Kimberley infrastructure problems put homebuyers out in the cold

New housing development in Kimberley, the capital of the Northern Cape, has come to a standstill and first-time buyers are being shut out of the market.
Kobus van der Walt, owner of the Aida franchise in the city, says there is huge pent-up demand, and that buyers are “queuing up” to get their hands on any units that do become available now in housing projects that were approved before December 2008, when a moratorium was imposed on any new development in the city.
“This is certainly the case, for example, with the Cassandra and Riviera developments, where we currently have around 40 new townhouses for sale. These 100sqm units are priced at between R585 000 and R599 000 and are attracting very strong interest and multiple offers.”
And yet, he notes, it is difficult to finalise sales in this price category because of the banks’ extreme reluctance to approve 100% home loans. “The 104% loans that are spoken about apply only to people with a household income of less than R15 000 who are purchasing a home for less than R450 000.
“Other young people and first-time buyers who don’t have the cash for a deposit of at least 10% and transfer costs are thus caught in a vice currently, between a lack of new stock at the right price and lack of finance for units at higher prices.”
Not surprisingly then, Kimberley’s most active market sector currently is the middle-income suburbs, where the average house price now stands at around R900 000 – and where many of the sales taking place are to second and third-time buyers who are able to pay cash or put down sizeable deposits.
As to the future, Van der Walt says the current situation as regards first-time buyers is unlikely to change much until the moratorium is lifted – which will only be when the local authority has spent hundreds of millions of rands on repairing and upgrading the city’s bulk infrastructure, especially its overworked and dilapidated waste-water and sewage treatment plants.
Issued by Aida National Franchises

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 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 …
    • 19 Jun 2018
      Douw Steyn, one of the richest men in the country, recently allowed a rare glimpse into his Fourways Palazzo when it was featured on the SABC lifestyle programme Top Billing - and it is beyond your wildest dreams!
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for
    • 18 Jun 2018
      Sellers are often caught off-guard by the expenses incurred in the selling of a property. Just like there is no such thing as a free lunch, there is also no such thing as selling your property without incurring at least some costs.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us