Buyers flood to coastal properties

Durban promenade. Picture: supplied

Durban promenade. Picture: supplied

Published Jan 20, 2017

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Johannesburg - Despite an overall modest slowdown in

house price growth in South Africa’s residential property market, coastal

metros are doing well.

This is according to Pam Golding, which on Friday noted house

price inflation averaged 4.88 percent in 2016, which is only marginally below

the 2015 national average of 5.34 percent.

It says the 3 coastal metropolitan markets of Cape Town,

Nelson Mandela Bay and Durban continue to outperform the interior metro

markets.

Port Elizabeth. Image: supplied

Dr Andrew Golding, CEO of the Pam Golding Property group,

points out that, while Cape Town remains by far the strongest metro housing

market, Port Elizabeth and Durban have shown increasing growth in 2016.

Read also:  Modest house price rise hope

According to the latest data available from Lightstone,

house price inflation in the Cape metro averaged 11.5 percent last year, while

Port Elizabeth and Durban’s house price inflation remains above the national

average at 7.2 percent and 6.8 percent respectively.

“We believe that market growth will become increasingly

concentrated in hotspots which continue to experience high demand for a variety

of factors, including convenient access to the metros or economic hubs, value

for money, and as desirable and secure lifestyle locations.

“Apart from the ongoing activity along the Cape coast,

the Garden Route areas from Mossel Bay through to Knysna and Plettenberg Bay

are experiencing heightened demand for homes, mainly among domestic buyers

making a lifestyle choice to relocate.”

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