Renico Construction Newsletter- July 2023
Category Newsletters
After 12 months of rising inflation rate figures there was a slight turn in the tide last month with inflation dropping to 6,2% . Although still outside the SA Reserve Banks target of 3-6%, it is definitely a move in the right direction. However, Reserve Bank Governor, Lesetja Kganyago, voiced his concerns and recently said that South Africans should expect higher interest rates for longer. With the Monetary Policy Committee meeting later this month, consumers should brace themselves for yet another interest rate hike of at least twenty-five basis points.
Although at a slower pace, sales at all five of our current projects are still being concluded regularly. It is telling how the higher interest rates have affected the affordable segment of the housing market, with clients opting to rather enter into a rental agreement for the near future.
This past month we were pleasantly surprised by a sudden increase in uptake of available office space at both our Eagle Canyon Office Park and 39B on Kingfisher, with five executive suites secured in less than three weeks. With the devastation caused by Covid to both the sale and rental of office space across the globe, this could be the first positive sign that this market may be on the road to recovery.
I am also happy to report that our Mooi Land residential development within the de Land Estate in Potchefstroom is now also fully sold.
FEATURED RESIDENTIAL PROPERTIES
We are getting closer to completing our show units within the Rainhill residential development situated on Bram Fischer Drive in Linden. Once completed, the show units will be furnished to give prospective clients an idea on layout options and show them innovative interior decorating ideas.
With all two-bedroom homes now sold at our Ndalo estate in Albertsdal, only three-bedroom homes remain available to purchase. Here purchasers still have all the benefits of purchasing a brand-new property directly from the developer without the pitfalls usually associated with an off-plan purchase. Ndalo also has a fully functioning body corporate that represents the forty-three resident families with the daily running of the complex.
With secured sales contracts in place on all 83 Brendavere Estate homes, this development is now officially Sold Out! When we initially broke ground in 2021 during the construction of the first show homes, we still had to wear face masks in public due to Covid regulations. Although most will agree that it feels as if a lifetime has past since then, it has only been a year since the face mask regulations were lifted.
LAUNCHING SHORTLY
We are almost ready to launch our iThemba residential homes in Albertsdal on the East Rand. As we get closer to the sold-out mark at our Ndalo project, iThemba will be launched. Construction to this ninety-six-home simplex development will commence later this year with the occupation date currently planned for later in 2024.
Author: Nico Louw
