Property prices may be increasing across the country as buyers continue to make the most of the lowest interest rates in more than five decades, but there are still areas where the average purchase price is less than R1 million.
Although house prices in the Eastern Cape have increased by a significant 8.3% for the period ending June 2021, according to Lightstone data, it is still comparatively affordable.
The coastal towns of the Eastern Cape, especially Jeffrey’s Bay, St Francis, Kenton and Port Alfred, appeal to those who are wanting to relocate and work from home.
Families with young children are also drawn to the good schools in the region, says Carl Coetzee, CEO of BetterBond.
Massive investment in infrastructure creates jobs and stimulates investor confidence. Projects such as Coega and the Port Elizabeth Waterfront project provide economic opportunities, which has a knock-on effect on the demand for property, explains Coetzee.
“With more people working remotely, buyers are able to consider towns and areas outside of the main urban hubs where property may be more affordable.
“This, coupled with the lowest interest rate in decades, means that first-time buyers especially are able to gain a foothold on the property ladder,” says Coetzee.
“The Eastern Cape, North-West, Free State and Mpumalanga offer plenty of opportunities for aspirant buyers.”
“Affordability and access to amenities and economic opportunities are key considerations, especially for first-home buyers.
“With the current shift to remote working, it is now possible for buyers to consider living further from city centres where the property is more expensive,” says Coetzee.
“Almost 40% of BetterBond’s formal grants for the 12 months ending in August 2021 were for bonds of between R500 000 and R1 million,” says Coetzee.
“Homes of up to R1 million fall below the threshold for transfer duties, making them more accessible because of lower costs.
“This, coupled with record-low interest rates which have held steady at 7% for more than a year, means that more aspirant buyers have been able to apply for a bond so that they can invest in property,” adds Coetzee.