tzaneen property moratorium
26 October 2007
Some of the “oomph” has been taken out of the Tzaneen property market by recent changes in the property climate — but already the foundations are being laid for the next big surge. So says Joan Bisset of local agency Homenet Tzaneen, who notes that the lower end of the market remains very active and will provide the springboard for renewed growth.
“The local economy remains robust. Tourism is a lynchpin and in that context the resurrection of the Sapekoe Tea Estates is on the cards. The estates have been the subject of a land claim which has been settled and reports are that their restoration is planned. “The natural beauty of the area also attracts increasing numbers of visitors ensuring demand for B&B’s while other drivers of the property market are the influx of more government employees, general business investment such as the new SA Breweries distribution warehouse and the growth of service industries such as banks and retailers.”
Agricultural production is also important: Tzaneen and the surrounding area produce citrus, avocados, pecan nuts and other products for local and export markets, generating wealth for the area in the process. Bisset adds that the area has also emerged as a haven for retirees with the advent of a new private hospital, and for those who seek to “semigrate” rather than leave the country in pursuit of a better quality of life, bringing with them expertise, capital for small businesses and property buying power.
As for property values, a moratorium on new development has kicked in to allow service capacities to catch up with demand and a shortage of property is bound to follow once existing approved developments have worked their way through the system. “It’s understood the moratorium is for two years, but then there will be a further lead time perhaps of some years before fresh stock starts to come on to the market. The value of existing stock will benefit in the meanwhile, creating opportunities for investors including buy-to-let investors. “It’s notable that the rental market is currently very active, courtesy of the impact of the National Credit Act and interest-rate increases which have made rental a necessity for people who would otherwise have been property buyers.”