18 March 2007

By Thabo Mkhize

The former mining towns of Roodepoort and Krugersdorp are enjoying a boom in commercial, residential and office development.

A new 70000m², multi-million-rand headquarters for WesBank and First National Bank Home Loans is being built in Fairland, next to the N1 highway.

Cellphone giant MTN also headed west from its Sandton headquarters.

Spokesperson Ravin Maharaj said MTN chose 14th Avenue, Roodepoort, for its 100000m² MTN Innovation Centre because of its “suitable location”.

“We decided to invest there because of the available space and proximity to the highway,” he said.

Maharaj said that building the new home of 2500 MTN employees in Roodepoort had helped boost other businesses in the area.

Property economist Francois Viruly said large residential developments to the west of Joburg had contributed to the boom in office and retail development.

“The area is starting to become a very nice home, work and play environment. The home and play parts have been right for some time, but now there is more growth in the work part,” he said.

Viruly said the area attracted middle-class families who wanted to work close to home.

“Companies want to be closer to their employees. They are bringing work next to where their people live,” he said.

“This ensures that people don’t have to spend hours trapped in traffic because their workplace is closer.”

Viruly said the availability of big chunks of land in the area had contributed to the increase in all types of development.

Property broker Pauline Mallabone said the west was experiencing enormous growth.

“I’ve been working in the west for 20 years and it has never experienced growth in industrial development like it is now. Developments used to be on the other side of the concrete highway [Western Bypass] but now they are moving this side.”

Mallabone said that since last year there has been an increase in demand for industrial land in Joburg and the west had previously been “under-utilised”.

“Demand is far exceeding supply. The selling price for a square metre of industrial land was R125 last year, but now the resale value is R520,” she said.

Rentals increased from R16/m² to R28/m² over the same period.

“The west has incredible road infrastructure and there is not much congestion,” she said.

Other large developments that have sprung up in the west in recent years include the Hillfox Power Centre, the 44000m² Key West shopping centre in Krugersdorp, and Roodepoort’s 5000m² Town Square.

Sunday Times