Lifestyle precinct development eases northern suburbs rental crunch | Everything Property

Lifestyle precinct development eases northern suburbs rental crunch

Klein de Koning kitchen Groot Phesantekraal Estate second development

The second development in Groot Phesantekraal Estate, Klein de Koning, comprises 48 contemporary and distinctively designed apartments.

A spike in demand for rental properties in Cape Town’s northern suburbs in the past two years has precipitated notable stock shortages in the area, but this pressure is being eased by new development, notably in Groot Phesantekraal Estate where the second development Klein de Koning is due to be launched this month.


Cape Town’s northern suburbs have been experiencing a significant squeeze in the rental market as demand for rental properties in areas like Durbanville, Bellville, and Brackenfell has skyrocketed in recent years, leading to a notable shortage of available stock and rising rental prices.

According to Rowan Alexander, Managing Director of the Alexander Swart Property Group, the shortage of available rental stock has led to a very competitive market where properties in good condition and realistically priced are often snapped up within days of being listed – if not sooner.

“Agents are reporting multiple applications for each property, often on the day of listing, with potential tenants even offering above the asking rental price to secure a desirable property. This spike in demand has also precipitated new development, especially in the Durbanville area where there are still available tracts of land.

Alexander notes that the strength and growth of the rental market in the region is clearly evidenced by the success they’ve seen in a very short time at the recently completed Wheatfields Estate development in the suburb of Groot Phesantekraal Estate, where landlords saw rental returns of 8.2% in year one and 9.1% the second year.

“Additionally, property owners at the estate are also enjoying capital appreciation of around 8.5% per annum which is a respectable return in any market and, with properties accessibly priced between R3 million and R4m, it’s an affordable and lucrative option for most investors.

“And, as 40% of the buyers in the first phase are investment purchasers, they will already be confident that they have invested in the right property and area.”

Comprises 152 own title homes

Klein de Koning Duplex

Klein de Koning Duplex

Wheatfields Estate, the first residential project at Groot Phesantekraal Estate, was launched for sale off plan by Rabie and Trinity at the end of 2021, and comprises 152 own title homes, of which around 110 are already occupied.

“There are only 12 unsold homes and a few still under construction but these are due to be completed within eight months. The next development in the precinct, Klein de Koning, is a pioneering project for the area and is due to be launched for sale off plan this month.

Klein de Koning consists of 48 contemporary and distinctively designed apartments set within a secure gated enclave with lush, landscaped gardens, communal entertainment areas and a swimming pool. With 12 simplex units and 36 duplex apartments, it offers buyers a sophisticated, low maintenance lifestyle which will be highly sought-after in the rental market.”

Situated in the scenic Durbanville wine region, Groot Phesantekraal is poised to become the newest residential hot spot in the city with the ongoing development integrating commercial, retail and educational components into one privately managed precinct.

Amenities will include the recently opened award-winning Curro Durbanville High School, the planned Stadio tertiary education campus which is scheduled for completion at the end of 2025 and the Groot Phesantekraal Regional Shopping Centre which is currently under construction and scheduled to open mid-2025.

An additional drawcard is the precinct’s proximity to the Winelands and the regions lifestyle amenities such as wine estates, running trails and cycling routes as well as the Cape Winelands Airport which has expansion plans in the pipeline to transform it from a modest airfield to an influential commercial and aviation centre.

Alexander attributes the boom in the rental sector to several compelling factors:

Migration from other provinces

Cape Town has seen a significant influx of residents from other parts of South Africa with data from Statistics South Africa showing that the Western Cape has experienced the highest net migration of any province and continues to do so.

Affordability compared to other popular areas

While still offering excellent amenities and quality of life, the northern suburbs generally provide more affordable housing options compared to other popular areas, such as the southern suburbs and the Atlantic Seaboard. This attracts both young professionals and families looking for value for money.

Proximity to business hubs

With the growth of business parks and office developments in areas like Tyger Valley and Century City as well as in the Winelands, the northern suburbs have become increasingly attractive for those seeking to live close to work.

Quality of life

The northern suburbs are known for their good schools, shopping centres, and outdoor/green spaces, making them ideal for families and individuals seeking a balanced lifestyle.

“Real estate investment remains one of the most stable investments, especially during challenging economic times when other investment options tend to be more volatile, and this is especially true for the Western Cape,” says Alexander.

“According to the latest TPN Rental Monitor report, the Cape continues to outperform other provinces in terms of rental payment performance, with 86.7% of tenants in good standing as of Q4 2023 (TPN Credit Bureau, 2024).

“This high percentage of reliable tenants has made the region increasingly attractive to investors and landlords, which has been especially notable in Cape Town’s northern suburbs during the past two years.”

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