Record-breaking R450 000 rental achieved in Constantia, Western Cape

Dogon Group Properties, the company responsible for the record-breaking sale of a Cape Town home for R290 million in 2016 has done it again, this time in the rentals market with a R220 000 per month lease on a house in Bantry Bay, as well as an astonishing R450 000 per month lease on an estate in Constantia.

These rentals certainly confirm the latest findings by PayProp’s rental index, which states that the Western Cape is now the most expensive province in South Africa to rent a house.

Dogon Group Properties explain that on the Atlantic Seaboard, average monthly rentals range anywhere from between R20 000 to R45 000 for apartments, whilst the average family home achieves rentals of between R50 000 and R80 000 per month. However rentals exceeding R150 000 are not uncommon. This figure has now been topped by this latest rental of R220 000.

In Cape Town’s increasingly popular southern suburbs, areas such as Bishopscourt, Newlands and Constantia, monthly rentals in the region of R100 000 and more have been reached for some luxury homes. “We have not yet had a rental rivaling this latest amount of R450 000 for this area – or in fact any other area in Cape Town and this is indeed a record for us, if not a record in South Africa,” says Dogon.

According to Dogon these high-end rentals are driven somewhat through the weaker rand affording good value to foreigners and ex-pats looking to stay in Cape Town. “The influx of ultra-wealthy business people and families from provinces such as Gauteng has also aided the Cape rental market as these ex-Gauteng residents often rent before buying.”

Dogon go on to advise that the current recessionary conditions have also fueled the rental market for these luxury homes. “Whilst a rental figure of R220 000 may seem extravagant it is only half of what a bond would be on a R44 million rand property – for example – and tenants don’t then incur the additional costs of monthly rates and taxes, maintenance etc. Whilst we weather South Africa’s political upheavals and economic uncertainty many ultra-wealthy would-be buyers are opting to rather rent in the interim until the uncertainty levels out.”

“Short-term rentals are also doing well in Cape Town and we have been contacted by several internationally acclaimed celebrities, as well as ultra-high net worth individuals from Europe and the USA, to secure them suitable rentals for the upcoming season,” concludes Dogon.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us