Unprecedented industry growth in the energy sector is luring a mix of buyers to Lephalale (Ellisras) in Limpopo.

Margarita Geyser, Broker/Owner of RE/MAX Adventure Properties, says there is a true mix of buyers, which comprise mostly contractors that are “semigrating” from all over South Africa and bringing their families with them. “Most of the buyers are selling up their homes, moving to Lephalale and buying new homes in the area. I would say that approximately 90% of these buyers work for either Exxaro or Eskom, and that the remaining 10% comprise private entrepreneurs or business people.”

Geyser says Lephalale is currently home to the world’s largest dry-cooled power station, Matimba, as well as the world’s largest open cast coal mine, Grootgeluk. She says the World Bank’s multi-billion rand loan to Eskom that was approved earlier this year has ensured the development of the Madupi Power Station, which is currently in the process of being built.

She notes that Lephalale is also a hotbed of other new industrial developments as well. “Another mine, the Exxaro Coal Mine, is expanding to the tune of R9,5bn, the construction of another brand new coal mine, Boikarabelo, is in the pipeline and is set to begin early next year, and Eskom is busy with Environmental Impact Assessments on the possibility of building a further three new power stations as well as the possibility of developing a coal-to-liquids plant for Sasol.”

And of course, with all this new development, comes an influx of new residents and an increased demand for housing and various lifestyle amenities. “At this stage, Lephalale has about 45 000 people living in the town. By 2016, the town population is expected to increase to 100 000 people, and by 2030, the population is estimated to be in excess of 200 000. Obviously, this is a great prospect for real estate in the area.”

The price of an average entry-level, newly built, two-bedroom home in Ellisras ranges between R600k and R1,3m. Prices of mid-level homes, which are usually situated on a stand of approximately 1,000sqm and measure around 150sqm under roof, range between the R850k and the R1,6m mark. Homes at the upper-end of the market begin selling at around R1,7m.

Assis Pontes, area principal for Pam Golding Properties (PGP) in Lephalale, says he is seeing big demand for sectional title units ranging in the R670k mark. “These mostly have two bedrooms with two bathrooms, and various other formations. Investors from Durban, Cape Town, Prieska in the Karoo and Mossel Bay have been keen buyers.

“Entrepreneurs moving to Lephalale are buying, thanks to the growth projects such as Medupi and the Exxaro expansion, and many want to be positioned for growth.”

According to Geyser current residents are cashing in on the increased demand for real estate by sub-dividing their properties and either selling the land or building a house or flat on it and letting it.

Obviously, along with the increase in demand for residential property, Geyser says that there will be a lot of development with regards to lifestyle amenities in the area. “A new R600m shopping centre is currently being developed and is set to open its doors in September next year. Located on a 12ha site in Onverwacht, adjacent to the existing town centre, the development includes a 42,000sqm shopping centre. In a linked project, developers plan to build a 17,000sqm office park adjacent to the shopping centre as well.”

Pontes says rentals are driven by corporates in Lephalale and quality homes that offer lifestyle are always sought-after. “A well-appointed four bedroom home with pool on the golf-course will rent for up to R11k per month. Though rentals have adjusted to market conditions a two-bedroom unit will fetch a rental of R6,500 per month.” – Eugene Brink

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