On-going expansion on Sasol’s projects at Secunda in Mpumulanga have ensured that the residential property market in this town is kept alive and well, catering for some 25,000 employees at this mega complex.
For a live-wire estate agency, says Natasha Herbst, who, with her husband Riaan, is a franchisee for the Rawson Property Group’s Secunda franchise, everything that happens at Secunda, such as the recent restructuring of employees on the Sasol’s Phoenix project, can work to the agents’ advantage.
“The fairly large number of people who have had to sell homes as a result of the latest developments,” says Herbst, “did result in local home sellers adopting a far more realistic attitude to their pricing and this fact led to more homes being sold.”
Asked just how serious this adjustment in price levels had been, Herbst said that typically the owner of a home previously priced at R2,7 million would probably have had to accept a price of R2,4 million or R2,3 million.
Speaking generally, said Herbst, the prices of the 17,000 middle-class homes in Secunda range from R1,2 million to R4 million, the big demand being for those below R2 million. In the sectional title market, which comprises 40% of the total market, the price range is lower.
"The Secunda market has for some three months now not been skewed in favour of the seller," said Herbst, "while this means that our stock levels can be satisfactory, often going above a figure of 50, it also means that buyers can now be far more selective and take more time before making a decision. Buyers today are definitely not signing as quickly as they used to.”
Homes which are selling particularly well, said Herbst, are those in the new 426 unit “The Gayles” development at Evander. Here for the first time in some years, new homes are coming onto the market at prices well below the average for Secunda. Sectional title units at “The Gayles” are priced from R557,000 to R571,000 and freehold homes on their own plots from R612,000 to R790,000. This franchise is sharing the sales mandate with another agency but at the moment is handling the lion share of sales. 130 out of the total of 426 units in the entire scheme have been sold. The development, said Herbst, could run into 2017 and could even be extended beyond that date.
As would be expected in a town which sees much coming and going, especially from contractors who work for limited periods at Sasol, the rental market is excellent. Home owners are able to rent out unfurnished three bedroom homes for R8,000 to R9,000 per month while furnished units can command rentals of R12,000 to R15,000 per month. Those investors buying units in “The Gayles”, added Herbst, will probably be able to achieve rentals almost double the cost of their monthly bond payments.
The Rawson Property Group’s Secunda franchise is now the second most active in the town and they are aiming to take the top spot.
“To be successful, an estate agency in this town must not only be competent and well trained, but also friendly and honest. I believe that our team has this combination of qualities and virtues and, as a result, we have been able to build up a loyal and satisfied client base,” said Herbst.
For further information contact Natasha Herbst on 017 634 5976.
