Despite the slower market, Mbombela (formerly Nelspruit), the capital of Mpumalanga, remains one of the most successful inland cities in the country, according to Anthony McGuire, licensee for Seeff Mbombela. Lightstone data also shows that despite a slower market, property buyers invested up to R5 million to R10 million for luxury homes in the sought-after estates in the city.
Mbombela, in the heart of the Lowveld, is just under four hours from the Gauteng metro area and is the gateway to the Kruger National Park, one of the most visited game reserves in the world. The Mbombela Stadium is a landmark in the city with a busy economic and residential sector.
The province of Mpumalanga is home to South Africa’s Coal Bel, which produces more than 80% of the country’s coal and various other minerals. There is also a cluster of 12 power stations, three of which are the biggest in the southern hemisphere. Other economic drivers include agriculture, tourism, and the Maputo Corridor.
McGuire says the great Lowveld weather makes it an attractive place to live and invest. The bushveld surroundings are also a big attraction. There is a steady influx of people moving to the city for economic reasons. Most people move here from elsewhere in the same province or from Gauteng. Buyers comprise a mix of first-time buyers, professionals, and retirees.
West Acres, Ilanga, and Stonehenge are the most popular suburbs for first-time buyers, while Sonheuwel, West Acres, and Steiltes are ideal for family buyers.
After the 2021/2 market boom, when transaction volumes averaged 1,550 per annum, Lightstone data shows that sales volumes declined to around 1,104 transactions for the 12-month period to the end of September, with a total value of just over R1,687 billion. Prices have also declined by 4.28% as the market has tightened.
Nonetheless, the data shows that buyers still have confidence and have invested up to R10 million in luxury homes over the last 12 months. These were predominantly in estates such as Shandon Estate, where prices reached R7.35m to just under R10m, Elawini Lifestyle Estate, which reached R6.5m, Matumi Golf Estate, reaching R5.25m, and Bataleur Estate, reaching R5.1m.
The data shows that 40% of all transactions were above R1.5 million. According to Seeff’s agents, the most active price band is between R1.5 million to R3.5 million. Only about 7% of all sales were above R3 million, mostly freehold and estate houses. Estates have grown enormously and now makeup 43% of all property stock.
McGuire says eco- and wildlife estates are popular. These include The Rest Nature Reserve, an eco-estate with upmarket homes priced at R2.5 million, Ntulo Wildlife Estate, priced at R1.8 million, and Shandon Wildlife Estate, priced at R3 million.
Freehold houses range from around R1.7 million to R3 million, and sectional titles from R600,000 to R1.5 million. There is also plenty of vacant land for investment or to build your dream house, ranging on average from R300,000 to R1.2 million.
Wildlife and commercial farms are also popular and range from around R3 million to R12 million depending on the farm and infrastructure. Homes in wildlife estates range from around R1.5 million to around R4 million, depending on the estate.
Although active, the rental market is characterised by high rents and high growth rates, which is problematic for tenants, according to Seeff’s agents. According to the PayProp Rental Index, the average rent for Mpumalanga stands at around R8,484 per month. Growth declined to around 2.4% in the second quarter of 2024.
The market and excellent price growth achieved during the boom years show that property is a good investment in Mbombela.
