Ongoing expansion on Sasol’s projects in Secunda, Mpumulanga has ensured that the residential property market in this town is kept alive and well, catering for some 25 000 employees at this mega complex.
This is according to Natasha Herbst from the Rawson Property Group’s Secunda franchise, who says everything that happens in Secunda, such as the recent restructuring of employees on the Sasol’s Phoenix project, can affect the property market.
“The fairly large number of people who have had to sell their homes as a result of the latest developments did result in local home sellers adopting a far more realistic attitude to their pricing, and this has led to more homes being sold.”
Asked just how serious this adjustment in price levels had been, Herbst says typically the owner of a home previously priced at R2.7 million would probably have had to accept a price of R2.4 million or R2.3 million.
She says the prices of the 17 000 middle class homes in Secunda range from R1.2 million to R4 million, the big demand being for those below R2 million. In the sectional title market, which comprises 40% of the total market, the price range is lower.
"The Secunda market has for some three months now not been skewed in favour of the seller, while this means that our stock levels can be satisfactory, often going above a figure of 50, it also means that buyers can now be far more selective and take more time before making a decision.” Buyers today are definitely not signing as quickly as they used to, she says.
Herbst says homes which are selling particularly well are those in the new 426 unit The Gayle development in Evander.
In this area, for the first time in some years, new homes are coming onto the market at prices well below the average for Secunda. Sectional title units at The Gayles are priced from R557 000 to R571 000, while freehold homes are selling from R612 000 to R790 000.
As would be expected in a town that sees much coming and going, especially from contractors who work for limited periods at Sasol, the rental market is excellent, says Herbst.
Homeowners are able to rent out unfurnished three bedroom homes for R8 000 to R9 000 per month, while furnished units can command rentals of R12 000 to R15 000 per month.
Those investors buying units in The Gayles will probably be able to achieve rentals almost double the cost of their monthly home loan payments, she says.
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