select
|

Rental demand spikes on the Atlantic Seaboard and Cape Town city centre

Rental demand in the city bowl and surrounds has spiked by 30 percent since the start of summer says Seeff Atlantic Seaboard and City managing director, Ian Slot.

Short-term rental demand had rocketed ahead of the Mining and Design Indaba and the opening of Parliament. By the first week of this year, we had already concluded 42 new leases with many more in the final stages. We have also just concluded the highest rental in on the Atlantic Seaboard at R170,000 per month for a luxurious, seven-bedroomed villa in Geneva Drive, Camps Bay.

Slot attributes the buoyancy to constrained economic and mortgage lending conditions and expects the latest petrol price hikes to drive even more tenants towards the city and surrounds. It is also not just the middle income that is renting now, but upper income earners as well, continues Slot. Of the 457 rentals that we concluded last year, 54,7 percent was in the price range of between R7,000 and R12,000 per month while 29 percent ranged between R12,000 and R20,000 and 16,3 percent above R20,000 per month.

Long-term rentals make up the bulk of our business and we are facing significant stock shortages across all price bands and areas, adds agent Vivien Adler. In addition to the usual spike in new entrants early in the year, many who had had hoped to buy this year are rather renewing their leases. Consequently, stock that would normally have come back into the market is now not available.

In the CBD, one bedroomed units are especially in demand says agent, Jules Arnott. These are sought by students, young professionals and both young and middle-aged married couples. Many are opting to rent at a monthly cost of about one third of home ownership if you factor in bond repayments, maintenance and rates and taxes. Rentals range from around R6,000 per month for an older unfurnished apartment and R6,500 if renovated while furnished units go for about 35 percent more.

Houses and apartments that offer two or more bedrooms at monthly rentals of between R7,500 and R14,000 per month are especially in demand in the surrounding suburbs adds agent, Elzunia Singer.

In the suburbs of the Atlantic Seaboard, location and views remains an important consideration with tenants that range from corporates to professionals and families advises Adler. Sea-facing apartments in Sea-Point range from around R12,000 to R15,000 per month for a two-bedroomed unit with a communal pool while units on the marina at the V&A Waterfront start at around R25,000 per month. Townhouse and house rentals in Clifton, Bantry Bay, Fresnaye and Camps Bay start at around R25,000 per month.

Some of the highest monthly rentals achieved in the city during the past year include R35,000 for a De Waterkant apartment in December, R26,000 for a Tamboerskloof house in mid-2011 and R27,000 for a Three Anchor Bay apartment. Units in Greenpoint and Sea Point achieved a top rate of R20,000 and R34,500 respectively. A Camps Bay house was let out at R80,000 in a deal concluded late last year while a Clifton house fetched R50,000 in a deal concluded in mid-2011. December rentals included R80,000 for a V&A Waterfront unit and R34,000 and R35,000 per month for houses in Bantry Bay and Fresnaye.

Current annual escalation rates range between 5 and 8 per cent, but rental rates are under pressure and landlords need to be aware that while there is demand out there, they need to price in line with what the market is prepared to pay concludes Adler.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Feb 2018
      Owning a home is a milestone that most South Africans aspire to. Becoming a homeowner is a step towards growing personal wealth and owning an asset that appreciates in value over time, provided of course that the correct principles are applied during the buying stage of the process, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 20 Feb 2018
      The suburb of Greenstone in Johannesburg east came to be over the last two decades. “In the beginning, it was literally just a hill with not so much as a shopping centre,” says Michael Levy, Property Consultant at Jawitz Properties Bedfordview. Today it has plenty shopping facilities and is fully built, boasting high-density, upmarket housing and residential estates, though still has a few pockets poised for commercial development.
    • 20 Feb 2018
      A major shift in the ageing paradigm has precipitated an equally dramatic transformation in the retirement sector, with modern accommodation options worlds away from the conventional model.
    • 19 Feb 2018
      Possibly one of the biggest sources of contention between landlords and tenants surrounds the rental deposit. “Most tenants rely on getting their rental deposits back when moving, so that they can use it to pay a deposit on their new home. Having it withheld or even having large amounts deducted can lead to a lot of distress,” explains Bruce Swain, CEO of Leapfrog Property Group.
    • 19 Feb 2018
      Situated approximately halfway between Johannesburg and Pretoria, Midrand was established in 1981 and forms part of the City of Johannesburg Metropolitan Municipality. It has become one of the major business hubs in the country with major pharmaceutical, textile, telecommunication and motoring giants situated within its boundaries.
    • 19 Feb 2018
      The PayProp Rental Index Annual Review of 2017 shows that the rental market suffered from much volatility during the year. It kicked off with rental growth spiking in January with weighted year-on-year growth (YoY) growth peaking at 8.3% before dropping to 6.34% in July, dipping down to less than 5% in November and then experiencing a slight uptick at 5.75% in December.
    • 19 Feb 2018
      While most homes in cluster complexes, estates and other gated communities come with at least one garage or carport, residents would often like additional permanent parking or storage areas for things like trailers, bikes, boats and caravans.
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK