select
|

Kungwini becomes ‘dormitory’ town

Severe housing shortages in some of the towns that make up the Highveld coal belt are putting the residential property market in Kungwini (formerly Bronkhorstspruit) under increasing pressure as homebuyers stream to the centrally located town.
 
In fact around 80% of residents now work in other centres, says Koos Pretorius, owner of the RealNet Kungwini franchise. “And the influx of buyers is pushing up house prices and rentals, and attracting developers as well as investors, who earn good yields on rental properties”.
 
The reason for strong demand is three-fold, he says. "In the first place the town still has a rural atmosphere and attracts residential buyers from Pretoria, the East Rand and Johannesburg who often feel more secure here and also find the time taken to travel to their workplaces is shorter than if they were living in suburbs of these centres, even though the travelling distance is considerably further. For instance, commuters can reach Pretoria about 60km away in less than 30 minutes.
 
"Secondly, buyers rate the infrastructure here better than in some surrounding towns where problems with services such as water supply, are particularly onerous, and a third factor is the shortage of residential stock in nearby towns such as Kriel and Ogies."
 
Contractors at the Kusile power station are also taking up a large percentage of available housing. And with construction expected to continue for the next decade, Pretorius foresees continued housing demand from this sector.
 
Developers have started buying large stands of around 2500sqm in the older part of town and demolishing homes to make way for apartment blocks of between 30 and 60 units but development is not keeping pace with demand, he says. Most apartments are rented by workers at Kusile at rentals starting at around R6000 a month. Investors are very active in this market.
 
The most critical shortage currently is family homes in the R800 000 to R900 000 price range, because a large percentage of prospective buyers qualify for bonds in this range. However, most family homes in central Kungwini are marketed from R1m and up.
 
Pretorius notes that buyers with families are increasingly targeting homes in Masada on the outskirts of town, but that this has led, in turn, to stock shortages in Masada, where homes are priced between R750 000 and R1m. Riamarpark, further away from the town centre, is currently benefiting from the overflow. Although prices here are in the affordable R650 000 to R900 000 range, buyers still view it as a last resort if they do not find suitable homes closer to town.
 
Upmarket properties in Bester Ext 1 are also in demand but again, says Pretorius, there is a gap between what buyers can afford and asking prices. "Demand  is greatest in the R850 000 to R1,3m price range, but asking prices now range between R1,1m and R1,5m. Homes here are typically between 185sqm and 300sqm under roof on stands of around 1000sqm. Luxury homes at the R1,5m mark offer three bedrooms, a study, two bathrooms, double garaging, a swimming pool or spa and a lapa, but the demand for these is currently sluggish.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      If you are looking to sell your home this year, Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, says that there are five crucial things to do before the ‘for sale’ sign goes up.
    • 01 Feb 2018
      February is the month of love and to celebrate we will be posting about all the things we love this month. Follow the #MyPropertyLoves hashtag to keep up with our favourite things.
    • 01 Feb 2018
      After saving up and months of searching for the right home, applying for a bond and patiently waiting for the keys to the front door, it is finally time to cross the threshold and move into your new home. Now what?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK