Investor interest in property in the heart of Mpumalanga has risen significantly over the last year – parallel with Eskom's expansion of its power station capacity and an increase in coal-mining activities.

Describing these as the province's two major economic contributors going forward, local members of real estate market leader NRN / Team International are upbeat about growth prospects for the area, which lies less than two hours from Johannesburg on the road to the Lowveld.

According to them, properties in Witbank and nearby towns such as Middelburg and Ermelo are in high demand. "We are currently assisting close to 1 000 clients in finding suitable homes to buy or rent," says Dorothy Snyder of Acutts Middelburg, adding that investors from nearby cities are also increasingly turning their eyes to Witbank.

"The workforce of both the power stations and coal mines in this area used to be our main clients, but of late this is being supplemented by numerous new shopping centres which are proving to be major draw cards for business entrepreneurs and corporates," she says.

According to Snyder, this has contributed to a very active rental market where the monthly average for a house has now risen to around R4 000. However, she adds, newcomers are showing a definite preference for buying once they have settled in the area despite having to fork out more on bond installments, owing to a strong belief in the long-term benefits of home ownership," she notes.

Not only are homes in middle income suburbs such as Highveld Park moving well, with the average selling price for a standard three bedroom home having breached the R700k mark, but there is also healthy activity at the top end of the market. Ever-popular, the exclusive suburb of "Die Heuwel" for example is now seeing entry level properties selling for just under R2m, she says.

"We have no problem in finding buyers for properties priced in the upper-million bracket, although units in townhouse developments, though selling well, do not seem to be our buyers' preferred choice at the moment."

Foreseeing a leveling out of activity in the middle segment of the market within the next couple of months, Snyder does not believe that the upper end of the market has reached its peak yet. "Witbank is finally on the map and will remain there," she predicts.

The property market in Ermelo, roughly 130km from Witbank, is being characterised by a different set of fundamentals as prospective buyers widen their search to incorporate nearby towns such as Hendrina and Carolina. According to NRN Team International Homes member and Assist2Sell principal Annemarie Drodskie, while the average property price in Ermelo ranges between R700k and R850k, Hendrina and Carolina, both within a radius of 30km, have properties from around R450k. In the town, where executive properties in upmarket suburbs such as Extension 17 can be rented for as little as R4 500 a month, the middle market is currently shying away from home ownership, she says.

"But strangely enough, properties at the top-end of the market, when available, are moving quickly. I recently sold a property for over R2 million and am currently marketing another in the same price range. I do however feel that realistically speaking, the entry level in Ermelo should be around R550 000," Drodskie says.

Middelburg, which lies halfway between Witbank and Ermelo and is colloquially known as the stainless steel capital of Africa, has properties to offer from R700k upwards, although most stock on the market currently averages well over R1m. According to members of local NRN Team International Homes agencies, the town is bursting at its seams and demand for properties in the R2m plus range is no longer uncommon. - Ingrid Smit

For more information contact (041) 581 8143.

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