27 Feb 2013
The demand for rental properties in the Cape Town metropolitan region continues unabated, with an unflagging appetite for rental homes across all areas of the city and all price ranges.
This is according to Pam Golding Properties' (PGP) specialised Cape Metro rental division which reports a busy peak summer season, concluding almost 500 lease agreements and renewals from October 2012 to January 2013. These included properties in the City Bowl, Atlantic Seaboard, Southern Suburbs and South Peninsula.
PGP’s rentals manager for the Cape Metro region, Dexter Leite, says demand for rental properties is far outstripping supply in a number of areas. He says this is particularly so in the market for three or four bedroom family homes in areas such as the Southern Suburbs, City Bowl and Camps Bay.
“This is also the case in the market for two or three bedroom apartments in City Bowl and Sea Point, where the price bracket from R6 000 to R8 000 per month is particularly sought-after. There is a notable shortage of stock in these specific markets and price categories at present.”
Leite notes that across all areas and price ranges, security remains a key priority for tenants. As a result, homes in secure gated estates are in high demand and short supply.
Another market experiencing peak demand and stock shortages is that for student accommodation. Leite says this market is always particularly busy at this time of year, as tertiary institutions begin their new academic year.
He says they have been busy in the student accommodation market, letting a number of one and two bedroom apartments in the Southern Suburbs at rentals of between R5 000 and R12 000 per month, while in the City Bowl, leases are being concluded at around R4 000 to R5 000 per month.
There is a huge shortage of student accommodation, he says, particularly close to the University of Cape Town or located on the route of its Jammie Shuttle bus, which transports students to campus.
Continuing the trend noted in 2012, the top-end of the rental market is seeing high activity levels and notable prices being achieved. Among PGP’s recent top-end rentals are an apartment at the Water Club in Granger Bay for R80 000 per month, two homes in Bantry Bay for R75 000 and R49 000 per month respectively and two houses in Bishopscourt for R70 000 per month each.
Also on the market are two houses in Bishopscourt at R55 000 and R50 000 per month, two houses in Camps Bay and Constantia for R45 000 per month each, a home in Higgovale for R36 720 per month and a house in Sea Point for R35 833 per month.
PGP also concluded a holiday let of a prestigious home in Bishopscourt for the peak festive season, with a total value of just under R1 million. This equates to around R37 000 per day for a period of just under one month.
According to Liete, these deals reflect the sustained demand for top-end properties in the rental market and their clients, at this level, are typically corporate clients - either MDs, CEOs or directors, or senior professionals appointed from abroad.
He says the leases are often as long as 12 to 24 months in duration, catering for those working on fixed-term contracts, while shorter-term rental leases are often used as a stepping stone for executives who are relocating to the Cape and first want to rent while they investigate where they intend to buy.
“Negotiating leases at this level can be a delicate and intricate process, with high expectations from both owner and tenant. Our team of specialised and experienced rental agents utilise PGP’s well-established support infrastructure and national referral network to ensure that those expectations are met to the satisfaction of all parties.”
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