King William's Town and Bhisho could merge within the next three years, following the sleepy corridor's first construction boom in decades.

The developments that have popped up almost overnight range from two housing projects worth at least R110 million to a new shopping centre and a R100 million upgrade to Bhisho Airport.

New government buildings are also planned for Bhisho, including a new Office of the Premier at R60 million and the R53 million House of Traditional Leaders scheduled for completion in the next three years.

The range of developments, coupled with more people being employed at the Eastern Cape government headquarters, have caused a housing shortage in the King-Bhisho area, says Etienne van Rensburg from ASAP Properties.

"There are far more buyers than properties available in the King-Bhisho area," said Van Rensburg, who markets a 93-unit development called Uitsig near Breidbach. "This is due to government employees and their increasing buying power,"

This week also saw the launch of a massive 330-unit Lakeside development situated in the Balassi Valley, three kilometres from Bhisho. Keren Stone, from ERA Sun, said the development was primarily focused on civil servants working in Bhisho who were battling to find accommodation. "Our aim is to bring families together again," she said. "The housing problem in Bhisho split up families because children had to stay behind as their parents could only find one-bedroomed flats near their work."

Van Rensburg said the influx of government employees had also attracted new businesses.

One example is the upmarket Stone Towers shopping centre, anchored by Pick 'n Pay, that was opened in March.

Chris Hetem, from the King William's Town Housing Association, said future property growth along the King-Bhisho corridor was likely to be driven by office accommodation as opposed to industrial developments.

"The Eastern Cape economy is doing very well," he said. "The political isolation and uncertainty of the past has disappeared and the government is doing well. The international market has discovered South Africa and I think all these factors are hitting the Eastern Cape at the same time," he said.

As a result, the property growth in Bhisho and King William's Town will merge the towns within the next three years, Van Rensburg said.

Daily Dispatch