Renico Construction Newsletter- April 2025
Category Newsletters
Will the GNU hold strong through its toughest test to date when the standing committee on finance votes on the fiscal framework today and if passed, tables it to parliament for approval? This after reports of the ANC re-engaging with members of the coalition in the days leading up to the deadline to negotiate the terms in lieu of their support to get the budget passed. I believe that a 0,5% increase in VAT is inevitable but it will be interesting to see what the ruling party had to compromise on to have this budget passed.
In my previous newsletter I made mention of the delays caused at all our projects by the persistent rainfall. Although we are already well into autumn, more rain is predicted for the coming weeks. Not only did we receive above average rainfall this season, but most provinces also received major disruptive weather events amounting to billions of Rands in damage. Weather patterns are certainly shifting, with extreme conditions often leading to large scale destruction. As a property developer we are already taking this growing phenomenon into account when planning and executing new projects and by doing so, hopefully limiting the damage that could possibly be caused by future adverse weather conditions.
As predicted the Reserve Bank's Monetary Policy Committee decided to hold the repo rate at 7,50%, which equates to a prime interest rate of 11%. With the uncertainty in today's markets, not only locally but also globally, it is difficult to predict what will happen with the next MPC meeting at the end of May. Another reduction in the prime lending rate is what the economy needs but this will only happen when our inflation stays firm in the 3- 6% threshold set by the SARB. Let us keep our fingers crossed!
Not only is our iThemba site in Albertsdal a hive of activity with almost one hundred cubic meters of concrete being poured every day, but our plans for the construction of the Melonkhule Estate gate house were also approved by council, enabling the construction of the estate entrance to now begin.
The team appointed to deal with the construction of the next phases at the Riverspray Lifestyle Estate in Vanderbijlpark used the few sun-drenched days to prepare surface beds and to excavate soil for the placement of the raft foundations. With our second phase now fully sold, it will be another four months before the next phase of completed homes will be ready for occupancy. Homes are still priced at an unbelievable R835,000, so it will not be long before the next phases are also sold. Contact Nicolene on 083 561 1731 for an exclusive viewing of these stunning houses.
With most of the 'wet trades' done at our Fernhill residential project in Bryanston, the teams attending to the finishing of these beautiful family homes have three months to complete all outstanding work and by doing so, having them ready for occupation by July the 1st.
The appointed civil contractor at our Elemente and Uitsig residential sites was busy this past month! All fifty-seven full title Elemente stands are now cleared and pegged for prospective clients to walk over and view each of these available stands overlooking the picturesque Potchefstroom Dam. There are still a limited number of stands available within the estate. Contact Beatrice on 071 674 5673 for more information on Potchefstroom's' newest luxury estate.
Author: Nico Louw
