Utrecht - price growth up 400%

An independent republic until 1859, the town of Utrecht in Northern KwaZulu-Natal is currently undergoing a facelift that has fuelled its property price growth by 400 percent in the last 18 months.

Its new image is in keeping with the Amajuba District Municipality's vision of creating a vibrant and sustainable economy for the area by 2015, says Sakkie Beneke, manager of the Utrecht branch of Realty 1 International Property Group.

Until recently the town was best known for its mining and agricultural sectors, says Beneke, but now it is well on track to becoming one of the province's most sought-after tourist and residential destinations. "Utrecht is uniquely positioned within a game park. It is also superbly located midway between Durban, Johannesburg and Richards Bay and enjoys close proximity to the Drakensberg, hence its marketability as a tourist destination, he says.

Within easy commuting distance of the region's economic hubs, namely Newcastle and Vryheid, Utrecht is also becoming a favourite residential choice. "Many people who live in Utrecht work in Newcastle which is an easy 40 minute drive with little traffic," he says.

Currently being marketed as the "Town Within A Game Park", Utrecht is one of the few places in the country where wild animals are frequent visitors to the town. And it's this unique natural setting, which also happens to form part of the internationally renowned Battlefields Route, that has catapulted the town into the limelight, he says. As a result, buyer numbers have surged in recent months, triggering unprecedented property price growth. Homes that sold for R70 000 less than two years ago, are now selling for between R350 000 and R400 000, says Beneke, and in the same vein, people are willingly paying more than R100 000 for vacant stands that were priced at around R8 000 in mid 2003.

According to Beneke, intense and ongoing demand for housing has also breathed new life into the old and traditionally far less popular part of Utrecht. "Because many of the houses here were built on clay soil without the right foundations, they ended up cracking, which obviously had a negative effect on property values. Now, in response to the demand, these houses are being restored and new homes are being built on proper foundations. The result is that it's become a prime residential area where houses are priced from R500 000 up to R1 million, which is high by Utrecht standards although low by comparison with what you would pay almost anywhere else."

Price growth appears to have levelled out since the beginning of 2006, but it's likely to be a short-lived lull for two reasons, says Beneke. One is the local municipality's ardent support of the development of the Utrecht Community Game Farm while the other refers to the possible launch of a large residential and retirement eco / golf estate. These two initiatives, he says, are expected to attract end users, investors and retirees to the area in droves.

For more information contact mike@realty1ipg.co.za. or visit www.realty-1.co.za.

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