select
|

Nelspruit infrastructure improvements draw national companies, investors

All sectors of the Nelspruit property market are now benefiting from upgraded infrastructure, and investor appetite has been whetted.
 
The city, seat of the Mpumalanga government and commercial hub of the province, now boasts infrastructure on a par with other large commercial centres around the country, says Juan Botha, owner of top local estate agency RealNet Nelspruit.


4 Bedroom House for sale in Sonheuwel
 
"The commercial property market is particularly active at the moment," he says, "with several large national concerns having taken up office space to establish regional offices, as well as distribution centres and warehouses. Some companies have also bought commercially-zoned land and are in the process of building custom designed offices and other commercial space."
 
A-grade office space in Nelspruit now commands monthly rentals of between R100/sqm and R130/sqm. Retail space is letting for between R100/sqm and R300/sqm depending on location, and light industrial space for between R40/sqm and R70/sqm
 
Botha adds that commercially-zoned development land has become scarce and that companies and investors are vying to buy available land parcels. "Nelspruit has experienced a sharp increase in demand and 18 stands at Riverside Park Extension 22 Industrial Park recently sold quickly at prices ranging from R2m to R15m," he says.
 
The influx of commercial concerns has also boosted the local residential property market and demand is putting pressure on stock levels, particularly in theR700 000 to R1,5m price range. Botha says there is a great need of new development in this price range, especially since investors have now returned to the market and are competing with homebuyers in this range.
 
"Investors realise that they can earn returns of between 7% and 8% on local residential property,as opposed to between 2% and 4% if they hold their investments in bank deposits. And demand is likely to escalate further on the back of a new private hospital under construction between Nelspruit and White River, as well as the new local university. Investors are already sourcing apartments and houses suitable for student accommodation and we expect that trend to gather momentum."


4 Bedroom House for sale in Nelspruit
 
But, he says, the biggest concern in the residential sector is overpriced homes that are getting ‘left behind’. “Sellers need to realise that buyers are well-informed and will not overpay for property, even in areas where there is a shortage. The banks are also strict on valuations and will not overvalue any property.
 
“Experienced residential estate agents will do accurate comparative market analyses (CMAs) before starting to market a home – and the advantage of working with such agents speaks for itself, as the homes they market generally sell within 30 days of listing and the banks are eager to finance these purchases.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
        
    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