Inland property success, Mbombela estates achieve prices of R5m to R10m

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Lightstone data also shows that despite a slower market, property buyers invested up to R5m to R10m for luxury homes in the sought-after estates in the city.

Mbombela in the heart of the Lowveld, is just under four hours from the Gauteng metro areas, and is the gateway to the Kruger National Park, one of the most visited game reserves in the world. The Mbombela Stadium is a landmark in the city which boasts a busy economic and residential sector.

The province of Mpumalanga is home to South Africa’s Coal Bel which produces more than 80% of the country’s coal, along with various other minerals. There are also a cluster of 12 power stations, three of which are the biggest in the southern hemisphere. Other economic drivers include agriculture, tourism, and the Maputo Corridor.

McGuire says the great Lowveld weather makes it an attractive place in which to live and invest. The bushveld surroundings are also a big attraction. There is a steady influx of people moving to the city for economic reasons. Most people move here from elsewhere in the same province or from Gauteng. Buyers comprise a mix of first-time buyers, professionals, as well as retirees.

The most popular suburbs for first-time buyers include West Acres, Ilanga, and Stonehenge, while Sonheuwel, West Acres and Steiltes are ideal for family buyers.

Luxury market confidence

After the 2021/2 market boom where transaction volumes average 1,550 per annum, Lightstone data shows that sales volumes have declined to around 1,104 transactions for the 12-month period to the end of September to the total value of just over R1,687bn. Prices have also declined by 4.28% as the market has tightened.

Nonetheless, the data shows that buyers still have confidence and invested up to R10m in luxury homes over the last 12-months. These were predominantly in estates such as Shandon Estate where prices reached R7.35m to just under R10m, and in Elawini Lifestyle Estate which reached R6.5m, Matumi Golf Estate reaching R5.25m, and Bataleur Estate reaching R5.1m.

The data shows that some 40% of all transactions were above R1.5m. According to Seeff’s agents, the most active price band is between R1.5m to R3.5m. Only about 7% of all sales were above R3m, mostly freehold and estate houses. Estates have grown enormously, and now make up 43% of all property stock.

Eco and wildlife estates are popular, says McGuire. These include The Rest Nature Reserve, an eco-estate with upmarket homes priced from R2.5m, Ntulo Wildlife Estate priced from R1.8m, and Shandon Wildlife Estate, priced from R3m.

Freehold houses range from around R1.7m to R3m, and sectional titles from R600,000 to R1.5m. There is also plenty of vacant land for investment, or to build a dream house, ranging on average from R300,000 to R1.2m.

Wildlife and commercial farms are also popular, and range from around R3m to R12m depending on the farm and infrastructure. Homes in wildlife estates range from around R1.5m to around R4m depending on the estate.

Although active, the rental market is characterised by high rents with high growth rates which is problematic for tenants, according to Seeff’s agents. According to the PayProp Rental Index, the average rent for Mpumalanga stands at around R8,484 per month. And growth has declined to around 2.4% in the second quarter of 2024.

The market and excellent price growth achieved during the boom years, show that property is a good investment in Mbombela.