Expanding iron ore and manganese mining activity near Kathu in the Kalahari is boosting the region's economy, and the housing market in particular.
Situated in Kuruman, this four bedroom, two bathroom home offers a study, braai area and a two bedroom flatlet. It is priced at R2.7 million - click here to view.Dr Hardus van der Westhuizen, owner of the Chas Everitt Kuruman and Kathu real estate franchise, says prospects for the region in the short, medium and long term are excellent, and new commercial, industrial and residential development is a major spin-off of the jobs being created by expanding mining operations.
He says a new mall in Kuruman is under construction, with the opening date set for the end of the year and smaller shops and restaurants are proliferating in Kathu and surrounding towns such as Vryburg.
A regional casino is also currently under construction and will provide further job opportunities. At the same time, demand for industrial space is increasing as more mining support industries set up shop here, he says.
This four bedroom home has three bathrooms, an open plan kitchen and lounge, a built-in braai, fireplace, a study and two garages. It is priced at R2.5 million - click here to view.Dr van der Westhuizen says residential demand is strong thanks to the inflow of new residents employed at the mines, as well as in the commercial and industrial sectors. He says in spite of the new Westwood residential extension in Kathu, stock levels are again under pressure.
Homes priced at R1 million and less are in great demand, but Van der Westhuizen says stock in this category is virtually unobtainable. Most three bedroom family homes now sell for between R1 million and R2 million, while stock is more readily available in the R2 million to R3 million price range.
According to Van der Westhuizen rental stock is also under pressure, and although mines include rentals in pay packages, there is currently little interest among buy-to-let investors as current house prices in the area make for unsatisfactory returns.
This four bedroom house in Kathu Golf Estate offers a study, double garage and braai facilities. It is on the market for R3.7 million - click here to view.Local homeowners have, however, stepped into the breach and many attached or separate cottages and flats on large properties are being offered for rent. “In fact, in some cases, owners have let their homes and moved into the smaller accommodation themselves to maximise rental earnings.”
Van der Westhuizen says one bedroom flats currently achieve monthly rentals of between R3 000 and R4 000, and two bedroom units achieve up to R6 000, while three bedroom units typically achieve between R8 000 and R10 000 a month. Luxury homes in the Kathu golfing estate are being let from about R20 000 per month.
Meanwhile, he says the fast pace of new development and the growing number of new residents is putting local infrastructure under pressure, and while some roads are already being upgraded, they foresee the need for significant improvements to other elements in future to keep pace with the region’s growth.
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