Property

Property

A project that was due to make a big impact on the property sector unfortunately stalled in 2009 when the provincial government cancelled the developer’s contract for the Kimberley Conference Centre due to unsatisfactory performance. A new contract has been signed and the large project still has the potential to inject considerable value into the Kimberley leisure and conference property market.

The upgrading of the Big Hole site and the associated development of a Protea Hotel nearby has had a decidedly positive impact on the property market in Kimberley. Similarly, the recent expansion of the Diamond Pavilion shopping mall (by some 4 800 square metres to about 35 000 square metres in total) has enhanced the retail offering for Kimberley residents. The mall now has 100 retailers and turnover was up 22% in December 2009 compared to the previous year. Kimberley has several shopping malls, including the Sanlam Centre, the Jones Street Mall and the North Cape Mall.

The best performing sector of the Northern Cape’s property market is the ‘platteland’. According the FNB’s Northern Cape House Price Index, country house prices rose 10.3% year-onyear in the fourth quarter of 2008. The other area to do well was Upington. The airport upgrade and older buyers attracted to the country air have boosted the upper end of the market, while the entry-level market has also grown as economic opportunities expand. By contrast, Kimberley performed poorly in that period, below the provincial year-on-year average of 3.8%.

The Northern Cape has a big platteland but the liveliest part of it with respect to property prices is the Karoo, or southern section of the province. Richmond has grown in popularity quickly. Agents such as Pam Golding now have a presence in the town and were offering a Cape Dutch house in 2009 for R450 000. The prospect of a major astronomical development at Carnarvon could have a big influence on the property market in surrounding towns such as Vosburg, Loxton and Williston.

Golf estates are proving popular in all parts of South Africa and near Kimberley there are two that are reportedly selling well, Camelot and the Magersfontein Memorial Golf Estate. The latter is a 124-hectare development with 250 plots, situated near the site of one of the major battles of the Anglo-Boer War.





© 2009 Northern Cape Business

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