Bronkhorstspruit draws developers
- 27 Nov 2009
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