EDITED BY THE EDITORIAL TEAM :: PHOTOS: SUPPLIED
Despite a cold and wet winter when market activity normally slows, Cape Town’s rental market maintains steady demand from local as well as international tenants.
The Cape Town rental market is seasonal, with higher demand during the summer months due to students and families relocating after the school year, says Arno de Wit, rentals manager at Pam Golding Properties for the Cape Metro.
“However, Cape Town’s desirability as a thriving metropolis has led to consistent demand from both local and foreign tenants. This demand has driven a surge in buy-to-let investment properties, accounting for +9% of all ooba’s mortgage applications in May 2023,” he says.
Highly sought-after properties include three-to five-bedroom houses near good schools, ranging from R35,000 to R70,000 per month. One-to two-bedroom apartments in secure complexes near amenities are also in great demand, typically ranging from R15,000 to R25,000 per month.
However, there is a wide variety of rental properties available in Cape Town. For instance, one-bedroom rentals range from R14,000 to R18,000, two-bedroom rentals from R18,000 to R28,000, and three-bedroom apartments and penthouses from R35,000 to R50,000. Freestanding homes start at around R28,000 for three bedrooms, while four-bedroom homes range from R35,000 to R70,000.
Larger five or six-bedroom houses with factors like size, condition, views, location, and security can go beyond R120,000.
This seven-bedroom house in Constantia Upper is to rent from R20,000 per day
DEMAND FROM ELSEWHERE
“In addition to local inquiries, including those from individuals relocating from other regions who wish to rent before deciding on the best-suited suburb for their needs, we also receive rental requests from potential tenants hailing from various countries such as America, the UK, Germany, France, Italy, and other parts of Europe. These individuals primarily seek homes that offer excellent security and close proximity to schools and local amenities. Moreover, the demand for homes with alternative energy sources during load-shedding continues to grow,” De Wit says.
He further highlights the semigration trend as a significant factor driving the surge of individuals seeking to relocate to Cape Town. This increased demand has led to a rental rate increase of approximately 15% to 20% over the past nine to 12 months.
Anticipating the continuation of this trend for the next 12 months, De Wit attributes the spike in rental demand for properties in sought-after areas to the recent increase in interest rates.
HOW MUCH PRIME RESIDENTIAL SPACE CAN YOU RENT FOR $2,000 A WEEK?
Cape Town is internationally recognised as a premier residential destination, offering value for money compared to other top global cities. According to a recent report by Savills, prime rents in leading cities worldwide have continued to increase. Renters with a budget of $2,000 (±R37,600) per week or $8,000 (±R148,700) per month can now secure a property with an average size of 356m2 in the 25 cities monitored by Savills. This represents a decrease of 26m2 compared to pre-pandemic levels, as rents have risen by 11%.
Savills report says that New York remains the most expensive city for prime renters, with $2,000 a week buying about 10m2 less than in 2019, with Hong Kong, Los Angeles, Tokyo and London the next priciest locations. Rents across these five megacities have increased by 8% on average since 2019. The highest risers were Miami, Dubai and Singapore.
