Bright prospects for Bay property market

A PERILOUS regional economy evidently did not affect Richards Bay’s property growth last year as experts in the industry boast surprisingly positive figures for 2013.

First National Bank’s annual House Price Index last week revealed the national average house price for 2013 rose by 6.8 percent from 2012, but local real estate agents believe Richards Bay’s property prices soared significantly higher than this.

‘Richards Bay’s property prices are definitely on par or even higher – especially the more affordable middle class properties under R1 500 000,’ said Dormehl Property Group Sales Agent Louisa Stoltz.

‘A 10-15% growth would be a more realistic increase.

‘Properties exceeding R2 500 000 did not, however, show a significant increase.’

The growing interest from investors, a booming demand for residential properties and a shortage in rental opportunities point towards an even more action-packed year in the industry.

‘There are great prospects for buyers this year, especially on the entry level home market for R450 000 to R770 000,’ said BMA Group Director Ric Maraj.

‘We are definitely seeing massive investment interest in Richards Bay with our most popular area by far being the greater CBD (Central Business District).

‘A recent development in the CBD that was sold out in two months gave investors a 9.8% yield on their rental returns from day one, with an expected escalation of minimum 8% per year.

‘We should be so lucky to even earn 7.5% on commercial property investments in the present climate!’

A report from Seeff Property Services mirrors the same positive outlook with expectations of achieving double-digit price growth in primary urban areas this year.

‘Based on our turnover that is up by 20% year-on-year and agent feedback, activity has improved significantly with more buyers at show houses, multiple offers and better prices for sellers,’ said the report.

‘This, along with growing stock shortages point to greater normalcy and balance and, while still too early to talk about a major recovery in view of the wider economic landscape, we anticipate a more robust 2014.’