Affectionately known as ‘Potch’, the North West town of Potchefstroom looks to be on the up in terms of its property market this year.
“In January, the number of properties listed for sale increased compared to last year firmly making Potch’s current status a buyer’s market,” says Clinton de Witt, Director at Jawitz Properties Potchefstroom, the new franchise joining the brand.
De Witt says Potch is an academic town with in excess of 45 000 university students enrolled last year, making sectional title accommodation a large focus in the area. He says North West University campus, CTI training campus, as well as several other educational institutions are based here, offering an excellent level of education and thus attracting people to the area to study.
“There are plenty of opportunities for buyers to cater to student housing needs, where rental yields are increasing on average on an annual basis. With government prioritising education and subsidies to students, the need for affordable student housing should only increase over time, with many investors jumping at the opportunity in anticipation of the potential growth in the rental market,” says Zack Rossouw, the branch’s other Director.
“There are other areas such as the large commercial hub of the city where there are freehold units, but sectional title properties do make up the lion share of the market.”
Rossouw says one bedroom apartments on average cost around R580 000 to buy, and two bedroom units in the region of R620 000, while one bedroom freehold properties on average come in at around R600 000, two bedroom homes at R800 000, and three bedrooms at R1.2 million.
“But don’t be fooled into thinking there isn’t a luxury market in the area, as homes for sale in security estates or larger freestanding properties can be priced around R8 million to 10 million,” Rossouw says.
“For example, one such property is listed at R7.6 million. It is 9.5ha stand on the riverfront, and includes three private islands as part of the deal, not to mention a luxurious main property with four bedrooms, additional staff quarters, outbuildings and superb entertainment facilities, to name but a few of the features of this incredible home.”
De Witt says the diversity in properties available in Potch mirrors the diversity of the people living in the area.
“From students to young professional and well-established, older people, there is a mixture of residents in Potch,” says De Witt.
“The buyers interested in the area are mixed between investors and developers, some from the surrounding town that buy in Potch and commute, while there are of course parents looking for accommodation for their children attending university.”