Renico Construction Newsletter: February 2025
Category Newsletters
After the ANC's dismal performance at the polls during the last election, forcing them to form a government of national unity and effectively ending their 'free reign' of almost thirty years, one would think they would do a bit of introspection to improve and renew their offering to their dwindling follower base. Unfortunately, they have taken the low road and implemented radical bills that further divide the nation. By doing so, they have caught the attention of the newly inaugurated President of the USA, Donald Trump, who has abruptly ordered the freezing of all aid payments made to South Africa. The adverse effect of this is bound to hit the poorest of South Africa's citizens the most and ironically, they also make up the biggest supporter group of the ANC.
With a third consecutive 25-basis point drop in the repo rate, Reserve Bank Governor Lesetja Kganyago has warned that we might not see another drop when the Monetary Policy Committee meets again in March. The volatility felt in many economies around the globe, coupled with the Rand's continuing instability against the Dollar, makes it difficult to predict where the SA inflation rate will be when the MPC once again meets to deliberate on any changes to our rates. Assertive cuts to the interest rate are needed to stimulate not only the housing market but also to kickstart our economy in its entirety - although any cut has to be welcomed.
Many of the appointed contractors at our iThemba housing project in Albertsdal on the East Rand have started with the required site establishment. Once completed, the installation of water and sewer infrastructure will commence followed by the construction of the remaining ninety-four homes. We are on track to have our show home completed towards the end of this month, but even without the attraction of the show house, our sales team are only a few sales short of reaching our first major marketing target of a twenty-five percent sold. I am confident that we will quickly reach this milestone once the site is transformed into an active construction site.
The first roofs are now in place at our Fernhill residential project in Bryanston, and work on the construction site is progressing in leaps and bounds. Our three appointed plastering contractors are working around the clock to have all homes plastered by the end of next month and by so doing allowing for the next trades to commence with their respective workloads. Our weekly show days have been attracting large numbers of clients with loads of positive feedback, and sales agreements are being concluded at regular intervals. There are only eleven homes still available for purchase at Fernhill before the project is sold out, so do not delay in visiting the site if you are interested in securing a home in this stunning security estate.
The construction of our third phase at the Riverspray Lifestyle Estate in Vanderbijlpark also began a few days ago. Here we plan to have all homes within this phase completed, and hopefully sold, by no later than 1 June. Our marketing team concluded a healthy number of sales in January, and I am positive that this momentum will be carried through in the coming months as more home-buyers enter the market. The Riverspray Lifestyle Estate offers excellent value for money and with the construction of the nearby Vaal Mega City already underway, property prices are set to show growth in the coming years.
We are about to return to Van Der Hoff Park in Potchefstroom where we will start with the construction of the boundary walls and guard houses on both our Elemente and Uitsig Estates. Elemente will comprise of fifty-seven full title cluster stands and Uitsig of forty-three simplex townhouses. We plan to have the Elemente stands ready for transfer by mid-2025 and all Uitsig homes ready for occupation by December of this year.
Author: Nico Louw
