Image: Gregory Fullard
Great news! The Eastern Cape province in South Africa has emerged as an appealing choice for homebuyers seeking an enviable coastal lifestyle without breaking the bank. Compared to its coastal counterparts, the Western Cape and KwaZulu-Natal, the Eastern Cape offers more affordable options while delivering a high-quality living experience. It has become a popular destination for both semigrants and first-time buyers who are looking for properties that align with their budget and lifestyle preferences.
Recent data from Lightstone (as of December 2022, according to the April 2023 Residential Property Indices report) reveals that house price inflation in the Eastern Cape stands at 5.65%, slightly surpassing that of the Western Cape. This upward trend can be attributed to the growing demand from homebuyers who are relocating from Gauteng and other parts of the country. The appeal of the Eastern Cape spans across various age groups, attracting young first-time buyers as well as retirees.
The Eastern Cape property market presents a diverse range of options, including sectional title homes, apartments in new developments, freestanding houses, and properties situated in beautiful lifestyle estates. Carl Coetzee, CEO of BetterBond, explains, “It’s no wonder that this region has become a sought-after destination for semigration. Our data for the 12 months ending in April indicates a 3% increase in bond approvals for first-time buyers in the Eastern Cape. The average purchase price of a first home has risen by 4%, but with an average price of R927,408, it comfortably falls within the R1.1 million transfer duty threshold. This factor further enhances the appeal of the Eastern Cape for aspiring homeowners.”
Retirees also find the Eastern Cape attractive as they can downsize without compromising on value or location. Coetzee points out, “With an average purchase price slightly above R1.1 million, according to BetterBond home loan application data for April, the Eastern Cape housing market appeals to investors and buyers seeking to expand their property portfolio with a second home. While the demand for properties in many larger metros has driven house price growth in this province, there are indications that the local residential property market will continue to thrive.”
The value of building plans approved and completed in the Eastern Cape has doubled since the onset of the pandemic and nearly tripled since 2013, as indicated by the latest BetterBond Property Brief. Coetzee states, “These figures serve as an indicator of new properties entering the market. As the country’s second-largest province, after the Northern Cape, the Eastern Cape is home to 11% of the national population. Most of the construction activity takes place in the larger municipalities, where the average annual increase in the value of building plans approved between 2013 and 2022 is 12.5%. ” Lightstone data reveals that while annual house price inflation in the Nelson Mandela Bay Municipality may be easing at 6.1%, it still outperforms other coastal metros. In the City of Cape Town, annual house price inflation stands at 3.3%, and in eThekwini, it is 3.6%.
Beyond its thriving property market, the Eastern Cape offers a wealth of lifestyle and economic opportunities. The province boasts abundant wildlife, natural beauty, and an unspoiled coastline. It also serves as a commercial and manufacturing hub, providing ample prospects for growth. Trade data from the Observatory of Economic Complexity reveals that Gqeberha exported over R100 billion worth of goods last year, with motor vehicles, manganese and iron ores, catalytic converters, and wool being the main exports. East London, another city in the Eastern Cape, contributed R50 billion to this impressive figure. Several multinational companies, including Coca-Cola, Anheuser-Busch InBev, Volkswagen, Ford, Continental, and Goodyear, have invested in local production facilities in Gqeberha, further boosting the region’s economic potential.
The Eastern Cape presents an enticing package of affordable coastal living, diverse property options, and promising economic prospects. Whether you’re seeking a peaceful retirement, a first home, or an investment opportunity, this province has much to offer for those looking to embrace a fulfilling lifestyle.
