Bronkhorstspruit draws developers

Strong rental demand for residential units in Bronkhorstspruit is encouraging new development.
Developers are buying large “burgher” stands in town and demolishing old homesteads to make way for small townhouse developments of up to eight units or higher-density blocks of apartments, says Koos Pretorius of leading local estate agency, RealNet Kungwini.
“Rental demand is growing strongly thanks to the inflow of contractors working on the Kusile power station situated between Bronkhorstspruit and neighbouring Witbank. Rental stock levels are low, and this has created a gap in the market for developers, who expect demand to be sustained well into the future.
“Apart from the Kusile project, the multi-purpose pipeline currently under construction between Kendall and Waltloo in Pretoria is supporting the rental demand even further, while long-term accommodation will be needed for staff once the power station is commissioned.”
Rentals start at around R2500 a month for two-bedroom apartments and average around R4000 a month for small three-bedroom homes. Prices for two-bedroom apartments start at around R400 000 while three-bedroom townhouses sell from R500 000.
Pretorius adds that luxury property around the Bronkhorstspruit dam commands high rentals among international professionals on contract at Kusile. However, demand in this market segment is slim.
To cater to the burgeoning rental market, RealNet Holdings has entered into a partnership with national rental agency MidNet, which manages a countrywide portfolio of more than 18 000 properties.
“It has a tried and tested rental system which will hold many benefits for our clients. The whole process, from credit checks on prospective tenants to collecting rentals and taking legal steps against defaulters, will be expertly managed. We foresee that this value-added service will be popular among investors from elsewhere, since it will make a hands-off approach possible without running risks of non-payment or neglect to their properties,” Pretorius says.
The agency’s rental portfolio has grown exponentially in the course of the past year and additional agents are currently being recruited to boost the agency’s rental department.
Issued by RealNet
Loading comments
More news articles
Guidelines to securing a home loan
29 May 2018
Many young South Africans are working hard to achieve their dream of purchasing their first home. However, the process can be challenging due to the daunting application process, which can take up to 2 years and is often enough to discourage prospective buyers.
read more
Things you should consider before upgrading to a new home
23 Apr 2018
The thing about the property ladder is that at some point in our lives we all have reason to want to climb a rung or two higher. Sometimes, it’s because we’ve outgrown our previous dream home, or because we want to be in a better neighbourhood that’s closer to work or to schools. Sometimes it’s because our circumstances have changed, and we’re taking care of elderly parents or relatives. Sometimes, it’s just because we want a property that reflects the financial status our hard work has won.
read more