Louis Trichardt has good returns

Re-sales in certain new residential developments in Louis Trichardt in the Limpopo Province are showing unheard-of returns on investment of up to R100k – prior to the units even being registered.

That's the word from Gwen Loots, principal of Realty 1 International Property Group in Louis Trichardt, on the state of the town's property market, which is being fueled by its bustling business sector.

Part of the reason for the strong uptake of residential property is a steady influx of new employees to the AFB Makhado Flight Centre, which has been adding to its quota of fighter aircraft over the last few months, she says. This, coupled with Louis Trichardt's growing business and agriculture-driven economy and the steady movement of emergent buyers relocating from the townships to be closer to their places of work and amenities, is ensuring that the town's real estate sector stays on the boil.

Despite the propensity by some sellers to over-price their properties, there is still relatively good value for money to be had in the town, Loots says.

"Developers are catering predominantly for entry level and middle class buyers where most demand lies. This is evidenced not only by the recent construction of the 28-unit Willows development, which sold off-plan for R540k per unit, but also by the imminent launch of another, as yet unnamed, complex."

It is The Willows development that has seen record returns being made for investors who bought off-plan in October 2006 when it was launched and who are now selling for profits of up to 27%, she adds.

Currently awaiting municipal approval for the project, Loots says the developer intends to follow the same lines of affordability and security as his pilot project.

Units, which will each be around 160sq m, will be set within a secure perimeter wall topped with electrified fencing. To ensure further peace of mind for residents, which is already rising in the face of the efficacy of the town's neighbourhood watch which her company supports through its annual "Christmas in July" fundraiser, there will also be access control and automatic gates.

"Security and ease of living feature at the top of most of our current buyers' shopping lists," says Loots, who will be involved in the off-plan marketing of the new development.

On completion, the development will comprise around 28 sectional title units which will be priced at R640k each. Sited in an area known loosely as Under Rissik Street, Loots says the locale is fast shedding its former stigma in the face of this type of quality development, much of which is taking place on subdivided stands that once formed part of private home owners' gardens.

While the average home here sells for between R800k and R900k, it's no longer unusual to list homes of up to R2,5m in the area.

For more information contact 015 516 3160/5 or send an email.

Readers' Comments
Have a comment or question about this article? Email us now..

Get up-to-date property news
Would you like to receive free weekly news and information about property in South Africa? Sign up now for Property24's Week in Review.

Property News
Click here for more property news articles.

Need a blog?
Start your own blog with a free blog from 24.com.