Stable rental prices keep Richards Bay rental market buoyant
Stable rental prices are keeping the Richards Bay rental market buoyant according to property company Seeff whose Richards Bay branch that celebrated their 10 anniversary. earlier this year.
During that time the company has gone from strength to strength – and members of the Seeff Richards Bay team now sell the most units and also lease the most units of all the Seeff branches across KwaZulu-Natal.
Elaine Chetty, who has been running the Seeff Richards Bay office with her husband Silven said, "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".
"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 purchasing a property. Our tenants consist of a mixed demographic group, with almost 70% of them being people of colour.," added Chetty.
Statistically Seeff has seen a great demand for sectional titles in the area, and 75 percent of the properties that we rent 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 Meerensee and Arboretum continue to be sought after, as they are well-priced and opportunely located.
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 R4500.00 to R40 000.00 per month, depending on the tenants’ needs.
A flatlet away from the Central Business District will attract a rental of +- R4500 a month, and two- to three-bedroom sectional title units fetch monthly rentals of R6000 to R10 000. A two- to three-bedroom freestanding property will fetch R7000- R12 000 a month, depending on location and property offerings.
The more upmarket town houses and free-standing 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.