South Africa: Economic Growth Stimulates Property Market
Tag: South Africa, South Africa economic
Summary: Rental units are in high demand among construction workers and professional contractors at the Kusile power station and a new cement factory, says Koos Pretorius, who has recently opened a new RealN…
Investors in rental accommodation are already earning sound returns since strong demand has pushed up monthly rentals.
The town is bursting at the seams with the influx of construction workers and there are now excellent opportunities for investors as well as developers. However, little development land is available and surrounding agricultural land will probably have to be rezoned to accommodate much needed new residential development," he says.
Rentals for townhouses range between R4 000 and R4 500 per month, while full-title homes are rented out at between R5 000 ad R12 000 per month, depending on size and location.
Pretorius says many tenants on short contracts require furnished units and landlords finance furniture through hire purchase. In this way, monthly furniture payments are covered by the higher rentals that furnished units achieve.
Pretorius is currently recruiting experienced estate agents for the RealNet Delmas office. The office, which was opened three months ago, currently fields five agents and Pretorius plans to expand the sales force to 12. "The Delmas property market is on the up and up and I confidently expect that it will become one of the country's star performers," he says.
Infrastructure development in and around Delmas is boosting economic activity in this Mpumalanga town and has led to a shortage of residential rental accommodation.
Rental units are in high demand among construction workers and professional contractors at the Kusile power station and a new cement factory, says Koos Pretorius, who has recently opened a new RealNet franchise in Delmas.
Pretorius, who also owns the RealNet franchise in nearby Bronkhorstspruit, adds that a proposed cargo airport next to the N12 highway and planned upgrading of the road between Delmas and Bronkhorstspruit will add further impetus to the town's economic growth which will, in turn, boost the property market.