Stephan Lubbe, Rawson Property Group franschisee, said that the high demand for residential property in George is almost certainly due to the number of new residents moving into the city each month.
The influx of new residents is doing more on the property market than just driving demand, however. “Traditionally, fixer-uppers have always been popular,” said Lubbe. “While we still see demand for flip-friendly properties from young couples and speculators, it’s the ready-to-move-in homes that are really flying off the shelf at the moment.”
Buyers new to the area have low interest in fixer-uppers. Lubbe explained that their most popular properties are in the mid- to high-end sectors , with 20% of all residential transaction being made up of homes in the region of between R1m and R1,5m.
As far as capital appreciation goes, Lubbe conservatively estimates around 10.5% per annum for freehold properties. “Sectional title has seen slower growth,” he said. “Rental demand is currently sky-high though, so buy-to-let investment could accelerate this market in the future.”
New construction is also speeding up, with developments like Kraaibosch Country Estate, Kraaibosch Manner, and Blue Mountain Lifestyle Estate growing at pace.
According to Lubbe the development of the Garden Route and Eden Meander Malls in particular has driven demand for residential property in the eastern suburbs especially. He added that he expects the new Mediclinic private hospital on the eastern periphery of George will only add to the demand for George homes.