Chas Everitt Internationa focus on - Secunda
Sasol extension plans set to boost Secunda rental market
Plans by Sasol to build 900 staff housing units near its Secunda plant will help alleviate the major shortage of rental stock in the area.
Historically a dormitory for the plant, Secunda has enjoyed a symbiotic relationship of sorts with Sasol in that the plant has always provided strong demand for rental property, says Martin van Wyk, MD of the local Chas Everitt International franchise there. This demand is driven largely by the high turnover of the many skilled staff employed on a contractual basis at Sasol.
But demand has outstripped supply in recent times and Sasol has announced that its synthetic fuel production activities will probably increase by as much as 20% in the near future which means employing even more workers.
Expansion of this nature would overwhelm the already saturated rental market, thus Sasol has announced a plan to build 900 units to accommodate their employees.
Van Wyk says that a number of these units will be made available to the public while the rest will remain the property of Sasol.
At present, a typical rental in Secunda consists of a two-bedroom apartment at between R3000 and R4000 a month. Three-bedroom freehold properties meanwhile go for between R5000 and R6000 on average.
The growth will be beneficial in that it will draw additional residents to the area and stabilise the current rental situation by supplementing existing supply. This in turn will put the lid on over-priced rentals and push landlords to upgrade their offering.
Meanwhile, he says, many homeowners in Secunda are currently sitting tight and choosing to renovate rather than sell up and move, thanks to the tightened lending policies introduced by the banks.
Article by: www.chaseveritt.com