The latest stats from Lightstone Property reveal that house price growth in the Northern Cape has caught up with the ever-popular Western Cape. Annual house price inflation for both these provinces is at 3.9% which is well above Lightstone’s national average of 1.7%.
“The Northern Cape has reflected strong house price growth in 2019 and presents a good investment opportunity for real estate investors who do their research and consult a local real estate practitioner who can steer them in the right direction,” says Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett.
One such local real estate practitioner is Elretha van der Merwe, Broker/Manager of RE/MAX Kalahari, Kuruman. She explains that Kuruman is experiencing a buyers’ market and, on average, homes are taking at least 3-6 months to sell if they are priced correctly. Van der Merwe explains that landlords can currently expect rental returns of around 0.8 - 0.9% of the value of the house per month.
“Many of our sellers or either emigrating or upgrading. Buyers are looking for modern, lock-up-and-go places with minimum maintenance. Given current market conditions, I would advise sellers not to overprice their home and I would recommend that buyers to shop around to find the best deal,” she suggests.
Lastly, in terms of investment opportunities, Van der Merwe highlights the new development on the R31, coming in from Hotazel and close to the new Mokala Mall. “There were 150 empty residential stands available when we started marketing this development in mid-December 2019. Half of these stands have already been sold. Prices are just below market value, which presents a fantastic investment opportunity for buyers and explains why they are being snatched up so quickly” she points out.
Whether buying or selling, Goslett again emphasises the importance of consulting a real estate practitioner who can fill you in on local market conditions such as the above. “This information can help buyers and sellers make more informed decisions when it comes to managing their real estate transactions. It can also keep them aware of potential opportunities or threats within their local market,” Goslett concludes.
