Demand for residential property in the Highveld town of Balfour has doubled in the past year and growth prospects are excellent.

Herman Botha-Bosch, principal of the local Aida office, reports that rental properties are in high demand thanks to an influx of mineworkers and other staff at the new Great Basin gold mine and Eskom workers at the recommisioned Grootvlei power station.

“The mining company is now recruiting permanent staff and accommodation is at a premium. Three-bedroom furnished town houses in Balfour achieve rentals of up to R8500 a month — a very attractive proposition for investors as such units can be bought at an average price of R560 000.”

Demand in Grootvlei even higher

Demand in Grootvlei, 15 kilometres outside Balfour, is arguably even higher. Modest homes that typically sell at prices of between R380 000 and R480 000 achieve rentals of up to R10 000 a month with tenants sharing rooms, he says.

The demand has also given rise to new residential development. Aida Balfour is currently marketing Villa Sebali, a sectional title development with 160 units. One-bedroom units with a full bathroom are being marketed at R295 000 while 91m² two-bedroom units with two bathrooms cost R460 000. Luxury three-bedroom double storey units are selling at R630 000 in the first phase.

Botha-Bosch says value growth of between 10 and 15 percent per year can comfortably be expected. “Balfour is reinventing itself and opportunities for further expansion in the residential as well as commercial sector abound.

Demand for services set to explode

“The town still functions as the business centre for surrounding maize farmers, but demand for services across the board is set to explode. There is growing demand for more grocery stores, hardware shops, banking services and other services such as vehicle fitment centres,” he says.

Confidence in Balfour’s bright future is further supported by rumours that a second gold mine, a coal mine and an additional power station are in the pipeline.