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Investors eye Midrand as major projects boost rental demand

Buy-to-let property investors are currently piling into Midrand– still the fastest growing urban node in the country - to capitalise on a steep increase in the demand for rental flats and townhouses by students, working singles and young couples.
 
That’s the word from Zakes Myeza, co-owner of the local Chas Everitt International franchise, who says the demand for rental accommodation in the area is currently way in excess of demand, especially in the R4500 to R6500 a month range, and that rentals are set to keep rising because there is very little new residential development taking place.


House to rent in Midstream Estate
 
“At the lower end of this range are students looking for accommodation while they attend the Midrand Graduate Institute and various other tertiary education institutions located here and in the surrounding areas, and at the top are young people working at Vodaworld or at one of the many other high-tech companies that have their headquarters in this area.
 
“The latter are mostly in their 20s or early 30s and for various reasons are not prepared to commit to buying a home, even if they can afford it. On the other hand they like living here because it is very convenient for work and at the same time a vibrant area with plenty of shopping malls, entertainment venues and sporting facilities right on the doorstep.”
 
And now tenant numbers are being further swelled, he says, by young working people employed at companies in Pretoria, Sandton and even Johannesburg, which are easily accessible via the Gautrain network, and by people employed on one of the enormous commercial construction projects now under way in Midrand, such as the R3,5bn Mall of Africa.
 
“This makes the area a hot-spot for buy-to-let investors, provided they can find suitable properties at the right price, and fortunately Chas Everitt has access through the banks’ distressed sale programmes to many properties that represent very good value for such buyers.
 
“For example, we have two-bedroom flats available in Erand close to Vodaworld for between R460 000 and R499 000. These can attract rentals of between R5000 and R6500 a month.”
 
Meanwhile, Myeza says, his agency has also seen increased demand this year from homebuyers in the R750 000 to R1,5m range, especially in secure complexes in areas such as Kyalami Hills and Halfway Gardens, where the value of sales has more than doubled in the past 12 months.


House to rent in Kyalami Estates
 
“Obviously the highest demand for homes in these areas comes from management level staff at local companies, but there is no doubt that interest in this sector of the market has also been boosted lately by Midrand’s outstanding location between the two major economic hubs of Johannesburg and Pretoria amid increasing consumer resistance to long commutes, traffic congestion and the proposed tolls on the N1.
 
“From here it is just a 15-minute drive or Gautrain ride to the CBD of Sandton, and only a slightly longer one – against the main flow of traffic – to Pretoria. For business travellers, Midrand also offers easy access to the OR Tambo International and Lanseria airports as well as Grand Central.
 
“And for families, there are excellent schools in the area such as the Midrand, Jubilate, Christ Church, Carlswald and Summerhill primary schools and the Midrand, Glen Austin and Beaulieu high schools, with more due to be built.”
 
Myeza, who bought the Midrand Chas Everitt International franchise in 2008 with his wife Phiwe, says the business has flourished since then, despite the fact that the property market generally has been through a recession. “In the face of all the economic upheaval, Midrand has steadily continued to expand, as have our sales, and now we are anticipating even better years as the market kicks into high gear.”


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  • Adriaan Grove - posted 02 Oct 2013 07:26 AM                                    

    Midrand is definitely a hotspot on MyProperty with lots of people looking for rentals in the area.
    Buy-to-let investors can't go wrong.

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