Boosted largely by ongoing expansion of the harbour and a number of major businesses in the area, the residential property market in Richards Bay in KwaZulu-Natal is experiencing strong demand, according to Pam Golding Properties (PGP).
Commenting on growth in Richards Bay, South Africa’s largest port that houses the world’s largest single coal terminal facility, Madelon Venter, manager of PGP’s franchise office in the area, said the exceptional growth currently being seen will impact favourably on the residential property market for years to come, auguring well for further property investment.
“The ongoing expansion of the harbour — with R1-billion allocated to the construction of a dry dock alone — is having a major effect on the business sector, with extremely positive spin-offs for existing and new businesses in the area,” she observed.
“Imports and exports have increased in volume, new opportunities abound for industrial and service-related businesses and generally the growth in the area is phenomenal.”
Large companies undergoing major expansion include Foskor, the fertiliser producer and subsidiary of the Industrial Development Corporation; paper producer Mondi, a subsidiary of Anglo American; and the newly launched Navitrade Coal Distributors. New business projects planned for the area in the near future include India’s Tata Steel and Millennium Power Company.
Growth has resulted not only in an influx of new employees, as well as a constant stream of contractors employed by the likes of Bayside Aluminium and Hillside Aluminium, but is also drawing a large number of Gauteng investors who have perceived the potential in opening new businesses and relocating permanently to the area.
Venter said in the upmarket residential area of Meerensee it is very hard to find homes valued under R600 000. Average prices range from R750 000 to R1-million, with luxury homes priced more than R1,5-million.
She says there is a major need for rental accommodation, highly sought after by contractors and employees flowing in due to all the industrial expansion. As a result, rental prices are increasing, while house prices have already seen growth of about 30% percent over the past 12 months.
A property purchased less than two years ago for R375 000 and with improvements carried out to the value of R100 000 is now valued at R700 000. The price of vacant stands has also increased dramatically. Three stands recently sold by PGP and ranging in size from 1 000 to 1 600 square metres sold for between R220 000 and R330 000.
In nearby Empangeni, where the Eskort development has helped boost property prices and the desirability of the area, homes are also in huge demand.
According to Venter, homes priced at about R275 000 six months ago will currently fetch R400 000.
She added: “Richards Bay is just two hours from Durban, and situated on what is known as the Fish Eagle Coast, offering pristine beaches as well as indigenous coastal forests, rolling hills and private game reserves. The town is also surrounded by wetlands and freshwater lakes. Due to its close proximity to numerous historical sites and attractions, coupled with year-round warm weather, increased tourism is anticipated in the area.” — I-Net Bridge