Mozambique paid US$40.37 million in interest on 'hidden debt' Eurobonds up to March
SA: Property prices in Malalane and Komatipoort show the effect Mozambique has on the area
11:59 CAT | 02 Apr 2018
The recent release of the new property valuation roll have shown how property values have changed, reports South African online edition of The Corridor Gazette. Local experts agree that Mozambique’s troubles have had a big impact on the local economy of Malalane and Komatipoort.
Property owners had until Thursday (March 29) to lodge their objections to the new valuation of their property at the local municipal offices.
Many residents may wonder if property values have changed a lot since the previous valuation.
According to local experts, properties generally have not appreciated in Malalane and Komatipoort.
The main cause of property depreciation, foremost in Malalane and Komatipoort, mostly relates to the imploding of the economy in Mozambique in May 2016, according to Jan Engelbrecht of Fine & Country Lowveld Kruger and law firm Esselens Engelbrechts.
The Mozambican crisis was a huge blow to Nkomazi’s economy. Local organised business invited the editor of Savana, a weekly newspaper in Maputo, to share the actual facts of the Mozambican crisis with businessmen and vendors from Komatipoort, Malalane and Mbombela in September last year.
Fernando Concalves mentioned three factors that impacted on Mozambique: the Frelimo/Renamo clash, the financial crisis and corruption. Concalves explained that the negative outcomes caused the International Monetary Fund to eventually withdraw international funding.
It impacted on the Lowveld and among other effects, resulted in a severe decline in the small business sector. The turnover of some retail outlets dropped more than 40 per cent and services and goods popular among Mozambicans could no longer be afforded.
Soon after, a meeting held in Komatipoort by most of the retailers of Komati Square Shopping Centre confirmed that the year-to-year comparison was, in many cases, down more than 20 per cent.
Lower funds resulted in a reduced demand or means to buy properties and to rent.
According to Jan and Chris Engelbrecht, the house values in Malalane and Komatipoort fell a fair 10 to even 20 per cent average over the past two years. The frequency of spontaneous selling and buying at least halved, and buyers dominated the market.
The good news is that progressively over the past two years most businesses in Malalane and Komatipoort showed less of a loss.
The Komatipoort Prawn Festival, the SA and International Aerobatic Championship and similar events in Nkomazi over the past 18 months have drawn people to the area. The Kruger National Park remains a strong attraction.
Unfortunately, the backbone of the local economy has not restored yet. The stronger rand globally causes the meticais to be weaker and, ironically, this again results in less buying by Mozambicans in South Africa.
It may take longer than two years before property value actually appreciates to previous values (before May 2016), unless an external factor such as the planned special economic zone brings relief.
In view of all this, property values in Komatipoort and Malalane are less than in the past five years.
Marloth Park and Mjejane have unique selling points and are more tourism-driven, thus the Mozambican situation had little impact. Agents of Fine & Country Lowveld Kruger confirm that properties appreciated in value in these areas.
Homeowners should consider the published new property values in the municipal role. When values are incorrect, each owner should ensure the value is well and properly contested and the municipality duly acknowledges receipt of the objection.
The valuation roll and objections forms can be found at municipal offices or via www.nkomazi.gov.za.
Source: Corridor Gazette
Show comments
Also read
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.