Will power outages sink property prices in hard-hit Nelson Mandela Bay areas?

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The Nelson Mandela Bay Business Chamber has warned that ongoing power outages are no longer just an inconvenience but a growing threat to property values and investor confidence in the metro.

The chamber said persistent electricity disruptions were eroding business stability, discouraging investment and placing additional pressure on an already fragile local economy.

Following the third major pylon collapse in Nelson Mandela Bay this year, large parts of the city are facing a three-week blackout.

As businesses struggle to keep open without a reliable electricity supply, residents fear their property values are declining.

January’s outage lasted five days and February’s 10.

The latest outage from last week was estimated to take 21 days to repair after the top of a pylon snapped on the 132kW Chelsea–Arlington line on a farm in Bushy Park.

Chamber chief executive Denise van Huyssteen said it was highly concerning that it would take three weeks to fix the third protracted power outage.

“The beachfront and Walmer areas have, in particular, carried the brunt of these severe infrastructure failures, which could have been prevented if proactive, adequate and routine maintenance work had been undertaken on the electricity infrastructure.

“The chamber has for several years been pushing for the urgent renewal of 132kV maintenance contracts.

“The airport, which is a key entry and exit node in the metro, and which is listed as a national key point, has also been impacted by this outage.”

Van Huyssteen said protracted power outages were causing serious harm to the economy, especially to the tourism and hospitality sectors.

“It is resulting in significant damage to the metro’s overall reputation as an investment and tourist destination.

“The reality is that investors will place their investments in low-risk locations which offer reliable infrastructure, safety, security and cleanliness.”

She said that while Walmer was fast becoming a mixed-use suburb with its proximity to the airport and major transport corridors, Summerstrand had a lifestyle appeal and strong tourism demand.

Both suburbs relied on consistent service delivery to sustain their property pricing and desirability.

“For commercial property owners and tenants, unreliable power introduces operational uncertainty, increased costs through alternative energy solutions, and in some cases, lost trading hours.

“This directly affects business sustainability, rental stability and ultimately property valuations.

“Investors, particularly those from outside the metro, are highly sensitive to risk, and energy instability raises red flags that can delay or deter investment decisions altogether.”

Van Huyssteen said buyers were becoming more cautious, factoring in the additional cost of backup power and the inconvenience of inconsistent supply.

“Over time, this can place downward pressure on price growth, particularly in the mid- to upper-end segments where expectations around service reliability are significantly higher.

“If left unaddressed, the electricity infrastructure management crisis risks reversing the hard-won momentum in both areas, as well as the reputation of the metro as a whole.

“Nelson Mandela Bay is the most fixable metro in the country, and it is possible to turn the situation around.

“As a business community, we remain willing to collaborate with the stakeholders to urgently resolve these electricity, water and sanitation infrastructure issues, to save much-needed investment and employment in the metro.”

While many residents fear their life’s investments are losing value, property agents in the Bay remain more optimistic.

Pam Golding estate agent Sandi Harrison said property prices in Walmer had not been affected by the recent power outages.

She said buyers were increasingly seeking homes with backup electricity and water solutions already in place.

“Green homes are sought-after, and there is a much higher expectation from buyers of having both solar and water tanks installed before deciding to buy a property.

“So these have almost become a requirement when buying or selling in Walmer.”

Gqeberha RE/MAX Independent Properties broker-owner Kobie Potgieter said electricity had not affected home sales, with inflation and disposable income now playing a far greater role than in previous years.

“People are actually very understanding. It’s so sad that people have almost conformed to the lack of service delivery.

“I think people are hoping and praying that it’s only going to be temporary.

“The fact that the pylons are still falling is really alarming.

“The slower market we are experiencing is because of the unknowns regarding inflation and disposable income.

“With the prices of everything going up, people are much more wary now, especially in the lower price ranges.

“In the higher price ranges, it seems that people are not as worried about the electricity, the economy and affordability.

“There are more people in the lower price brackets who want to make sure that if interest rates go up or if inflation goes up, they are going to be able to pay.

“We used to get people only worrying about the payment of the bond, but now they are very much focused on the extra costs like rates and taxes.

“Buyers are worried about the extra usage of electricity, where batteries and inverters are not coping.

“They are worried about water tanks running dry and the costs of paying for municipal water.

“Where people never really used to ask these questions, they are now asking about every single thing concerning the expenses.

“They want a breakdown so that they know they will be able to pay all the bills and afford all the expenses and not just look at if they can afford the bond.

“If anything, the electricity crisis has affected business owners a lot harder than residents because you can still make do with an inverter at home, but businesses are really being challenged, and a lot of businesses are complaining that they can’t afford to run generators when there is no electricity.

“There is a much bigger impact on businesses.”