R700m Richards Bay residential development

Marketing residential development sites has commenced in a brand new suburb called Royal Creek, comprising a proposed 361ha in extent, which is being developed on a large tract of land just north of the Zululand town of Richards Bay in KwaZulu-Natal.

The residential development sites range in size from approximately 7 300sqm to 22 840sqm, and allow for medium density housing of either 30 or 60 units per hectare.

Of this, 322ha is proposed development land and some 22ha is to remain undeveloped and be retained as natural wetlands.

This is according to Phil Hammill, Pam Golding Properties’ (PGP) area principal in Richards Bay, who says this major R700 million development will incorporate a total of 16 phases of homes, catering for a potential of 960 houses in the first phase alone, as well as a place of worship, crèche, hospital, frail care, high school, two primary schools and a filling station.

The residential development sites range in size from approximately 7 300sqm to 22 840sqm, and allow for medium density housing of either 30 or 60 units per hectare.

Hammill says the first five of these 16 development sites are currently being marketed at prices ranging from R4.59 million to R9.6 million for sites between 8 341sqm and 21 627sqm.

These sites provide opportunities for developers to create residential accommodation to cater for the growing demand in the Richards Bay area, which has become increasingly evident as recovery of the market continues.

At present, Hammill says they are seeing the highest demand for homes to buy in the R4 million to R5 million price range, mainly from those looking to acquire property in the secure and gated Mzingazi golf estate.

There is also a demand for homes to rent, predominantly in the R4 600 to R6 000 per month price bracket, from entry-level and first-time tenants and those looking for locations close to the CBD and workplace.

“As land to develop has become scarce, this new suburb, positioned just north of the modern suburb of Birdswood, provides a logical ‘extension’ to the town, allowing for expansion while still being easily accessible to the centre of Richards Bay and to business nodes in the area.

Hammill says a further factor impacting on the demand for housing is the new mine (for titanium, zircon and other minerals) which is anticipated to open in 2016 in the Mtunzini area.

Already the demand for rentals has increased, with daily enquiries from contractors and others seeking temporary accommodation, he says. Buy-to-let investors are also looking to acquire homes to cater for this demand, which is mainly for three and four bedroom homes in the price range from R8 000 to R12 000 month.

Hammill says while there have been a few residential property sales as a result of the new Mtunzini Fairbreeze mine, the area is experiencing a general increase in demand for homes from investors as well as those seeking the lifestyle, with many choosing to retire here.

“The overall countrywide improvement in the residential property market has caught up with Mtunzini and is impacting positively on market demand.”

Many people are looking to escape the commercialised coastal resorts and prefer the stress-free, conservation oriented lifestyle which Mtunzini offers, he says.

Source: Property 24 

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