select
|

RE/MAX Area Trend Report – Lydenburg

Area history

Although Lydenburg’s name was officially changed to Mashishing meaning long, green grass, most still refer to the town by its original name. Derived from Dutch origin meaning Town of Suffering, Lydenburg was established in 1849 when a group of Voortrekkers led by Andries Potgieter, left the Ohrigstad settlement due to a malaria epidemic.

In 1856 the town become the capital of the Lydenburg Republic, later joining the Republic of Utrecht in 1857. During 1860 the two republics joined the Zuid Afrikaanse Republiek.

The importance of Lydenburg grew as it was located on a wagoin route to the port of Delagoa Bay, which would become known as Maputo, an area free from British control. Under the orders of President Thomas Francois Burgers construction of a road was started by Abraham Espag in 1871, with the first wagons arriving in Lydenburg from Delagoa Bay in 1874. Another catalyst for the town’s growth was the discovery of gold in 1873, which led to the proclamation of the Lydenburg goldfields. Railways had reached Lydenburg by 1910 and in 1927 it became a municipality.

Now a part of Mpumalanga’s Thaba Chweu Local Municipality, Lydenburg is situated on the Sterkspruit tributary of the Olifants River at the base of the Long Tom Pass. Today the area has become the centre of the fly-fishing industry in South Africa, along with being an agricultural and mining hub.

Area property information

Adrian Goslett, CEO of RE/MAX of Southern Africa, says that property prices in Lydenburg performed reasonably well from 2004 to 2007, with sectional title prices outperforming freehold homes. He notes that prices dipped in 2008, but saw some recovery in 2009, improving again in 2010. Property prices remained relatively flat in 2011 and 2012, however in 2013 freehold property prices performed extremely well, reaching a record high of R709 000. Currently the average price of a freehold home is around R671 000, with a sectional title unit costing approximately R682 000.

According to Goslett property sales peaked in Lydenburg in 2007, commonly regarded as the height of the boom. He says that sales volumes slowed in 2008, reaching a record low for the area in 2009. The number of property transactions improved in 2010, gaining further momentum in 2011. However, Goslett says that since 2011 sales volumes have once again seen a steady decline.

Lightstone figures reveal that over 83% of recent buyers in the area are below the age of 50, with 47.4% between the ages of 36 and 49 years old and 35.71% between the ages of 18 and 35 years old. Consumers between the ages of 36 and 49 years old also represent the highest percentage of current homeowners in the area (42.03%), along with the largest number of recent sellers (42.96%).

Property price trends



Demand for property

According to Goslett, 42.4% of the properties sold in the area between August 2013 and July 2014 were priced below R400 000, making this the most sought-after price bracket. Around 30% of the properties sold during this period were priced between R800 000 and R1.5 million, while around 21.2% were priced from R400 000 to R800 000. Properties priced between R1.5 million and R3 million accounted for the remaining 6.5% of the area’s sales.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 19 Oct 2017
      National property developer FWJK Developments have been appointed by current joint owners, Redefine Properties and Zenprop Property Holdings, to redevelop the existing 22 000m² office block at the corner of Fredman Drive and West street.
    • 19 Oct 2017
      Traditionally a property could be rented out for any period, but most landlords would opt for a six months lease agreement or longer with a potential tenant, also referred to as long term rentals.
    • 19 Oct 2017
      “Maintaining your property is one of the key aspects for an owner renting out their property to keep the landlord-tenant relationship in good standing. In my experience one of the biggest causes of a breakdown in landlord-tenant relationships is where there is a lack of maintenance or repair,” says Sunell Afrika, rentals manager for property company SAProperty.com.
    • 18 Oct 2017
      Homes in community housing schemes such as estates and cluster home complexes are generally sold at a premium, so buyers in these schemes are often confused and annoyed to find that they don’t have much “freedom of choice” when it comes to the exterior appearance of their properties.
    • 18 Oct 2017
      South Africa’s residential sector is embracing green, with new builds and existing stock the focus of a domestic market with already the highest percentage of green building projects currently underway.
    • 18 Oct 2017
      Submitted an offer and having it accepted by the seller is exciting, but it is certainly not the end of the property sales process. There are a few more obstacles that need to be overcome before the home can change ownership and the keys are handed over. Failing to overcome any of these hurdles could result in the deal falling through and you starting the journey from the first step.
    • 17 Oct 2017
      It is relatively straightforward to make a good property investment when the economy and housing market are booming. As the old saying goes - a rising tide lifts all boats. However, says Sandra Gordon, Pam Golding Properties senior research analyst, when the economy is struggling with low growth – as South Africa’s currently is, there are still opportunities for investments
    • 17 Oct 2017
      In recent years, residential property investment has been highlighted for its value as an income stream when the property is bond-free, especially for those owners in their retirement years.
        
    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