Property development firm Amdec has been granted permission to build a brand new suburb in Port Elizabeth, in order to meet increasing demand for residential property in the city.

The company is expecting to start work on the project, which will be located in Parsonsvlei, just west of Port Elizabeth, in February, with residents scheduled to move into the homes in the first half of 2010.

The multiphase project will be rolled out over five to seven years, said Amdec, adding that all the necessary approvals have already been secured from the city council.

Amdec says development rights for the 128ha site include 2,200 residential units, as well 4ha for the development of community facilities such as a school and 15ha for light industrial development.