The multibillion-rand Ibhubezi Gas project, which was launched recently in Cape Town, has already had a significant and positive impact on the property markets of Langebaan and Saldanha.
The second phase of the project is expected to see the construction of an offshore, natural gas pipeline from Ibhubezi to Saldanha, continuing to Cape Town and then to Mossel Bay and Port Elizabeth.
Adam Moorcraft, chief of the Langebaan office of Realty 1 Elk group, says the magnitude of potential development in and around Langebaan, Vredenburg and Saldanha Bay has resulted in home owners holding on to their properties with expectations that prices will continue to rocket.
"I've heard from international investors that wherever North Sea oil is brought onshore, towns turn into cities almost overnight and this is a view shared by Saldanha Bay homeowners where the gas is going to land," says Moorcraft.
"As a result, property prices are spiralling here and in the neighbouring towns of Langebaan and Vredenburg, with even prices jumping about 50% in the past 18 months.
"Vacant land which was selling between R42000 and R50000 is now selling at about R90000 if you can get land. Entry-level house prices have also shot up, from R350000 to R420000, during this same period." Moorcraft says there is a severe shortage of stock.
Christo Truter, west coast franchisee for real estate group Aida, agrees with Moorcraft. "We suddenly have a big demand for property and a scarceness of sellers."
He says that last month in Langebaan and Saldanha, there were about 10 cases where the franchise was given the sole mandate to sell a property or open land, but when it found a buyer the seller no longer wanted to sell.
It had handed over two of the cases to lawyers because of unethical clients.
He says there is a major shortage of houses in the R180000 to R300000 range in Vredenburg and Saldanha Bay.
The extension to Saldanha Steel and the fact that the company which does the galvanising work for it is building another factory have also led to the demand.
