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Mines Boost Lowveld
Property Market - 2006/10/30
New mining development in Mpumulanga is providing a major stimulus for the residential property markets in and around Lydenburg, Burgersfort, Steelpoort and Ohrigstad.
A significant influx of property buyers was recently reported in response to the development of some 15 new mines on a north-easterly axis about 30km outside Lydenburg, which are set to considerably boost platinum production by of Anglo American and the giant Xstrata Group.
Dirk Burger of Homenet Lydenburg says the expanded mining activity together with the ongoing growth of the agricultural and tourist sector are all combining to strongly underpin local property demand across the board.
"We find that everything from freehold property to sectional title developments and to an increasing extent, security villages, is in demand."
The rental market is booming to accommodate the influx of mineworkers and associated employees as well as the broad spread of service industries and manufacturing industries that are following in the wake of the mining growth.
"This in turn has led to expansion of infrastructure in the area with roads, shopping centres, schools and commercial centres all being upgraded."
A new 25 000sq m shopping mall is coming on-stream in 2007/8 just outside Lydenburg and numerous smaller shopping centres are springing up in the various towns in the region. "It has even been suggested that Steelpoort could become larger than Lydenburg which itself is expanding strongly."
On the property front in these centers, most of the action is to be found in the R700k to R800k price bracket but there is also strong demand at the lower end of the market.
"Meanwhile, developers have signalled their arrival on the market with numerous new schemes and investors have sensed the potential returns to be made in the area by purchasing buy-to-let properties.
