Electricity supply problems boost Tzaneen property prices

Despite improved electricity supply, electricity approvals for new developments are hard to come by in Tzaneen, which is improving the sale prospects of the more affordable existing homes in the town.

So says Joan Bisset, principal of leading local agency Homenet Tzaneen who notes that the demand for existing homes at the market entry level especially has picked up in recent months.

“Most sales in this category are occurring in the former rural areas at prices between R190 000 and R450 000, with some buyers paying cash. Auction properties fetching R250 000 are also popular with these buyers.”

Also proving popular is a proposed development on the outskirts of town named Hamawasha Heights, which has been granted electricity approval. Previously an old plant nursery and fresh produce market, this offers stands measuring 500sqm and 700sqm at prices from R299 000 to R343 000 and represents a good investment opportunity, Bisset says.

Renowned as one of the most scenic towns in Limpopo, Tzaneen enjoys mountain views and is situated just an hour’s drive from the Kruger Park. There are also water-sports facilities aplenty on the nearby Tzaneen, Ebenezer, Magoebaskloof and Dap Naude dams.

Freehold properties in the established suburbs of Arbour Park and Aqua Park are now selling for between R700 000 and R1,2m with typical buyers being contract workers and locals looking to up or downgrade respectively. Sales in this segment have slowed in recent months.

The rental market has also picked up significantly. According to Bisset, whose Homenet branch is the biggest letting agency in the area, rentals are currently running at between R3800pm and R5500pm for a typical three-bedroom home and R3800 for a cluster or townhouse.

Meanwhile tourist activity in the area has increased substantially of late, to the extent that the municipality recently approved 64 new guesthouses. This bodes well for the local economy and property market in future and Bisset believes that once the property cycle turns upwards and the electricity issue is solved, Tzaneen will boom.

Article by: www.homenet.co.za