The housing market in Uitenhage – now known as Kariega – in the Eastern Cape, is experiencing an influx of young buyers, says Justin Kreusch, Pam Golding Properties area principal based in Gqeberha, who along with Ian Olivier and new partner LeRoi Grimbeek, has acquired the company’s Kariega franchise.
What are the major attractions and how is the market activity?
Kariega is home to the largest vehicle manufacturing plant in Africa - the Volkswagen factory, which opened in the area in 1946 and recently invested R235 million in a new wax flooding facility. The town is also well supported by a range of other industrial operations and businesses.
“During 2022, almost a third (26%) of the town’s home buyers were young adults up to 35 years of age, many of whom were first-time buyers below 30 years of age. Most seek starter homes, including some sectional title apartments, comprising three bedrooms, one bathroom, lounge and kitchen,” Says Kreusch.
With the vast majority (97.7%) of residential properties in Uitenhage being freehold homes, according to Pam Golding Properties local agent, Antoinette Naude, older buyers over the age of 30 are looking mainly for larger freehold homes with a braai/entertainment area and swimming pool.
Encouragingly, freehold homes remain accessible to aspirant purchasers, with median prices peaking at R850 000 in 2020 and 2021, and easing to R800 000 in 2022 (Source Lightstone statistics).
“For approximately R850 000 you can secure a basic beginner’s property with three or four bedrooms, one or two bathrooms and living area, in lower priced areas such as Scheepers Hoogte, Fairbridge Heights and Van Riebeeck Hoogte, or a fixer-upper property in higher priced areas such as Vanes, Winterhoek Park and Strelitzia Park.
“Generally speaking, sectional title properties can be acquired between R400 000 and R680 000, depending on the condition and location, with freehold homes selling between R650 000 and R1.5 million in lower priced areas and between R850 000 and R2.5 million in higher priced neighbourhoods,” Says Naude.
Commenting on the market Kreusch says: “Sales activity is steady at present, however, while we are currently experiencing a stock shortage of homes to sell, a contributing factor is that available stock is not always realistically pegged at market-related prices. The reality is that this recently changed to a buyers’ market, with prospective purchasers shopping around more.
“Positively, freehold sales in 2021 and 2022 were the highest number sold over the past 10 years. Vacant plots, which have shown resilience in recent years and which are in demand, present sound investment opportunities, being priced between R150 000 and R500 000 for 350sqm to 1 350sqm.
“While most of our home buyers are from Kariega or nearby Despatch, interestingly, we are also seeing more enquiries from South African expatriates regarding properties with existing flatlets to buy and let, as rental properties are experiencing good demand.”
Naude offers some advice for buyers: “Don’t over-commit when purchasing, instead rather buy smaller and cheaper and then expand when you can. For sellers, ensure your property is properly maintained, and use a registered and reliable estate agent to give advice and sell your property.”
Writer: Gaye de Villiers