South African rental agents say the end of the year is a busy period as tenants and owners contemplate ending, beginning or renewing leases.
This home in the Boschenmeer Golf Estate is available for rental through Pam Golding Properties for R17 000 per month. It has four bedrooms and two bathrooms.
Pam Golding Properties (PGP) in Paarl reports high levels of interest being shown in rental properties, particularly those well positioned for access to top schools.
PGP’s managing director for the Boland and Overberg regions, Annien Borg, says there has been sustained activity in the local rental market influenced by job insecurity, access to mortgage finance and a generally uncertain economic climate.
Many would-be buyers are having to rent for the time being due to lack of access to funding while others who could perhaps buy are choosing not to tie up their available cash in a long-term investment, she says.
PGP’s area manager for Paarl, Surina du Toit, says that there are other factors influencing the current high demand for rental property in the area.
Demand for rentals is mainly from families relocating to Paarl for business or lifestyle reasons, many of whom choose to rent first while they get to know the different suburbs and decide where they ultimately want to buy.
She says ease of access to the N1 highway is important for those business people working in Cape Town or commuting via Cape Town International Airport.
“Another source of demand for shorter-term leases comes from those busy doing renovation work on their own homes, who need to move out for a few months while major structural work takes place.”
Du Toit says the greatest demand at present is in the price range from R6 000 to R10 000 per month resulting in a shortage of stock in this price bracket.
The most sought-after types of properties are family homes with three or more bedrooms and a garden, as well as lock-up-and-go townhouses with two or three bedrooms and excellent security.
Secure lifestyle estates around Paarl, such as Boschenmeer and Val de Vie, are particularly popular.
“These estates offer a superb lifestyle, with lots of freedom to live and play outdoors and are an ideal first step into Paarl for those who are relocating in search of greater freedom from crime.”
An extensive home set on over 6 000 square metres in Upper Constantia offers seven bedrooms, spacious entertainment areas and a pool. Rent is for R75 000 per month.
Entry level prices for rentals in Paarl currently stand at around R2 500 to R3 000 per month for a bachelor flat.
A two bedroom apartment costs between R3 000 to R4 500 per month, while three bedroom flats or townhouses can fetch between R4 500 and R7 000 per month.
A family home with three or four bedrooms can be rented from R6 000 to R14 000 per month depending on size, location and extra features such as a sizeable garden or swimming pool.
At the top end of the market, luxurious homes can be rented for between R14 000 and R17 000 per month in Paarl itself, while luxury homes in the surrounding secure estates will cost between R14 000 and R28 000 per month.
Rentals manager for the Cape region, Dexter Leite says between parents wanting to secure accommodation for student children, business people 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.
“We anticipate that these high levels of activity will continue into January and February next year.”
In 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.
Wener says a number of their long-term leases come from clients who would rather buy, but cannot access the finance to do so in their area of choice.
“This is particularly affecting entry-level buyers and the self-employed.”
But it’s not just lower-priced rental homes which are in demand, even many higher-net-value individuals are also choosing to rent rather than committing their cash to a long-term purchase, she says.
Featuring lovely outdoor and entertainment area complete with home theatre, this four bedroom home is Claremont is priced at R35 000 per month.
Another source of rental interest comes from returning expatriates and business people relocating to the Cape, who often opt to rent for a six- or twelve-month period while they assess the city before buying.
PGP says while some people can afford rentals priced as low as R2 500 per month, some tenants have deeper pockets to pay as much as R60 000 per month for a six bedroom home in Bishopscourt.
These tenants are likely to be corporate or international tenants signing leases from anything between six months and two years.
In the Atlantic Seaboard, tenants fork as much as R50 000 for a three bedroom apartment in Camps Bay on a short lease while in City Bowl, local tenants can pay between R12 000 for a two bedroom cottage in Vredehoek to R34 000 per month for a six bedroom house in Higgovale.
Local tenants sign up leases of one year and more as long as they like the property and are comfortable with the rental charged. – Denise Mhlanga
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