Bay property demand outstrips supply

GROWING demand, but shrinking available stock in Richards Bay’s residential property market is pushing house prices sky high, leaving up-and-coming buyers scratching to find good value for money.

According to local property gurus, the Bay has experienced a shortage of properties for sale and for rent for a few years now, but since October, the market has picked up noticeably.

‘Townhouses, simplexes, duplexes and freestanding houses mainly in the price range between R600 000 to R1.7-million are most in demand among both local purchasers and those relocating here from other regions,’ said Pam Golding’s Area Principal, Phil Hammill.

‘We find the suburbs of Meerensee, Birdswood, Arboretum and Veldenvlei the most sought after owing to their accessibility to the Central Business District and places of work, status and relatively low crime.’

However, some interest has shifted from Meerensee to other neighbourhoods where it is easier to afford homes that have already had facelifts done.

‘As today’s buyers are placing a high priority on obtaining value for money, a renovated property in Arboretum, for example, is considered more attractive than a standard house in Meerensee,’ said Hammill.

Dormehl Property Group Agent Anita Coetzee confirmed that Richards Bay’s central residential zones have taken the spotlight.

‘We have found that inquiries have been more for the CBD and Arboretum areas,’ said Coetzee.

‘Due to the shortage, owners are asking very high rental prices. A few years ago, you could pay for a freestanding house what you now have to pay for a flat or simplex.’

Property prices are expected to go up even further with new attractive developments such as the Alkantstrand Precinct on the cards.

‘These developments will increase the demand for rentals and sales, which will be good for the property market, but unfortunately we’ll still have a shortage of properties for the rental market.’