally located in proximity to good schools and shopping centres, with Sardinia Bay beach only a 10-minute drive, while Sherwood, which is on the doorstep of Bay West shopping mall, offers easy access to arterial routes, and South End is well located for access to the beachfront as well as the central and Walmer business districts.

“The area of Overbaakens offers sectional title and freehold homes priced under R1 million for two to three bedrooms, while Fairview has seen significant growth and development over the last five years, and here we are currently marketing sectional title, semi-detached units in a new development called Mimosa Village. Various options are available to purchase in this development, mostly priced below R1 million but with larger units selling for just over R1 million, making it ideal for first-time buyers and investors. For a larger unit you’ll pay anything from R960 000 up to about R1.06 million for an appealing three-bedroom, two-bathroom home with a single garage. Already established with some 32 units already built, a further 250 units are to be constructed in this accessibly priced development.”

An area sought after among buyers looking to buy an older home that offers space but may need some work, is Mount Pleasant, where approximately 55% of buyers are under the age of 49. Salisbury Park, Fairview and Parsons Vlei are also popular options for first-time buyers as they offer ‘duet’ units, namely two properties built on one erf as sectional title, that offer the convenience of lock-up-and-go at a reasonable price and with new finishes.

Pam Golding Properties also reports increased interest in the purchase of guesthouses and guest lodges in Nelson Mandela Bay, mainly in the R7 million to R9.5 million price range. Queries are mainly from South Africans, comprising business people, current guesthouse owners looking to expand their portfolios, and prospective entrepreneurs.

Says Kreusch: “Currently we are marketing a well-established guest lodge set on a 2 000sqm erf close to the seafront in Humewood, comprising an eight-suite, double-storey building, dining area, office and a residential house with a double garage, swimming pool, borehole, and parking for 10 cars, priced at R7 million. Also for sale is an elegant 12 double-bedroom guesthouse in the leafy suburb of Walmer with two lounges, in-house conference area for guests, bar area, dining area overlooking the gardens and pool, a cottage for longer-stay guests and ample parking, plus there is an existing manager who lives on the property. With an erf size of 4 000sqm, the guesthouse is priced at R9.5 million.”

For further information contact Pam Golding Properties Gqeberha on 0 41 373 9955.

Posted by The Know - Pam Golding Properties