After a three-year battle with Buffalo City Metro, the Mpengesi Hills 1,000-home development in Gonubie has at last broken ground, much to the relief of Chippa Mpengesi, whose Chipcor Developers company owns the project.
The development has a sales value of R1bn.
“We have struggled to get this approved but we are on our way, and hopefully our other two developments, in Ntabozuko (formerly Berlin) and the West Bank, will soon follow,” Mpengesi said.
“I will be well satisfied if we can get people into the estate, which is one of the reasons that we have an intense focus on all aspects of return on investment.”
Mpengesi Hills, also known as MH, is close to the main entrance to Gonubie.
Prices start at R850,000 for a two-bedroom, one-bathroom property, and go up to R1,180,000 for a four-bedroom home with two bathrooms. Sizes range from 57m² to 112m².
As with all plot-and-plan developments, there are no transfer fees. The 35ha site is relatively flat, has views of the sea, and is close to Gonubie village amenities and schools.
Julius Sekgala is the site development and construction manager. He moved from Pretoria last year, after 20 years with Bearcon Homes, which also develops housing estates.
“The interest has been phenomenal,” he said.
“We already have 131 homes reserved in phase one, and are finalising bulk services which, once approved, will trigger the first sales.
“The first phase of the site work has started and should be ready by August.”
The first show house was a priority and once BCM approved the site services, which he believed was a formality, building would start.
“Due to galloping interest rates, the prices for the two-bedroom homes will probably hold until the interest rates go down to a more acceptable level.
“Our chairman, Chippa Mpengesi, believes the market is crying out for entry-level homes that will entice young people to get into the property market, and this development answers his call.”
Mpengesi said the total development costs, including the price of the land, would probably be about R500m, which would leave a profit of R500m.
Mpengesi is from Ngqamakhwe. He has chaired Chippa Holdings since 2010, a group he founded.
It has a diversified portfolio that includes investments in property, manufacturing, construction, agriculture, energy, plant hire, rentals, mining services and Chipcor Developers.
He is also the chair and owner of the Chippa United football team, also known as the Chilli Boys.
There were a few delays, but this often happens with big developments, and this is big, probably in excess of 1,000 units, quite a few of which will be apartments. It’s an exciting prospect. It’s close to the city but also has a country feel to it
Russell de Jong, owner of Fresh Properties, one of four agencies selling the estate, said the development “took quite a while to get going”.
“There were a few delays, but this often happens with big developments, and this is big, probably in excess of 1,000 units, quite a few of which will be apartments.
“It’s an exciting prospect. It’s close to the city but also has a country feel to it.”
Fresh’s involvement goes back to June last year. De Jong said with the shortage of affordable homes he was surprised that BCM had not fast-tracked the development, which was stalled in 2020 by the municipality while still in the planning permission phase.
In an article in the Dispatch in 2020, the municipality voiced concerns over development in the mainly coastal areas east of the metro.
However, this was before the Kidd’s Beach developments had really taken off, with several mixed-use and mixed-price developments.
It opened an east coast vs west coast property skirmish, with the east’s dominance being challenged for the first time.
To spark the interest of people who have reserved plots, the developers have offered a cash reward of R5,000 for referrals that result in a sale.
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