Cape rental market still performing well

PGP’s rentals manager for the Cape region, Dexter Leite, says his agents have concluded hundreds of leases in the months from October to December (2011), across a wide range of areas and price brackets.  These have an approximate combined lease value of around R30 million.

“The mid-summer months are always busy ones for the rental market, as clients assess their lifestyle at the end of the year and look ahead to potential changes in the new year,” says Leite.  “Between parents wanting to secure accommodation for student children, businesspeople relocating between cities, and new graduates starting their first jobs, the market typically experiences a surge in demand at this time of year, across the price spectrum.  This year is proving no exception, and the months of October and November 2011 have been extremely busy for us.  We anticipate that these high levels of activity will continue into January and February next year.”

PGP’s MD for the Western Cape metro region, Laurie Wener, says the demand for rentals is being sustained by the ongoing difficulty in accessing mortgage finance in South Africa.  “A number of our long-term leases come from clients who would rather buy, but cannot access the finance to do so in their area of choice,” she says.  “This is particularly affecting entry-level buyers and the self-employed.  But it’s not just lower-priced rental homes which are in demand.  In these times of uncertain international economic conditions and high job insecurity, even many higher-net-value individuals are also choosing to rent for the time being, rather than committing their cash to a long-term purchase.  Another source of rental interest comes from returning expatriates and businesspeople relocating to the Cape, who often opt to rent for a six- or twelve-month period while they assess the city, before buying.  This breathing space allows them to get to know their new daily routine and travel requirements, as well as to interrogate which suburbs would best match their lifestyle needs.”

Among the notable recent new rental deals concluded by PGP since October 2011, are the following:

Southern Suburbs
  • R60 000 a month for a six-bedroomed home in Bishopscourt, leased to a corporate client for two years
  • R55 000 for a six-bedroomed home in Constantia, rented to international clients for six months
  • R35 000 per month (each) for three homes in Constantia, Kenilworth and Bishopscourt, all on a one-year lease
  • R24 840 per month and R22 680 per month for two homes in Newlands, both rented to international clients for a year
  • R14 000 per month (each) for four three-bedroomed apartments in Claremont, all let for a one year period to local clients
  • Ten two-bedroomed apartments in Claremont let for a one-year period at between R8500 and R9000 per month, to a mix of local and international tenants

Atlantic Seaboard
  • R60 000 per month for a three-bedroomed apartment at The Water Club in Granger Bay, leased on a four-month contract to a corporate client
  • R60 000 for a five-bedroomed house in Bantry Bay, let to an international visitor for five months
  • R50 000 per month for a three-bedroomed apartment in Camps Bay, let on a short-term basis to a foreigner
  • R37 100 for a two-bedroomed apartment in Sea Point Upper, rented by a corporate client for a year
  • R35 000 per month for a two-bedroomed apartment at the V&A Marina, leased to a corporate client for six months
  • R35 000 per month for a four-bedroomed house in Fresnaye, rented by local clients for two years
  • R30 000 and R32 250 per month for two three-bedroomed apartments in Mouille Point, both rented to corporate clients on a two-year lease

City Bowl
  • R34 000 per months for a six-bedroomed house in Higgovale, leased to local tenants for two years
  • R 28 000 per month for a five-bedroomed house in Higgovale, let to local tenants for a year
  • R25 500 and R20 000 per month for two three-bedroomed houses in Tamboerskloof, both let to local tenants for three to six months
  • R18 000 for a two-bedroomed apartment in the Central City (Mandela Rhodes Place), let to a local tenant for a year
  • R15 900 for a three-bedroomed house in Gardens, let to a local client for one year
  • R13 500 per month for a two-bedroomed apartments in Gardens, leased by a local tenant for one year
  • R12 000 per month for a two-bedroomed cottage in Vredehoek, let to a local tenant for a year

Leite says PGP’s rental team includes dedicated rental agents who are specialists in the rental field and in the particular areas they operate in, as well as being highly experienced in negotiating and settling leases, with due regard for both tenant and landlord’s requirements.  “This high level of expertise is backed up by sound management, legal knowledge, extensive marketing and extensive website exposure, coupled with a large database of rental properties to match with potential tenants,” he says.  “We are also able to leverage off our national network of sales agents, many of whom refer clients to our rental division while they decide where to buy.  

These resources mean that we are generally able to procure quality, low-risk tenants, and can offer a professional service to landlords, whether they simply require us to find a tenant, or prefer a managed lease where we handle day-to-day issues around their property.

PGP is particularly experienced in negotiating top-end leases and corporate deals, and these currently form a significant part of our business.  We are equipped with the skills and expertise to facilitate these often-challenging lease negotiations.”
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