Green shoots of renewal are emerging in the resilient and community-oriented Eastern Cape town of Makhanda*, where renewed activity in the residential property market, the refurbishment of homes and commercial buildings, and gradual infrastructure improvements are helping restore confidence in this historic university town.
Says Gordon Shutte, Pam Golding Properties area principal in Makhanda: “Encouragingly, there have been improvements in infrastructure maintenance in certain parts of the town, including upgrades to key roads and ongoing efforts to enhance the appearance and functionality of the central business district. There has also been a gradual revitalisation of commercial premises, with several businesses refurbishing buildings and investing in new ventures. These developments are contributing positively to confidence in the town and its property market.
“Makhanda retains a distinctive appeal, combining respected educational institutions, a vibrant cultural life and well-preserved historic architecture. The presence of leading schools, a respected university and a strong sense of community creates an environment that appeals to families, investors and lifestyle buyers alike. Increasingly, buyers are recognising the town’s long-term value and the opportunities it presents for both residential living and property investment.”
Renowned as one of South Africa’s leading educational hubs, Makhanda is home to Rhodes University, the prominent independent boarding schools Diocesan School for Girls (DSG), St Andrew’s College, St Andrew’s Prep and Kingswood College, as well as highly regarded government schools including Graeme College, PJ Olivier and Victoria Girls’ High School. As a result, the town continues to attract families relocating for schooling.
“We are seeing a steady flow of buyers relocating to Makhanda, with our top schools remaining a key driver of demand for family homes. Many families move from larger metropolitan areas, drawn by the combination of outstanding educational facilities and a more manageable, far less pressured lifestyle,” says Welmarie Calitz, area manager for Pam Golding Properties.
“Buyers relocating for schooling typically purchase in the R2.5 million to R5 million range, depending on the size and location of the property. Many seek spacious family homes with gardens suitable for a permanent relocation. Others prefer lock-up-and-go townhouses or smaller homes if they intend to live in Makhanda mainly during school terms, while maintaining their primary residence elsewhere. Such properties provide a convenient base for half-term visits, sporting fixtures and other school events, enabling families to remain actively involved in their children’s school lives.
Student accommodation linked to Rhodes University also remains an important segment of the market. Some parents purchase homes for their children attending the university, often renting out additional rooms to other students – an arrangement that helps offset costs while also creating a longer-term investment opportunity.
“However,” says Calitz: “Schooling is not the only factor attracting home buyers. Some are drawn purely by the town’s lifestyle appeal, while others are residents returning to their roots - including expatriates.
“In the Makhanda market, around R4 million can secure a substantial character home, often with generous proportions, established gardens and, in many cases, heritage architectural features. These homes are typically located in well-regarded suburbs close to schools and amenities. When appropriately priced properties become available, they tend to attract strong interest.
“Positively, returning South African expatriates are gradually purchasing homes in the town. While some return primarily for lifestyle reasons, others relocate so their children can attend Makhanda’s respected schools. In addition to those returning permanently, some expats are acquiring property purely as an investment. These investors are attracted by the town’s relatively stable property values, rental demand linked to its educational institutions, and the long-term appeal of owning property in a historic university town. Many expat purchasers appreciate Makhanda’s heritage architecture, strong sense of community and renowned educational institutions, and often purchase in the upper mid-market to premium price ranges.”
Calitz says that several areas consistently attract strong buyer interest. These neighbourhoods are valued for their proximity to leading schools, attractive architecture, tree-lined streets and larger erven.
West Hill , known for its historic and architecturally significant homes interspersed with modern residences, and situated near the independent schools and Rhodes University, typically records prices ranging from about R2.1 million to R3.4 million.
The tranquil suburb of Oatlands , popular among families seeking larger properties, generally offers homes priced between R1.8 million and R2.5 million.
In Hill 60 , an elevated residential area to the north-west of the town offering scenic views, homes can typically be acquired in the R1.5 million to R2 million range. All the above prices are dependent on size, condition and location.
Adds Calitz: “Lifestyle buyers are drawn to Makhanda for a variety of reasons: its historic character, relaxed pace of life and vibrant cultural scene, with events such as the National Arts Festival reinforcing the town’s reputation as one of South Africa’s cultural hubs. These lifestyle buyers often seek charming character homes, properties with views or homes with large gardens, typically in the R2 million to R2.5 million price range.
“There is also renewed interest in areas where buyers are recognising the potential of refurbishing older homes in neighbourhoods with strong long-term appeal. Refurbished character homes in these areas typically range between R1.1 million and R1.8 million, depending on location and the extent of the upgrades.”
These areas include:
- Oatlands North , which offers family homes as well as larger modern or luxury residences, often with scenic views over the town, priced from around R1.3 million to R1.6 million.
- Somerset Heights , comprising mainly large freestanding homes on spacious erven, generally priced between R1.5 million and R1.7 million.
- Kingswood , where a significant portion of the market consists of one- to four-bedroom townhouses in secure gated developments, priced from approximately R1.2 million to R1.8 million.
- Sunnyside , known for its older character homes, many featuring Oregon pine ceilings and Yellowwood floors, with prices typically ranging from about R990 000 to R1.3 million.
Adds Calitz: “First-time buyers - often young professionals or couples, many of whom are locals entering the property market, tend to look in the R650 000 to R1.5 million price bracket. Demand in this segment has remained relatively steady, supported by employment linked to the education sector, government and local businesses.
“Investors also remain active in the market, particularly where rental demand is strong in central areas of town. This includes both student accommodation and long-term family rentals. Investment purchases commonly fall in the R750 000 to R1.4 million price range, where buyers can secure properties with good rental potential. Investors typically take a medium- to long-term view, often holding properties for between five and 12 years to benefit from both rental income and capital growth.”
*formerly known as Grahamstown
For further information contact Welmarie Calitz of Pam Golding Properties on 073 242 0104/ 046 622 2778 or email Welmarie.calitz@pamgolding.co.za .
