|Residential rents have risen faster in East London than anywhere else in South Africa says Neville Schaefer, Chairman of national letting company Trafalgar.|
“They’re up more than 25% in two years according to our Trafalgar rental index compared to a national average of 17%,” he adds.
“For instance, the average monthly rental of a typical two bedroom flat in East London is now R2 500. It was particularly low two years ago in December 2003 at R1 580 and R1 100 five years ago.”
But East Londoners are still far better off than anywhere else in South Africa with tenants monthly costs below those in other cities, says Schaefer. A two bedroom flat in the Johannesburg suburbs rents for R4,500, in Pretoria for R3,000 and Cape Town for R4,000.
He says the fast rising rents in East London also indicate surging household incomes as the region benefits from the improving national economy.
“Over the years, salaries and residential rents will slowly converge with all except the most expensive areas in the large cities. This is happening throughout the world. But residential rent is far steadier than residential price growth so it will not be a crisis for tenants. Landlords can look forward to constant real growth in investment incomes as well.”