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Vredendal experiences property need

30 Aug 2007

Vredendal, a peaceful town in Namaqualand that draws scores of retirees, is currently experiencing a severe shortage of residential property, especially in the rental sector.

Sectional title properties such as flats and townhouses rarely come on to the market here because owners are earning excellent rentals, says Annemarie Koch, owner of the local Aida real estate franchise.

"There is a great demand but these properties are like gold. Investors earn from R1,200 to R2k a month for small flats and up to R3,500 a month for townhouses. This represents an excellent return on their original investments," she says.

"Consequently, the market is now wide open to developers who could meet the growing demand for such properties. The Namakwa Sands mine is expanding its operations in Brand se Baai, about 100km from Vredendal, and its employees are looking for accommodation in Vredendal and nearby Lutzville, since no housing exists closer to the mine.

"Most of these mineworkers are looking for rental accommodation. But, at the same time, there is an equally great need for housing in the R500k to R600k price range for local buyers who cannot afford the current entry level prices of around R750k for free-standing homes.

"Any developer who could bring units to the market at these price levels would find no shortage of buyers among locals and investors alike," says Koch.

But while there is ample land available for development, very little has been supplied with services. Koch says the local municipality is experiencing problems with service delivery while the water supply is being stretched because of growing demands on the capacity of the Clanwilliam dam that supplies the town.

"However, these problems are not insurmountable. A Cape Town developer has just announced that a planned development on the outskirts of Vredendal is going ahead and it is hoped that construction will start around August. The project is still in the planning stage but residents in Vredendal are eagerly awaiting more details."

For more information contact 027 217 2477.

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Vredendal experiences property need

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