Affordable homes drive Rustenburg recovery

Although Rustenburg is still feeling the aftershocks of a local recession caused by last year’s lengthy mining strike, the town’s real estate market is recovering and demand is especially strong in the lower price categories.

This home in Safari Gardens in Rustenburg was recently sold by Harcourts for R900 000.

So says Adina Harmse, principal of the local Harcourts franchise, who notes that internet listings of homes for sale are really helping to drive exposure and interest at the moment and that stock shortages are developing in the R300 000 to R1,5m price range.

“The overall market is still slow and buyers are very price-conscious, but this is helping new developments which are actually selling out very quickly because there is no transfer duty to pay. There is a lot of construction now in Sunrise View and Thlabane, where developers are releasing homes in the R600 000 to R750 000 price bracket, and new suburbs like Waterval East have seen quite substantial price growth in the last year.”

She says buyers are also keen to purchase pre-owned homes for less than R750 000 to avoid transfer costs, so property in this price bracket is particularly sought-after. “In fact, if we had access to more homes under R950 000, we would not have any problems selling them.

“However, sales are much slower in the R1,5m to R3m range, and prices are stagnant in older upmarket suburbs like Protea Park. In addition, there are still many instances of sellers pricing themselves out of the market and of sellers only receiving offers for much less than their asking price.”

Meanwhile, Harmse says, several Johannesburg and Cape Town companies are trying to source land in Rustenburg for both commercial and residential developments, particularly in the affordable housing category.

“And confidence in the town’s economy is being restored as locals observe investors put money into infrastructure upgrades, new office buildings and new mining opportunities.”

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us