Unabating demand for rental homes in Cape Town

After reporting a busier-than-expected winter season for residential property sales in Cape Town, Pam Golding Properties (PGP) now confirms that the residential rentals market was also unseasonably busy this year (2013). 

PGP’s Rentals Manager for the Cape Metro region, Dexter Leite, says the Southern Suburbs, City Bowl and Atlantic Seaboard were particularly in demand, and business remained buoyant from May to September. During this five month period, PGP’s specialised rentals division concluded in excess of 500 lease transactions in the Cape Metro region.

This five-bedroomed home in Bishopscourt is available for rental through Pam Golding Properties at R75 000 per month. The exceptional home has spacious reception areas which flow to a shady stoep with mountain views. The property also includes a granny flat, staff accommodation and garaging for four vehicles.

Leite says demand is high across a number of prices ranges and in a number of different areas, resulting in stock shortages in several suburbs. “Family homes in the sought-after Southern Suburbs and City Bowl remain consistently popular,” he says, “thanks to their central location and access to top-quality schooling. The City Bowl and Atlantic Seaboard lifestyle is also highly sought-after, and clients are prepared to pay top rates to obtain apartments in upmarket secure buildings with unfettered views. There is also notably high demand for family homes in secure estates in Tokai and Westlake, which offer a secure lifestyle as well as easy access to the Reddam and International schools.”

At the very top end of the rental market, several leases have been concluded with international clients working on contract in South Africa, and with local businesspeople relocating to the Cape, who prefer to rent initially while they assess where to buy. PGP has also received numerous top-end enquiries for corporate/executive rentals.

Among the top-end leases concluded by PGP during this period (May to September 2013) were:

·         R78 750 per month for a house in Bantry Bay
·         R58 300 and R40 000 per month respectively for two apartments at the V&A Waterfront
·         R55 650 per month for a house in Fresnaye
·         R55 000 and R40 000 per month respectively for two homes in Stonehurst Estate, Tokai
·         R54 000 per month for a house in Llandudno
·         R45 000 and R40 000 per month respectively for two houses in Camps Bay
·         R45 000 per month for a penthouse apartment in central Cape Town
·         R38 000 per month for a house in Kenilworth
·         R36 200 per month for a house in Higgovale
·         R35 000 per month each for four houses in Claremont, Kenilworth, Bishopscourt and Tokai

Another source of significant demand for rental properties emanates from the student market, and Leite confirms his team has already concluded a number of student rental deals for 2014, mainly in the Southern Suburbs and City Bowl. “Most of the properties appropriate for students already have tenants secured for the year, although there are a few still available,” he says. “We usually see enquiries in this market continue well into February, as this is when most institutions begin their academic year.”

Leite adds that into the final quarter of the year (2013), his team has seen an upturn in enquiries from would-be landlords wishing to rent out their properties – mainly for long-term rental income, but a few seeking short-term holiday lets. “This is a positive sign given the high demand for rental properties, but has not been sufficient to alleviate stock shortages,” he concludes.

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