What is it that's keeping the rental market in KwaZulu-Natal’s Richards Bay so buoyant?
“Richards Bay has always been a sought-after rental market due to the vast number of industries that are present in and around this coastal town. Although the rental market in this popular coastal area has retained considerable strength, one of the main reasons for the area’s continued resilience is that landlords have been more open to negotiation, which has resulted in stable rental prices,” says Elaine Chetty from Seeff Richards Bay.
She says there is a continuous influx of people coming into the area owing to better work opportunities. These people choose to rent a property before considering a more long-term decision like buying a property. “Our tenants consist of a mixed demographic group, with almost 70% of them being people of colour.”
“Statistically we have seen a great demand for sectional titles in the area and 75% of the properties that we rent out are sectional title properties, with the rest being freehold. Many of the sectional title developments are mixed-use and provide numerous amenities. They are also suitably positioned for an easy commute to work, school and retail facilities. Locations such as Meer En See and Arboretum continue to be sought after as they are well-priced and opportunely located,” says Chetty.
She says it is essential for landlords and investor buyers to do their homework. Knowing what drives supply and demand of rental stock in the area is very important when looking at the bigger picture, as it will allow you to position your property within the market. Rentals in the area vary from R4 500 to R40 000 per month, depending on the tenants’ needs.
A flatlet away from the CBD will attract a rental of around R4 500 a month, and two to three bedroom sectional title units fetch monthly rentals of R6 000 to R10 000. A two to three bedroom freestanding property will fetch R7 000 to R12 000 a month, depending on location and property offerings.
“The more upmarket townhouses and freestanding properties are being let for between R10 000 to R20 000 a month, while properties situated in the Waterfront area achieve rentals of around R20 000 to R40 000 a month, depending on size,” says Elaine.
Print
