Richards Bay house prices stand firm
The average level of house prices was in July almost 12% lower in real terms, after the effect of consumer price inflation, compared with the peak in August 2007.
HOME owners in Richards Bay can heave a happy sigh of relief as the town’s property values continue to remain stable (some even increasing) in the face of SA’s house price downward spiral.
ABSA’s house price indices released on Monday indicated the average month-on-month price growth has slowed down to below 0.2% – its lowest level since early 2012.
The average level of house prices was in July almost 12% lower in real terms, after the effect of consumer price inflation, compared with the peak in August 2007.
‘Average house price growth has been on a continued downward trend since late last year, driven by increasingly challenging economic conditions as reflected by economic and employment growth, inflation and interest rate trends,’ said ABSA in its report.
‘It has also been affected by developments regarding the state of household finances, consumer credit risk profiles and consumer confidence.’
But despite these pressures, local property prices did not drop.
‘I find property price growth in Richards Bay is stable, in fact in Arboretum there has been strong demand which resulted in a slight increase in property prices in the suburb,’ said Dormehl Property Group Sales Agent, Louisa Stoltz.
‘The small increase in the interest rate is definitely having an effect on buyers’ confidence.
‘The lower and middle sectors of the market are set to benefit from the recent reduction in transfer duties. T his is encouraging more first-time buyers to enter the market.
‘This has resulted in an increase in sales in the sectional title market, which has been more affordable.’
Property pointers
Stoltz said Richards Bay’s rental market is still the most active in the area.
‘As far as rental properties are concerned, investors are reaping the rewards as there is a huge demand for rentals at the moment.
‘My advice to potential buyers is that when considering buying a property, review your finances and consider your situation if the interest rate should change.
‘A property is a medium- to long-term commitment, so it is important to look for a property that can grow with your developing needs.
‘If possible, buyers should shop for a home that meets their current requirements, but also has the potential to adjust to a changing household.’
