Renico Construction Newsletter- May 2025

Autumn has made a grand appearance in Gauteng, and the past weekend saw temperatures dropping to single digits for the first time this year. Most predictions now point to a considerable drop in rainfall, which is welcome news to the many South Africans who have been severely impacted by the above-average rainfall experienced this past summer. Dry weather has also resulted in substantial progress being made on all our current construction sites, hopefully making up for the many days lost since November last year.

South Africans will be hopeful for a further cut in the interest rate when the Monetary Policy Committee sits at the end of this month. Our inflation rate dropping to below 3% surely means that we should be expecting at least a 50-basis point cut, but with our overly cautions MPC one never knows. What we do know is that we need a catalyst to kickstart our beleaguered economy which has remained stagnant for far too long.

Although property sales have not recovered to expected levels, there has been a major shift in the residential rental market. Properties are being secured by prospective tenants within a few short days of their listing. It appears that there is a significant shortage of affordable rental properties on offer. This is bound to lead to an upward trend to rental prices, especially in the affordable space.

The installation of civil services to both our Elemente and Uitsig projects in Potchefstroom is progressing well with the construction of the Elemente Estate entrance and guardhouse set to commence this week. Potchefstroom residents and prospective clients from the surrounding area still have an opportunity to secure a stand next to the stunning Potchefstroom Dam. That done, they will then have 24 months to construct their forever home by a contractor of their choice.

Great progress was made with the construction of the third phase homes at the Riverspray Lifestyle Estate in Vanderbijlpark. The first roof structures will be erected this week and the teams attending to the finishing touches will arrive shortly thereafter to commence with the fitment of tiles, kitchens, and cupboards together with the electrical and plumbing fittings.

With less than two months to the occupation date of our Fernhill homes in Bryanston there is quite a bit of work still to be done, but I am confident that the deadline will be achieved. A limited number of homes are still available to purchase. However, I am hopeful that we will be close to being sold out within the coming months.

Construction to the Melonkhule Estate entrance has commenced and this is guaranteed to boost not only our iThemba project but also the following two residential complexes within this brand-new estate which will be launched a little later.

We are extremely excited about the imminent launch our next development in Fourways. Harlow Estate will feature seventy-nine residential units of which fifty-two will be free standing duplex homes in a three or four-bedroom offering. There will also be twenty-seven apartment-style homes in either a one-, two- or three-bedroom configuration.