Rental demand up in new growth centres
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.