Capital projects set Emalahleni market alight

Posted On Wednesday, 25 May 2011 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

As the “coal capital” of South Africa, the city of Emalahleni in Mpumalanga is the new "power house" of the region.

Brian Dames“The massive effort to boost SA’s power supply is centred here,” says Hein Strydom, owner of the local Aida franchise, “and the city, formerly named Witbank, together with the neighbouring town of Middelburg, is now responsible for 43% of the province’s GDP.
 
“There are already five power stations going full-tilt here, another (Kusile) under construction and a seventh being planned by Anglo Coal. And while there are already some 45 coal mines in operation, at least four new ones are set to open to supply the new power stations.”
 
In addition, he says, the strategic location of the city at the junction of the N4 and N12 highways in the Maputo Corridor has attracted huge steel and chrome manufacturing concerns, and to facilitate exports, Transnet is now spending millions of rands to upgrade the railway links to Maputo harbour.
 
“As the economic nerve centre of the province, Emalahleni already supports amenities such as a regional shopping centre, three hospitals, a Tshwane University of Technology campus, the Eskom regional office, and the headquarters of many mining companies, and now because of all the new capital projects, even more people are pouring into the city in search of both rental and permanent accommodation.”
 
Consequently, unlike most other parts of SA, Emalahleni has experienced a surge in property sales over the past year, with demand strongest at the lower end of the market, where house prices range from R470 000 to R700 000, says Strydom.
 
“And we are now also experiencing improved demand for mid-range housing in the R900 000 to R1,5m bracket.”
 
The demand for light industrial, agricultural and commercial properties has also been high in the light of the increased local demand for goods and services of all types, he says, but sales in these sectors have been hampered by the banks’ reluctance to lend to self-employed individuals.
 
“Meanwhile, the rental market is booming, with many buy-to-let investors now able to achieve a rental income to bond expenditure ratio of up to 95%, provided they buy the right property.”

Last modified on Monday, 19 May 2014 08:55

Most Popular

Exemplar REITail Acquires Katale Square Shopping Centre

Sep 23, 2019
 JASON MCCORMICK
Real estate investment trust, Exemplar REITail, has acquired Katale Square shopping…

Mall of Africa Celebrates Launch of New Generation Pick n Pay Store

Sep 23, 2019
 MOA PNP  1
Today Mall of Africa welcomed one of South Africa's biggest grocery retailers to the…

Grit Real Estate financial results for the year-ended 30 June 2019

Sep 30, 2019
 BRONWNY CORBETT
London Stock Exchange listed Grit, the only listed Africa-focused income distribution…

4AX listed Heartwood Properties reveals positive financial results

Sep 23, 2019
 JOHN WHALL
Commercial property development company, Heartwood Properties , has revealed a 30%…

Reserve Bank keeps repo rate unchanged

Sep 23, 2019
 LESETJA KGANYAGO
 South African Reserve Bank Governor Lesetja Kganyago on Thursday said this is in line…

Please publish modules in offcanvas position.