Rental de­mand up in new growth cen­tres

Business Day - Home Front - - HOMEFRONT -

SMALL AR­EAS For de­vel­op­ers and in­vestors pre­pared to look be­yond the big cities and pop­u­lar tourist spots, there are some ex­cel­lent op­por­tu­ni­ties avail­able in res­i­den­tial rental prop­erty. That’s the word from the RealNet prop­erty group, whose fran­chisees re­port strong de­mand for rental prop­erty in many smaller cen­tres, es­pe­cially where there is new min­ing ac­tiv­ity or in­fra­struc­ture devel­op­ment go­ing on.

In Bronkhorstspruit, for ex­am­ple, rentals have risen on the back of strong de­mand from con­tract work­ers at Eskom’s new Kusile power sta­tion – and could go up even more if plans for an­other power sta­tion in the area are con­firmed. Buy­ers have been in­vestors as well as owner-oc­cu­piers. Town­house prices in Bronkhorstspruit are around R700 000 for a two-bed­room unit, and land­lords can count on get­ting rent of around R4 000 a month.

RealNet CEO Tjaart van der Walt says wher­ever there is new in­dus­trial or in­fras­truc­tural devel­op­ment, there is also lo­cal eco­nomic growth and a per­ma­nent in­crease in rental de­mand.

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