The housing market in mining towns, such as Rustenburg, Witbank, Middelburg and Secunda continues to battle – and job losses caused by mines and vital industries closing shop is but one aspect of the cause.
“Few areas have an oversupply of rental stock in medium price ranges, but a town like Secunda, for instance, has many vacant homes due to uncertainty in the market,” says Seeff chairman, Samuel Seeff. “This area – just like some other areas further away from the metros – needs new and modern sectional title complexes to accommodate the budget of especially first-time buyers.”
In Middelburg and Witbank the mines restructuring and Highveld Steel closing down have seen thousands of families affected, with many homeowners forced to flood the market with homes for sale, making them each a buyers’ market in certain suburbs and price categories.
Mpumalanga’s capital city, Nelspruit, is conversely experiencing a wave of cash buyers – a figure of about 30%.
“The demand for rental property also remains high, especially for two-bedroom homes that are pet friendly and priced below R10,000 per month,” said Seeff, noting that some corporate rentals can fetch prices of up to R80,000 per month. “Nelspruit also needs new developments to alleviate the stock shortages and rental demand, but this is due to stock in the area being severely under pressure and demand outstripping supply.”