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.”

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