Eskom loan lifts Ellisras property market
News of Eskom’s approved World Bank loan has given the property market in Ellisras, home of the Medupi power station, a shot in the arm.
Petrie Bezuidenhout, owner of the local Aida office, reports that enquiries for all types of property climbed steeply in the wake of the news.
“The residential market in particular had been moribund since about November last year, but in April enquiries and interest started to improve markedly – and we expect further improvement once the World Bank funds become available,” she says.
Rentals have been the mainstay of the local property market for the past six months because units are in strong demand among contractors at the nearby Medupi power station and local coalmines.
And, says Bezuidenhout, stock levels still favour buyers, who have the opportunity to shop around, “although the situation could change fairly quickly if current interest levels are sustained”.
Demand for industrial property has also picked up, with several mining-related concerns looking for manufacturing space, and commercial development is strong, with a new 6000sqm shopping mall in the planning stage and several existing shopping centres in the process of expansion.
Prices for residential properties in the town now start at around R600 000 – for a one-bedroom flat or an old mine house. Three-bedroom family homes, however, now sell for an average of R1m, while luxury homes around the golf course are selling for around R2m.
In the rental market, homes that can accommodate up to six contractors achieve rentals of between R10 000 and R20 000 a month.
Issued by Aida National Franchises