Richards Bay favours both buyers and sellers

The residential property market in Richards Bay has shown steady growth since 2013 despite a volatile national economy, defined by increasing inflation rates, high unemployment and lacklustre GDP growth, which according to latest IMF figures, has slid to 0.1 percent. Property values in the industrial town have soared above the national average, leading to an increase in developer, investor and buyers interest.

Increasing Demand; Sellers Capitalise 

One of the main reasons for Richards Bay’s property value growth is an increase in demand for homes, coupled with a supply that is remaining stagnant. This has resulted in residential property values growing between 10 - 15 percent, a growth that is soaring above the national average which is currently witnessing a devaluation in property prices.

Due to rising demand that is overtaking supply, the town’s residential market is currently favouring sellers, as they can fetch a higher price for their properties. One of the most effective ways for sellers to capitalise on the market is through buy-to-let investments, as the current climate is not only pushing home selling prices up, but rental rates as well.  

A home in Richard’s Bay currently on the market from Lew Geffen Sotheby’s International Realty, ideal as a buy-to-let investment, is located in the Arboretum. This family sized property comprises of four bedrooms, two bathrooms, a thatched roof entertainment area, and a pool and braai area.

Another property available on the market, suited as a buy-to-let investment, and most specifically as a holiday-letting home, is a three-bedroom apartment in the lakeside suburb of Meer-en-See. The property comes with double automated garages and private garden, and is a breezy walking distance from the beach, shops and restaurants.  

Buyers Cash in on Affordability 

However, this does not mean that buyers lose out. Richard’s Bay is one of the most affordable housing locations in South Africa, and comprises of a significant portion of homes in the affordable middle-income bracket, between R600 000 - R1.7 million - making it ideal for entry level buyers. These buyers also benefit from an elimination of transfer duties for all property acquired for less than R750 000 - a threshold that was previously stuck at R600 000 for a number of years. 

The area is diverse in property types, with townhouses, duplexes and freestanding homes being the most popular. Suburbs of highest interest among buyers, and an area sellers can look to capitalise on, is the town’s CBD and the Arboretum. Buyers have been flocking here as investor confidence is at an all-time high, with a number of commercial, residential and retail developments underway. Surrounding areas that are also growing in popularity, include Meerensee, Birdswood and Veldenvlei. 

From the suburb of Birdswood, Lew Geffen Sotheby’s International Realty brings to the market an affordable two-bedroom sectional-title home, fitted with a premium granite kitchen and an open-plan lounge, fully secured by an automated gate and alarm system. It is priced on the market for only R815 000. 

Richards Bay is one of the few locations in South Africa that is able to develop rapidly, whilst still maintaining an affordable housing sector. With the advancement of its commercial culture, this is due to witness a greater influx of people moving into the area, thus further influencing residential demands. For those looking to buy or sell property in Richards Bay, our professional agents at Lew Geffen Sotheby’s International Realty will guide you through the entire process to ensure that your buying or selling experience is worthwhile.