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 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
    • 20 Jun 2018
      The average size of bond granted in SA has grown 7,7% in the past 12 months to R934 000, according to BetterBond, the country’s biggest bond originator.
    • 19 Jun 2018
      In the current market, letting out a property can be a good option as rental demand remains strong, especially in the northern suburbs of Johannesburg. This is according to Chris Renecle, MD of Renprop. However he says that before homeowners let their property out, there are five key points they should make sure are covered before they market the property for rent and sign any lease agreements.
    • 19 Jun 2018
      The Capetonian dream is to live by the ocean with the iconic mountain making an appearance somewhere in the horizon. But, that dream comes with a hefty price tag that many simply cannot afford. But, should you venture some kilometres out of the city centre, entirely new realms of beachside bliss await you …
    • 19 Jun 2018
      Douw Steyn, one of the richest men in the country, recently allowed a rare glimpse into his Fourways Palazzo when it was featured on the SABC lifestyle programme Top Billing - and it is beyond your wildest dreams!
    • 18 Jun 2018
      Many home sellers are motivated to appoint estate agents because they know that the agency will carry the costs of advertising and marketing their property.
    • 18 Jun 2018
      When a property is sold when it has a tenant in occupation, the questions often raised are: “What happens to the tenant if the landlord sells the property?”, and what rights the tenant will have with regards to cancelling the lease or enforcing it, says Sunell Afrika, rentals manager for SAProperty.com.
        
    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