Kerry Dimmer
Last year, BetterBond highlighted that Mpumalanga was gaining a fast foothold in the first-time buyer market. Also advancing property sales were properties sold to professionals, returning-home province residents, and retirees attracted to the incredible low veld experiences and views.
This year, BetterBond revealed that the province recorded the highest real-term price increases (above inflation), earning it the Gold Medal for this indicator.
This area is one of the most geographically diverse in the world. It is home to one of South Africa’s largest tourist attractions, the Kruger Park. It has definitely earned its Paradise Country nickname, but why has there seemingly been a spike in property acquisition or interest over the past couple of years?
As indicated by Lightstone in May, could it be that negative sales in 2023 (being those properties sold for less than they were bought) have risen to 6.5 of every 100 sold, the second highest region in the country after Gauteng for this trend? This bitter pill may indeed attract more buyers looking for a bargain, which is somewhat ironic.
Perhaps it’s the ongoing development of new estates, particularly in Mbombela. These, said Dr Andrew Golding, chief executive of Pam Golding Properties last year, are huge pull-cards for those shifting to a lock-up-and-go lifestyle in a region renowned for its sense of community.
Revisiting a Lightstone report from last year shows that the ten biggest towns in the province account for 50% of the 394,000 formally registered properties across 17 municipalities and 64 towns. The average sale price of its properties was recorded at around R900 000, with first-time homes (such as those in estates) having jumped from R955 000 in 2022 to R1,038 million in 2023, says Ooba.
As these figures are up to R200 000 below the government’s transfer duty relief threshold of R1.1 million, it is not surprising that first-time buyers consider settling in Mpumalanga, and this is especially true for those starting families.
Many of those buyers fall in the 18–35-year-old category, which comprised 26.4% of total buyers in the province last year. And as far as semigration is concerned, on average, as many residents leave the area as those who choose to settle there.
Rentals are also in demand
And it’s not just sales. Rental properties are also showing an increase in demand, thus presenting excellent investment opportunities. This is particularly pertinent to estates, which now account for some 40% of the total housing stock in Mbombela. Plots for estate development are also selling quickly, following the success and popularity of, for example, Intaba, Matumi Valley, and Green Valley.
Job seekers are attracted to the area
While it might be that the region has an economy built on the back of coal, and regardless of the negative connotations associated with it being host to 11 of Eskom’s 13 coal-fired power stations, there is at least a levelling given its agri and ago-processing of citrus, beans, and grazing land. Some 21% of SA’s citrus production and a third of its export volumes derive from, largely, Mbombela. Also in support is a very healthy forestry industry and manufacturing sector.
Together, these attract employees from across the country, and the need for them will only intensify with the development of the Nkomazi Special Economic Zone situated along the Maputo Development Corridor.
Regardless of the attractions, be that for leisure, a better way of life, or just economic, Mpumalanga is certainly a case study that epitomises Absa’s Homeowner’s Sentiment Index for Q1 2024 view; that optimism about the country’s property market’s prospects have shifted positively despite prevailing risks.