The recovery of East London’s property market following the national market slump in 2008 is being driven by black buyers who are snapping up property in the city’s suburbs.
Local estate agents said this trend had been on the upswing for a few years, but had become especially evident this year.
Professor Matthew Lester of Rhodes Business School said the market upswing was due to a growing middle class whose remuneration was increasing faster than inflation. “Property has not gone up very much and interest rates have remained pretty low so property has become more accessible because it’s more affordable.”
Lester said there had also been a spike in the state payroll. “So if you’re a government employee, property is more accessible.”
Pam Golding East London principal Hanlie Bassingthwaighte said 59% of her agency’s sales are to black buyers, compared to 40% last year.
Clinton Krouse of Chas Everitt agreed, saying at least 75% of his buyers were black, up from about 60% last year. He said he thought this was due to many white people leaving East London and moving mainly to the southern and western Cape, with black civil servants taking their place.
Krouse said another reason for the market recovery was banks being “more relaxed” about granting credit since the beginning of this year.
“They at least make an offer whereas before the end of last year they would decline outright clients with bad credit ratings.”
Sellsure principal Liza Harris said 80% of her buyers were black, with Beacon Bay being especially popular. “A lot of our buyers are from Mthatha and surrounds. Not all move here. Some buy weekend homes and others purchase homes for their children to stay in so they can attend East London schools.”
Bassingthwaighte said the lower end of the luxury market – particularly in the R1.5-million price range – was “very active” and was experiencing a shortage of stock.
Harris agreed: “If I could get R1.5-million houses in areas like Beacon Bay, Nahoon and Vincent, I could sell 10 in a week.” — barbarah@dispatch.co.za
Black buyers lift house sales
Local estate agents said this trend had been on the upswing for a few years, but had become especially evident this year.
Professor Matthew Lester of Rhodes Business School said the market upswing was due to a growing middle class whose remuneration was increasing faster than inflation. “Property has not gone up very much and interest rates have remained pretty low so property has become more accessible because it’s more affordable.”
Lester said there had also been a spike in the state payroll. “So if you’re a government employee, property is more accessible.”
Pam Golding East London principal Hanlie Bassingthwaighte said 59% of her agency’s sales are to black buyers, compared to 40% last year.
Clinton Krouse of Chas Everitt agreed, saying at least 75% of his buyers were black, up from about 60% last year. He said he thought this was due to many white people leaving East London and moving mainly to the southern and western Cape, with black civil servants taking their place.
Krouse said another reason for the market recovery was banks being “more relaxed” about granting credit since the beginning of this year.
“They at least make an offer whereas before the end of last year they would decline outright clients with bad credit ratings.”
Sellsure principal Liza Harris said 80% of her buyers were black, with Beacon Bay being especially popular. “A lot of our buyers are from Mthatha and surrounds. Not all move here. Some buy weekend homes and others purchase homes for their children to stay in so they can attend East London schools.”
Bassingthwaighte said the lower end of the luxury market – particularly in the R1.5-million price range – was “very active” and was experiencing a shortage of stock.
Harris agreed: “If I could get R1.5-million houses in areas like Beacon Bay, Nahoon and Vincent, I could sell 10 in a week.” — barbarah@dispatch.co.za
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