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Table 6.19 describes the trend ofa three bedroom house; its value and number funded by the
Ithala Bank, Ulundi from 2000 to 2007. This study chose the Ithala Bank on the grounds that,
it funds over 90% ofthe properties in the study area. It could be deduced from the table that
the property market was vibrant with about 198 purchases in 2000 in the study area.
Table 6.19: The value and number ofthree-bedroom houses funded by Ithala Bankof
Ulundi from 2000 to 2007
I Number of Houses
Year Property Value (Rands) ,
,
Funded
2000 R85000 ! 198
2001 , R90000 120
2002 RI 10000 i 115
2003 R140000 , 130
2004 RI 70000 145
2005 R240000 i 170
2006 R290000 : 210
2007 R360000 260
The demand dropped in 200 I and 2002 with 120 and 115 house purchases respectively. The
relocation of the KZN provincial capital from Ulundi to Pietermaritzburg created fear in
property market, hence a decrease in demand in the study area at that time. Approximately.
60% of government employees attempted to sell their properties in Ulundi and could not
afford the relatively more expensive houses in the Durban-Pinetown-Pietermaritzburg area.
They then decided to keep their properties in Ulundi. The demand for properties started to
increase from 2003 to date as shown in Table 6.19. Currently. alllthala properties have been
purchased and the Bank is offering housing loans to prospective house owners to construct the
houses themselves (Msibi, Pers. Comm., Thursday, 27-12-2007).
It has emerged that the workers who cannot cope with high rentals in the new provincial
capital, are forced to forgo their jobs in Pietermaritzburg. The relocation of the legislature
also leaves certain existing valuable infrastructure facilities in Ulundi underutilised.
Particularly noteworthy ofsuch abandoned facilities are the Mangosuthu Airport and state-of­
the-art legislative building that remain underused. Lack of skills and expertise (10.9%),
limited infrastructure facilities (13.4%), limited partnerships between all stakeholders (5.8%),
low level of education (9.8%) and distant market (3.6%) are also considered as additional
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