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Property investment hotspots in the Northern Cape

13 Apr 2018

House prices in the Northern Cape are reflecting robust growth as the demand for residential accommodation outstrips supply.

This four bedroom, four bathroom home in Springbok is currently run as a guesthouse, and can easily be used as a family home. The property has a flatlet, and is selling for R2.2 million - click here to view.

With a mining revival, and commodity rebound, declining unemployment, meaningful expansion of medical facilities and shopping malls, increased investment in manufacturing and construction of a new university well under way, the capital city of Kimberley’s economic outlook is extremely positive, which augurs well for the continued growth of the residential property market in this region.

This is according to Val Spathelf, area principal in the Namaqualand area of Springbok and Kimberley in the Diamond Fields.

“During 2017 house prices in the Northern Province surged to 20%, according to the Pam Golding Residential Property Index,” Spathelf adds.

“Mining activity has had a major impact on the province’s economy. The recovery in national mining production since late-2016 seems to be fuelling higher levels of economic activity in the Northern Cape, providing a solid underpinning for house prices in the region.”

This three bedroom, one bathroom home in Pofadder is set on a 4 461sqm erf, and has a flatlet. Furniture is included in the listed price of R870 000 - click here to view.

The province’s rental market is also feeling the positive effects of the national recovery in mining production. With average growth in 2017, it is home to the second strongest rental market in South Africa, according to PayProp.

“Helping fuel the property market in the region is a strong demand from BBBEE-compliant companies which are awarded government contracts, requiring commercial property to lease,” says Spathelf.

“Towns in Namaqualand, such as Springbok and Pofadder, are set to benefit from an increased demand for residential rental accommodation from employees and business partners as a result of the new Gamsberg open-pit zinc mine about 30km from Aggeneys en route to Pofadder, a project set for start up in mid-2018.

This high-end home in an upmarket suburb in Kimberley has five bedrooms, three bathrooms and a pool. It is selling for R5.3 million - click here to view.

"With a capital investment of some $400 million, this is reported to be the largest mining project under way in South Africa. As this is situated in the ecologically sensitive Succulent Namaqua Karoo Biome, a critical component is the mine’s biodiversity drive.”

Situated halfway to Windhoek from Cape Town, the Namaqualand’s economic, tourism and farming hub of Springbok recently saw the construction of a new 87-room hotel and the Namakwa Plaza. A further positive for the region is a proposed wind farm on the N14, 42km from Springbok in the Boesmanland area, which will further boost the demand for residential rentals.

Spathelf says sales in the Northern Cape’s capital city of Kimberley are picking up, with about 90 homes a month changing hands across the entire market, of which about 65% comprise mainly cash buyers. New projects in the pipeline include a 90-unit townhouse residential development to cater for the ever-increasing demand for housing.

This four bedroom, three bathroom home in Springbok has free-flowing entertainment areas. It is on the market for R2.5 million - click here to view.

“Significant infrastructural and other investment in the city spans several sectors, including health, mining, agriculture, manufacturing, retail, major shopping mall expansion, as well as ongoing expansion of the Sol Plaatje University, all of which impact positively on the demand for housing, both to buy and to rent,” says Spathelf.

“Of further relevance to home buyers are new private schools, including a Curro School, which are on the cards, while the recently opened R400 million Lenmed Royal Hospital and Heart Centre is attracting new medical staff, who in turn seek residential accommodation.”
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