Mining Driving Lydenburg Market

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12 Dec 2008

Platinum mine expansion is proving a key driver of growth in the Mpumalanga towns of Lydenburg and Burgersfort.

So says Elisme Swart, area principal for Pam Golding Properties (PGP), who adds that Burgersfort in particular has experienced dramatic growth in a short period of time.

"Due to expansion of mines surrounding both towns new home buyers are moving in - mainly from areas such as Rustenburg, Welkom, Krugersdorp, Fochville, Carletonville, Klerksdorp, Mooinooi and Thabazimbi.

"Over the past two years Burgersfort has experienced a rapidly growing demand for housing which has seen growth in the property market of 61% per annum over the past five years. As a result of the shortage of stock on the market, anything worthwhile that is correctly priced sells immediately. And given the high demand, unserviced farmland located close to Burgersfort and Steelpoort sells for R1m per hectare - with most of the available land already taken up."

Currently, a two-bedroom flat of 85sq m achieves a rental of R5,500 per month in Lydenberg and Burgersfort alike. Townhouses with three bedrooms, two bathrooms and single garage are let for R7,500 while an ordinary three-bedroom, two bathroom house with double garage fetches between R8k and R10k per month.

PGP anticipates this demand will be further boosted by an increasing demand from the mines and contractors moving into the area over the next few years. There is already significant investment in infrastructure with a new hospital, construction on De Goede Dam has begun and a major hydro power plant is to follow – all of which will draw new people into the area.

Swart says house prices in these towns are mainly between R700k and R2m. The selection of homes is limited at present – current prices start at R800k for a three-bedroom, two-bathroom home with single garage, with other homes listed between R1m and R3m.

In Burgersfort there are three existing security estates and a fourth large development recently launched. Prices of available properties in these developments are from R400-R450 per sq m for stands ranging in size from 500-1,000sq m and from R950k up to R1,3m for completed houses.

Swart says that in Lydenburg there are two security estates – The Heads with 220 erven and Sterkspruit comprising 120 stands in the first phase, 65 in the second, and another 1,000 erven planned. Houses in the area range from R700k-R1,3m.

Another new development – which is not a gated estate but an open area called Mashishing – will comprise 101 erven and cater for the middle class market.

"The latest trend in Lydenburg is restoring some of the original old, character houses to their former glory and we also note companies buying high-visibility homes on the main route into the town, in Viljoen Street, and converting them to offices. Being located en route to major tourist attractions Lydenburg - with its good infrastructure including schools and a new shopping centre being built adjacent to The Heads. Both security estates are popular among home buyers and those wishing to rent. As mining houses usually have first option on homes in new residential developments this increases the shortage of rental houses for those not in the mining industry."

Image 1: Situated next to the Lydenburg/Sterkspruit River and set on a 5,700sq m stand, this double-storey is marketed at R3,4m.

Image 2: Located in Lydenburg and set on 3,700sq m, this guesthouse is priced at R5m.

For more information contact PGP Lydenburg on 013 235 1146.

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