A need for houses exists in North-West
May 07 2008 01:13:54:863PM  - (SA)  

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In Mafikeng in the North-West province the situation is quite different. “We have so many people wanting to buy homes and there is simply nothing to sell,” says Mandla Sepeng, principal of Realty1 International Property Group’s Mafikeng office.

“There is such a demand for stock that we have been trying to create some,” says Sepeng. “We managed to find stands available in the township, and I met with local developers who have now purchased the stands. The developers have obtained residential rights and are now planning to start building.”

The stands were bought for between R20 000 and R25 000 and can now be resold for double the price.

About 70 stands were purchased and plans are in progress to build houses priced from R210 000 to around R350 000.

“This is the price range that is most in demand,” says Sepeng.

“Once we go over R500 000 affordability becomes more difficult.”

The developers are considering alternative building methods to help keep prices down, such as the gray cement bricks used for RDP housing and the incorporation of steel into the structure.

Construction has not yet started, but Sepeng has a long list of potential buyers and renters.

The marketing of the houses is being aimed at teachers, prison warders, the police and soldiers.

Taking account of the North-West Provincial Government’s announcement that it has budgeted R15 million over the next three years to help municipalities improve specialised capacity building skills to speed up the delivery of houses, the town of Mafikeng looks set to enjoy a healthy market in the affordable property sector in the near future.

Delivering the budget speech in the Provincial Legislature, Finance MEC Maureen Modiselle said that an additional amount of R3,1 billion had been allocated to accelerate the pace of housing delivery in North-West in the medium term, as well as R90 million for infrastructure development.

“We really need all this development,” says Sepeng. Since 1995, much has been done to develop the town, which has tremendous historical significance for the area. The residence of Sol Plaatje is located here, as well as his newspaper office and printing works.”

Orascom Construction Industries (OCI), a leading cement producer and construction contractor active in emerging markets, also announced that it planned to invest US$440 million, or about R3,2 billion, in a new cement plant in the North-West province.

The new plant, which will have a production capacity of 2 million tons per year, is expected to begin production in 2010.

Based in Egypt, OCI has launched a subsidiary, the Mafikeng Cement Company (MCC), which will build and operate the cement plant.

OCI will hold 67,5% of MCC.

Fin24’s Michael Coulson commented that while the plant would not alleviate pressures on the cement industry in the short term as it was scheduled to come into production only in 2010 (too late for the Fifa World Cup) it was nevertheless a real vote of confidence in SA’s economic prospects.

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