Buyer interest up in Vaal Triangle

Heidelberg, Vereeniging and other Far East Rand towns have seen an upturn in buyer interest in recent years.

The small-town atmosphere coupled with large, older homes and bigger erfs and the lower crime rate have made the area a popular choice.

"The Three Rivers area in particular is where everyone wants to stay," says Annelie Ryciak of Realty1 Vereeniging.

"This is where everything happens. It is not far away from freeway access and close to the River Square shopping mall as well as having good English and Afrikaans primary and high schools."

"In terms of second hand sales, clients are mostly looking for ordinary three bedroom houses with double facilities, on a erf size of approximately 1,000sq m, and at prices ranging between R500k and R700k max," she says.

"This also counts for secure complexes."

The biggest problem of recent times, says Ryciak, is the difficulty in getting home loans because of the National Credit Act (NCA) affordability criteria.

"Even in the agricultural areas such as Vereeniging, Sebokeng, Sharpeville and surrounds, nothing is happening without mortgages," she says.

"Some of the banks only grant 80% or 90% loan-to-value and most of the time the buyers don't have the difference for a deposit."

However, Ryciak adds that the township areas like Sebokeng are doing well and are currently seeing the most sales. She attributes this to the area having mostly black agents on board and catering well for the lower income groups.

Rentals now account for 80% of the demand for homes, while sales are only 20%. Ryciak foresees that this will remain the case until house prices have dropped some more, which she expects to happen.

There is substantial economic growth planned for the region, with Anglo Coal's Heidelberg project expected to provide 10 Megatons of coal per year, and the R11bn New Multi Project Pipeline (NMPP) which will move petrol, diesel and jet fuel from Durban to Gauteng by 2010.

International brewer Heineken's proposed new 3m-hectolitre brewery is set to be built in the Sedibeng district which encompasses Heidelberg, Sharpeville and Vanderbijlpark.

"This is bound to benefit the area in terms of property sales. We just have to sit out the tough times and wait for things to improve."

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