Cape Town, South Africa

Homes in traditionally sought-after suburbs have become unaffordable for many middle-class buyers and this has led to a renewed interest in previously slightly less fashionable suburbs.

Port Elizabeth and East London estate agents say demand in “Cinderella suburbs” like Richmond Hill, Central, Glen Hurd and Sherwood in Port Elizabeth and Cambridge, Morningside and Amalinda in East London has shot up.

Due to interest hikes, the National Credit Act and a general downturn in the economy, houses in these suburbs are selling quickly as buyers realise they get more house for their rand, they said.

Properties in some of these previously overlooked neighbourhoods could rise in value as a result of the demand, claim agents working in these areas.

 “We are experiencing more activity in Richmond Hill, South End, Glen Hurd and Mount Croix than in other suburbs,” said Colliers International principal James Conyers.

 “A showhouse in Mill Park will attract two or three visitors, but those areas will attract 20 or 30 groups of people and this demand will drive the value up because there is a perception that these are up-and-coming areas.”

Conyers said there was a trend of young professionals and families realising the value of areas that had been “less fashionable” for some years and referred to Richmond Hill as “the Melville of PE”.

 “You can get an average three-bedroom house in Richmond Hill for about R700000, but in Walmer you would pay about R1.5-million for something similar, so people are realising the affordability of these areas. This should lead to their ‘Chelseafication‘ with coffee shops and boutiques opening up.”

About Colliers International

Colliers International is a global affiliation of independently owned commercial real estate firms. The organization's 10,092 employees span the world in 267 offices in 57 countries. On a worldwide basis, Colliers manages 672,945,918 square feet, and has revenue of $US 1,620,958,349.

Contact Information

Sanett Uys

sanettu@colliers.co.za

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