provincial , district , and metropolitan . Even though East London has a good base of government employees , the manufacturing sector has also been driving investment growth , with Mercedes Benz producing its C-Class vehicles for right-hand drive markets in the city ,” he says .
According to Lekhelebana , Gqeberha was , however , already experiencing a shutting down of economic support in the area . Examples include a Tyre manufacturer that closed , Aspen Pharmacare reducing its production lines , and one of the big five accounting firms closing its offices . Sadly , things have been exacerbated in the wake of the pandemic .
“ This certainly has negatively impacted the rental market resulting in high churn as people have to vacate their flats due to the economic pressures . Though , as the Transnet National Ports Authority is planning to move its head office from Johannesburg and Durban to Gqeberha it is expected that this will bring approximately 400 new families into the city that will provide a significant boost to the rental market and hopefully is a sign of more things to come to the city ,” Lekhelebana adds .
Student Housing Regional manager at TUHF , Velda Derrocks says the potential for student rental accommodation in Gqeberha is very high , as the demand for student rentals in Gqeberha remains as high as in East London .
" There are still opportunities in East London and Gqeberha for investors to capitalise on ."
“ East London continues to have good demand for residential units , and it is worth noting that we have achieved 100 % let-up of a 46-unit development in Belgravia , essentially at the peak of the second wave of COVID-19 infections . This clearly indicates demand for well located , well-operated , clean and affordable housing units ,” Derrocks says .
Harnessing Opportunities “ Developments in the inner-cities of both East Londong and Gqeberha will continue to be driven by demand for student residents . As such , the local government must do everything it can to ensure it is an attractive space for students by getting rid of vagrancy and reducing the amount of crime in the areas ,” says Lekhelebana .
Embracing Innovation Despite the challenges that physical and social distancing requirements can pose on being able to regularly engage with tenants on a face-to-face setting , as property entrepreneurs it is important that we adapt to working remotely and conducting our daily operations and client engagements etc . through more digitally driven means .
SOURCES TUHF
SA Real Estate Investor Magazine JULY 2021 27