Port Alfred offers good ROI for holiday homes

Private Property South Africa
RE/MAX

Situated at the heart of the Sunshine Coast region along the shoreline of the Eastern Cape, Port Alfred is equidistant between Port Elizabeth and East London and lies at the mouth of the Kowie River.

According to Warwick Heny, Broker/Owner of RE/MAX Kowie, Port Alfred is the most sought after holiday destination on Route 72, and is the centre of the Sunshine Coast, as our area is known. “We have had constant interest in holiday accommodation during 2011 and have seen a slight increase in property sales over those achieved 2010 with the average selling price around R850 000,” he says.

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that while the leisure property market always lags behind the property cycle by about a year to 18 months and therefore noteworthy recovery is not expected in this sector for some time to come, there are great leisure investment opportunities available to buyers who do their research thoroughly. Port Alfred offers leisure investors a variety of holiday accommodation ranging from flats, to duplex town houses, single dwellings and homes on the beachfront or the Marina. “On a sale volume basis the flat/town house category offers the best property pricing and proves to be the most popular,” says Heny.

Robin Roll, a sales associate at RE/MAX Kowie is currently marketing the Settler Sands development which consists of 81 sectional title units on the beachfront and at the mouth of the Kowie River. Buyers have a choice of two- and three-bedroom duplex townhouses which range in price from R650 000 to R1,350 million. Roll notes that Settler Sands is the most popular complex in Port Alfred and throughout the year, owners can collect good rental income either for full term leasing or holiday rentals. Larger beachfront homes with superb sea views range in price from R 1,5 million to R 4 million.

The Royal Alfred Marina is another popular leisure investment node, according to Roll. “The Royal Alfred Marina is a unique development of five islands within a 45ha electric fenced estate on the Kowie River estuary, which makes it spectacular to say the least. Each plot has a minimum of 15 metres of water frontage, a private jetty and direct access to the Kowie River, which is navigable for 28km, and the Indian Ocean. The marina boasts its own exclusive clubhouse, swimming pool, tennis and squash court. Prices for homes here range from R2,8 million to R12,5 million,” he says.

Port Alfred also offers an attractive three-bedroom sectional title complex on the Kowie River. “With rolling lawns to the river and private jetties these units are a fisherman's paradise,” says Roll, who notes that the most popular holiday homes are those that have good security or are situated like this complex on the river, as most buyers look for lock-up-and-go accommodation. Roll is currently marketing a unit in this complex for R 1,2 million, which he says is the most affordable riverfront property in Port Alfred at present.

Port Alfred offers holiday makers endless, pristine beaches, a friendly village atmosphere, glorious surf, magnificent deep sea and river fishing, horse rides, water sports and more. The Royal Port Alfred Golf Club is a golfers dream. Heny says that Port Alfred comes with all the amenities of a large town which include a new state-of-the- art private/government hospital, as well as an international university, and the well-known flying school, 43 Air School. Grahamstown is considered to be the educational centre of the province, with Rhodes University and a variety of excellent private schools situated only 60kms from Port Alfred.

“Buyers can expect to achieve fair appreciation on their holiday homes here in future, as prices have now levelled due to building costs having caught up with the inflated prices of the past few years,” Heny concludes.

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