Property prices in Kalahari towns have grown exponentially thanks to increasing iron ore mining activity in the region.
In some instances prices have more than quadrupled in the past two years, says Gerrit Vos, co-owner of the Aida franchise in Kuruman, which also has offices in Kathu, Olifantshoek and Postmasburg.
"The whole region has benefited hugely by increased mining activities at the Kumba and Khumani mines. Prices in Olifantshoek and Kathu especially have grown phenomenally, albeit off a low base.
"Properties that would have sold at R150 000 in Olifantshoek and R250 000 in Kathu two years ago now sell at around R650 000 and R750 000," he says.
"The market is being underpinned by demand that outstrips supply. Rental accommodation needed for contractors at the mines has created lucrative investment opportunities – rentals of up to R16 000 a month for four-bedroom homes are not uncommon.
"It is unlikely that rentals at these levels will be sustained for more than a year or two, but property values are unlikely to decline. At most, they are expected to move sideways," Vos says.
Local authorities are currently upgrading infrastructure to supply services such as electricity and sewerage to new residential areas.
In Kathu, where 380 stands at a new golf estate were snapped up recently, another 730 stands are expected to be released by the middle of next year when services to the site have been completed. Vos expects brisk demand for these stands.
The buoyant residential sector has also stimulated commercial development, with a new shopping complex planned for Kathu. A national food chain has been signed up as anchor tenant and several other chains, such as clothing stores, will be represented.
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