Plenty of South Africans prefer the northern provinces of Mpumalanga, Limpopo, and North West for their bustling economies in mining, agriculture, and tourism, according to the Seeff Property Group.
In fact, some 21,317 property transactions worth almost R21.4 billion were recorded for these three provinces last year. Sustained demand is boosted by a steady influx of new residents moving to the main towns for economic opportunities, according to Seeff’s branches.
The areas have seen good house price and rental rate appreciation. While these provinces offer very affordable house prices and rents, the areas also offer sought-after security estates, including those with bush, and golf experiences, and luxury homes achieving prices of up to R5 million to R8 million and sometimes more.
Property markets in these provinces are most active below R1.5 million to R2 million with stock shortages often a common issue. Estates make up 22% of all property transactions concluded last year, and 33% of the total value. The biggest property market is the North West with the highest overall number of transactions, while Limpopo swathe highest number of transactions in estates.
Mpumalanga is experiencing a strong market with good house price appreciation. Anthony McGuire, licensee of Seeff Mbombela says that demand is strongest below R2 million and up to R3.5 million, although prestigious estates reach R5 million to R10 million. High rental rates often make buying a more sensible financial option than renting.
Witbank (eMalahleni) and Middelburg are particularly buoyant, driven by robust mining activity and a growing population. AnitaConradie, licensee of Seeff notes that homes under R1.5 million sell quickly, leading to ongoing stock shortages. The influx of mining and energy professionals is adding to the rental demand. Rents range from R5,500 to over R20,000 per month.
Lydenburg, a platinum, and chrome mining hub is active in the R800,000 to R1.6 million range. Anna-Marie de Jager, Seeff Lydenburg licensee, says homes in estates or near schools can sell for over R2.3 million. A top price of R8.1 million was achieved in the last year. Rentals are affordable with rents around R7,200 on average per month.
The Secunda market is resilient below R1.5 million. Billy Fick, licensee of Seeff says the rental market, supported by Sasol contractors, offers attractive investment opportunities with returns of R8,000 to R15,000 per month, depending on whether furnished.
Limpopo stands out with some of the highest price growth nationally over the last decade, including a 7.5% increase in the lastyear. Most transactions fall below R1.5 million. The rental market is robust with 10.9% average rent growth (per PayProp), largely fuelled by a continuous influx of new residents.
Oliver Moorcroft, Seeff Polokwane licensee, states that demand is strongest below R1.5 million and above R3 million. Sales are often hindered by overpriced listings, and too many open mandates, accurate pricing and sole mandates are therefore producing the best results. Prices reached R4.5 million in The Aloes Estate last year, as well as R6 million for commercial sales.
Mokopane is most active between R800,000 and R1.6 million, according to Seeff licensee, Nicole Teich. Robust mining and a growing population are driving rental demand for flats and townhouses in the R5,000 to R8,000 per month range, making these attractive investments.
Tzaneen has also seen good price growth over the last decade. The most active price points are from R1.2 million to R2.5 million. Nicola Strydom, licensee of Seeff Tzaneen says rentals are mostly in the R6,000 to R13,000 range although luxury homes can go to R17,000 per month.
North West province is particularly affordable for buyers and tenants. Despite a 13.5% hike (per PayProp), the average rent isstill around R7,153. Jannie and Joelandi Minnaar, licensees of Seeff Rustenburg say their market is most active below R1.5 to R2 million although luxury homes can reach R4.5 million. Rental rates average from R5,000 to R8,000, making the town very affordable for younger buyers and tenants, although luxury homes can rent for up to R45,000 per month.
Hartbeespoort, a popular commuter and weekend destination, is attracting increased demand from international UK and European buyers, particularly in Pecanwood Golf Estate with its Jack Nicklaus golf course and stunning homes, according to Louise Cawood from Seeff. Demand is mostly in the R2.75m to R4.5m range. Buyers see the estate as offering good value given the amenities, location, and great weather, and are generally purchasing second homes, often with a view to relocating here permanently in future.
Gina Meintjes, ginameintjes@seeff.com or gina.meintjes@mcreatives.co.za