Rising rent in the richest suburbs in South Africa

Seeff has released a study, using data from Lightstone and Propstats, that shows that Cape Town is now home to nine of the 10 richest suburbs in the country.

The only suburb to make the list not situated in Cape Town is the Johannesburg suburb of Sandhurst. 

Seeff pointed out that the decline in the rankings of the top end Johannesburg and Sandton suburbs become even more pronounced in the R20 million-plus super luxury sector.

“High net-worth buyers are just not investing at the same levels in Sandton and even less in Pretoria East and, he says that the palatial homes there are still struggling to achieve the pace of sales and prices that the Atlantic Seaboard and City Bowl are achieving,” he said.

“Lightstone data shows that for the Joburg/Sandton area, an average of 6-7 residential transactions priced above R20 million were recorded annually between 2010 and 2015. This increased to 10 transactions over the last year. Only three Pretoria East residential transactions appear to have taken place since 2010.”

“Comparatively, 20-50 transactions were recorded for the Cape in the 2010-2014 period, rising to 67 last year; three times more compared to Joburg, Sandton and Pretoria East.”

4 Bedroom House to rent in Camps Bay, Cape Town

The Atlantic Seaboard average selling prices (full title) have more than doubled over the last five years (since 2011/2012), added Lance Cohen, Seeff’s luxury market specialist for the Atlantic Seaboard.

The biggest gains have been in Fresnaye (+167%) and Camps Bay (+128%), the latter attracting the highest number of R20 million-plus sales since.

Where only Clifton topped the R15 million ave price mark, there are now seven (7) Cape suburbs above this range while Clifton now tops R20 million for full title property, says Cohen.

Top end luxury properties and locations can now range to R185 million-R300 million.

Rental prices in Cape Town

In regards to rental prices, Samuel Seeff, chairman Seeff Property Group, said there can be little doubt that, as with the sales sector, the rentals sector of the Cape metro remains the strongest performer in the country.

3 Bedroom Townhouse for rent in De Waterkant, Cape Town

Speaking to the Weekend Argus, he noted that while R80,000 a month seemed high just two years ago, top-end properties in Clifton now command R150,000 to R170,000 a month.

Karyn Farrell, rental admin manager for Seeff Atlantic seaboard and City Bowl, said that the suburbs commanding the highest monthly rents are Clifton, Bantry Bay, Fresnaye and the V&A Waterfront, but Camps Bay is also highly rated.

3 Bedroom Townhouse to rent in Green Point, Cape Town

The highest monthly rents are R80,000 at the Waterfront, R170,000 in Bantry Bay/Fresnaye and R150,000 in Clifton.

While the most popular monthly rental range is between R25,000 and R40,000, rents even in Mouille Point can now reach R100,000 a month. At the V&A Waterfront you can rent an opulent penthouse for R170,000 a month.

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