East London’s Beacon Bay is one of South Africa’s top 10 selling suburbs in the country, a report by the South African Property Transfers Guide (SAPTG) released at the end of January revealed.
Remax International Properties group principal Antoinette Clark says Beacon Bay has always had a higher sales compared to other East London suburbs, but the unfolding landscape changes in the suburb recent years increasingly draws new buyers.
“Beacon Bay has always been one of the areas in East London with high sales. It has historically had high turnover compared to the older areas closer to town that don’t change and develop,” says Clark. “There is a lot of development and new areas. In most other areas there is no more land to develop.”
The suburb has also seen the Life Helthcare Group open its doors near a new residential townhouse scheme while The Beacon townhouse cluster has gone a long way in changing the face of that suburb.
High sales turnover as parents close distance to schools
East London Pam Golding Properties principal Hanlie Bassingthwaighte says there is high turnover in the Beacon Bay residential property business. This, she says, is because the proportion of residents to schools in Beacon Bay does not favour residents. It leads to young families moving elsewhere within a short space of buying once their children have to start school.
“In the central suburbs such as Selborne, Vincent and Cambridge, property owners tend to stay longer because there are many schools to accommodate residents. By contrast in Beacon Bay, people trade property faster and until there are more schools that trend is likely to continue. People want to be near schools,” Bassingthwaighte says.
High total sales and total value for Beacon Bay
SAPTG reviews full title and sectional title properties collectively and excludes sales where purchase price is less than R100k or greater than R15mil. Beacon Bay is the only suburb to make it into the list in the Eastern Cape, in the period under review (July to September 2010).
The report assessed the performance of property in terms of units sold, and total values of properties sold in various suburbs around the country from July to September 2010. Beacon Bay earned the ninth spot in the SAPTG report, with sales for the period totaling over R67,9 million at an average price of R1,191,964.
Protea Glen in Soweto sold the highest number at 85 units during the third quarter of 2010. But with an average property value of just over a quarter of a million, it falls away from the top ten from a total value perspective.
While Beacon Bay maintains the ninth position both in terms of total sales and total property values, the Gauteng suburb of Bryanston tops the property values list at over R134 million. Total sales were on par with those of Beacon Bay at 57. The average Bryanston property value in the period was R2,35 million.
Value for money a plus for Beacon Bay
Clark, who estimates the average property in Beacon Bay to be in the R900 000 to R1,1 million range, says the prices in the suburb offer value for money and draws first time buyers and retirees looking to downscale.
”The houses are more modern and affordable compared to areas closer to town. Once the sale goes through there is less to do whereas in some part of East London, you could get a house for a bargain but you might have to fix it up or demolish it and rebuild.
She adds that the suburb has a number of new townhouse developments and offers good infrastructure and shopping facilities. By SIYA MITI