While the towns of Kimberley and Upington in the Northern Cape are familiar to most, little is known about the less prominent Postmasburg and Daniëlskuil – even though the property markets here are interesting and offer significant opportunities to investors from time to time.
Leonie Olivier who is a Seeff agent in Postmasburg, says that most people who live here are either employed by the Kolomela Mine or by one of the many other mines that are opened in the area on a regular basis.
“The mining industry here is growing tremendously and it is estimated that around twelve households – consisting of specialist contractors, engineers and the like – move to Postmasburg every year”.
“This naturally creates a big demand for accommodation, but a small town like ours simply does not have this much housing on offer and guest houses are literally overflowing for months on end with contractors who can’t find suitable furnished accommodation.”
Olivier continues that the average rental of a family home in Postmasburg range between R12 000 and R16 000 per month, two bedroom apartments fetch between R6000 and R8500 per month and bachelor apartments are priced between R4500 and R5000 per month.
Not only are these rental figures comparable with rental prices in many of the outlying suburbs of Cape Town, but also with many security estates in the Northern parts of the country.
In an upper-class security estate like Midstream in Centurion for instance, tenants can occasionally find three bedroom homes for R16 000 per month, while neighbouring security estates offer many affluent homes in this price range.
Olivier says a family home in Postmasburg fetching a rental income of R12 000 per month could easily be bought for around R1.6 million, while a home fetching a rental of R16 000 per month is priced around R2.5 million.
“You are looking at gross yields of 9% and 7.6% respectively in the first year and this goes to show that small towns should not be overlooked when it comes to a decent return on investment”.
At the moment Seeff Postmasburg has a variety of spacious family homes priced between R1032 million and R5.4 million available.
Sandy-Ann Alberts, who is a Seeff agent in Daniëlskuil, says that this town is around 70 km from Postmasburg and derives its name from a cone-shaped depression six metres deep in dolomitic limestone which is said to have contained snakes in it and was used as a prison many years ago.
“Danielskuil is a rather quiet little town, but the abundance of water saw to it that man dwelled in the area since prehistoric times – in fact proof of human existence dating back 800 000 years was discovered in a cave known as the ‘Wonder Caves’ just 40km outside of the town”.
“People who reside in Daniëlskuil mainly work for the mines in the area like Finch, Petra and Idwala, but we also get the overflow from Komani in Postmasburg and Kuruman and we have a large farming community”.
Alberts says as in the case of Postmasburg, the rental market in Daniëlskuil is also sky-high alongside a major shortage of rental stock, especially for affordable single quarters and lock up and go units.
In fact, accommodation in Daniëlskuil is so scarce at the moment that the local school’s hostel is currently being rented out to contract workers as single quarters. Of course this means that parents from the farming community have to drive to and from town on a daily basis to collect their children.
We have also been receiving many queries for business rentals lately, but unfortunately we don’t have many suitable buildings available.
Daniëlskuil would however benefit massively from more clothing stores and retailers like a pharmacy and butchery and will thrive in our town as residents would not have to undertake long distances to get to these retailers anymore”.
Alberts continues that a new complex with 16 units called NorthGate is currently being built in Daniëlskuil by CPA Investments and RAJAZE PTY Ltd from Bloemfontein. The units have two bedrooms each, are around 76m2 in size and all have stoeps, built in braais, court yards and underroof parking.
“These units are priced from R640 000 to R698 000 and will easily be able to fetch rentals of between R5500 to R6500 per month. A clubhouse with swimming pool and a laundry in the middle of the complex is also being planned as well as eight more units once the first phase has been completed”.
Alberts concludes that even though Daniëlskuil is small there are definitely lucrative investment opportunities here waiting to be snatched up by astute developers.
“Daniëlskuil boasts many family homes with up to four bedrooms for under the R1 million mark, some commercial opportunities, vacant land, a game and cattle farm of 6066 hectares for R37 million, a beautiful Kalahari guest house that can accommodate up to 40 people and an aquaculture with lucern field for almost R3.3 million amongst others”.
Alberts concludes that vacant stands in the area are in the market from R180 000 to R270 000 and are ideal for new developments.