Capital projects set Emalahleni market alight

Posted On Wednesday, 25 May 2011 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

As the “coal capital” of South Africa, the city of Emalahleni in Mpumalanga is the new "power house" of the region.

Brian Dames“The massive effort to boost SA’s power supply is centred here,” says Hein Strydom, owner of the local Aida franchise, “and the city, formerly named Witbank, together with the neighbouring town of Middelburg, is now responsible for 43% of the province’s GDP.
 
“There are already five power stations going full-tilt here, another (Kusile) under construction and a seventh being planned by Anglo Coal. And while there are already some 45 coal mines in operation, at least four new ones are set to open to supply the new power stations.”
 
In addition, he says, the strategic location of the city at the junction of the N4 and N12 highways in the Maputo Corridor has attracted huge steel and chrome manufacturing concerns, and to facilitate exports, Transnet is now spending millions of rands to upgrade the railway links to Maputo harbour.
 
“As the economic nerve centre of the province, Emalahleni already supports amenities such as a regional shopping centre, three hospitals, a Tshwane University of Technology campus, the Eskom regional office, and the headquarters of many mining companies, and now because of all the new capital projects, even more people are pouring into the city in search of both rental and permanent accommodation.”
 
Consequently, unlike most other parts of SA, Emalahleni has experienced a surge in property sales over the past year, with demand strongest at the lower end of the market, where house prices range from R470 000 to R700 000, says Strydom.
 
“And we are now also experiencing improved demand for mid-range housing in the R900 000 to R1,5m bracket.”
 
The demand for light industrial, agricultural and commercial properties has also been high in the light of the increased local demand for goods and services of all types, he says, but sales in these sectors have been hampered by the banks’ reluctance to lend to self-employed individuals.
 
“Meanwhile, the rental market is booming, with many buy-to-let investors now able to achieve a rental income to bond expenditure ratio of up to 95%, provided they buy the right property.”

Last modified on Monday, 19 May 2014 08:55

Most Popular

Pam Golding Properties Annual Residential Property Report 2019

Nov 08, 2019
SA Reserve Bank
Signs that the residential property market is beginning to stabilise.

Rebosis Property Fund retail portfolio delivers excellent operational performance despite a tough market

Nov 11, 2019
Sisa Ngebulana REBOSIS
Rebosis Property Fund, the JSE’s first listed black-managed REIT, today reported its…

Massive property auction on behalf of Telkom

Nov 11, 2019
Agricultural Land Beaufort West
GoIndustry DoveBid SA (GoIndustry) is hosting a massive property auction on behalf of…

SA REITs featured among the JSE’s most empowered companies

Nov 08, 2019
Estienne de Klerk SA REIT Chairman
In order of most empowered, the REITs are: Arrowhead Properties, Redefine Properties,…

African Union for Housing Finance (AUHF) Cape Town declaration provides 5 point plan for african governments to address housing finance shortage

Nov 14, 2019
African Union of Housing Finance
Following the successful completion of their 35th Annual Conference, the members of the…

Please publish modules in offcanvas position.