Upington, the principal town and business district of the Northern Cape Region, has expanded from a largely agricultural and tourist base.

Newly established Realty 1 International Property Group Upington franchise owner Neels Heydenreich, who is already an established presence in the local construction industry, says the expansion of the airport will enhance an already good transport infrastructure and is just one of a number of growth points in the locale. 

From a residential sales perspective, he has identified strongest demand from the extremes of the market: at entry level and at the luxury end.  Driving activity in the R500 000 price range are emergent buyers whose jobs within the government and informal sectors are enabling them to embrace home ownership. 

At the opposite end, in the R1,5 million-plus price range, take-up of luxury homes has strengthened in the last six months, driven largely by older buyers relocating from the major cities.  Many of these purchasers, who tend to have high levels of affordability, are not only looking for new lifestyles but are also bringing new businesses to the area.

The entry level market, which he estimates comprises around 60 percent previously disadvantaged buyers, needs combined earnings of approximately R20 000 a month to be able to afford a three bedroom, single garage house that just a few years ago sold for R100 000.  While high for the area, which has posted property price growth in excess of 30 percent in the last year, it is still substantially lower than the affordability requirements for similar homes in other parts of the country, he says.  

Middle market activity is unexciting at the moment and homes are taking two months or more to sell, he continues.  Putting this price range at R700 000 to R950 000, Heydenreich says however, that there is still movement and that it is coming in part from young families returning to their childhood home after years in the big cities.  Some are bringing with them new enterprises while others are taking over businesses from their parents.

The most sought-after suburbs by these buyers include Blydeville, Middelpos and the newer part of Keidebees, where he says the number of houses has swelled from four or five in the early 2000s to around 150 today. 

Unlike many other growing towns throughout the country, Upington still has reasonable stocks of vacant land, notes Heydenreich.  Currently selling for an average of R150 000 per 900m2 stand, its availability is ensuring continued activity for the local building industry.  A speculative builder himself, he says costs per square metre run to between R2 500 and R3 000, which is low when compared with the country’s central hubs.  By not spending heavily on finishes, however, he is building solid two bedroom houses with double garages for R550 000, which is accommodating entry level affordability. 

There is also visible interest in agricultural property sales, he adds, as people see the potential to tap into Upington’s thriving grape industry which exports an estimated one million tons annually.  It will accordingly be one of the major beneficiaries of the expanded airport, he says, along with the mutton sector which is also showing good growth. 

Those wanting to farm seriously can expect to pay around R75 000 a hectare for an economically viable grape farm and R1 000 per hectare for a viable livestock enterprise.