The Tzaneen property market has seen a drastic expansion in recent years, particularly on the residential side.
With its abundance of subtropical and indigenous plants, Tzaneen is not only fondly referred to as a subtropical paradise and known for being the cleanest town in Limpopo, but the property market here is also very vibrant and offers many opportunities to prospective investors.
In an article by Private Property a local principal of a property agency indicated that the property market in Tzaneen has seen a drastic expansion in recent years.
Vacant land in Tzaneen has become extremely scarce and because of this reason developments have been slower – in turn creating a gap in stock availability for buyers.
Due to the low stock levels in Tzaneen, property prices have increased, but this fact aside the market still remains a buyer’s market like in much of the rest of the country at the moment.
Buyers in Tzaneen negotiate prices and properties that have been on the market for long periods of time are often eventually sold for less than market value. Sellers are therefore advised to always price their property correctly from the onset.
Property types with highest demand
Property types with the highest demand in Tzaneen include two bedroom townhouses and affordable three bedroom homes for families. Most of the recent buyers in Tzaneen are young professionals and younger couples who would rather invest in property than to rent.
People in Tzaneen don’t only choose to buy property because of the long term benefits associated with property ownership but also because the Tzaneen rental market is extremely expensive due to stock shortages.
The principal indicated that her agency operates in various areas with different price ranges starting from around R400 000 in the rural areas and more affordable areas like Florapark, R4 million in upmarket residential areas like Aquapark, Premierpark and Arbopark and around R35 million in the agricultural areas.
Security estates are very popular due to the security features and the fact that they are lock-up and go and low maintenance properties.
In estates such as Riverside, Heritage Village, Tzangeni and Letaba River Estate with the most popular estate being Golden Acres situated close to the Tzaneen Dam prices start at around R1.9 million.
Another new townhouse development called Villa Royale is also in the process of completion. These townhouses consist of two bedroom units priced at R950 000 and three bedroom units at R 1 850 000.
Investment in townhouses in Tzaneen could be a lucrative endeavour due to the shortage of rental stock. Two bedroom townhouses are rented out for between R5 000 and R9 000 depending on the area, while three bedroom homes can fetch rentals of between R10 000 and R 15 000 per month. There is however a severe shortage in this property type and they rarely become available.
The best time to buy property in Tzaneen is now as property values increase with between 11% and 20% per annum due to the extraordinary demand.
Story: RC Myburgh