Bay rental market boom
Richards Bay sees big demand for rentals and good buy-to-let opportunities
PROPERTY investors are flocking into Richards Bay to buy properties to rent out as lease prices go through the roof.
According to local estate agents, a growing demand for rentals is surpassing the supply of houses and flats, which puts property owners in a dominant position to make lucrative returns on their investments.
‘It’s the investors’ market at the moment, not the buyers,’ says Dormehl agent Anita Coetzee.
‘Homeowners can demand high prices for rent, because so many people are desperately seeking accommodation and there simply aren’t enough lease opportunities available.
‘In fact, many contractors coming to town are forced to stay in local lodges at a high cost to their employers.
‘We’ve seen many investors coming in from out of town to buy flats in Richards Bay, mostly in the Central Business District area between Arboretum and The Boardwalk Inkwazi Shopping Centre, followed by properties in Meerensee,’ said Coetzee.
Seeff KwaZulu-Natal’s Regional Relationship Manager Dave Jones confirms Richards Bay’s ‘phenomenal growth in rentals’.
‘Seeff Richards Bay sign up on average 30 rentals every month, which exceeds expectations for a mid-sized branch and firmly places Richards Bay as the best performing rental office in KZN,’ said Jones.
Reasons for rise
‘Banks are still sticky when it comes to financing bonds, so most clients are forced to rent while saving up for deposits,’ says Seeff Richards Bay co-owner Elaine Chetty.
Most popular choices are rentals between R5 000 and R9 000 in pet-friendly security complexes.
But Chetty says free-standing houses have been becoming more popular recently with families wanting space.
‘Houses go for about R8 000 per month in some areas, whilst the more affluent areas reach in excess of R15 000 per month.’
Properties at Mzingazi Waterfront achieve rentals of R16 000 a month.’
Chetty predicts that the property market in Richards Bay will perform as it has over the past 18 months, with sales volumes improving slightly.
‘The rental market will remain buoyant as the shortage in stock and tight bank policies will drive more people to rent in the foreseeable future.’
