Property economists Rode & Associates’ flat rental data for first quarter 2011 show that the average rental for bachelor flats in Johannesburg’s inner city has surged to an average R2 800/month.
Demand for rental accommodation in the inner city of Johannesburg has risen so sharply over the past two years that tenants are now paying the same for a bachelor flat in Hillbrow as in leafy Sandton.
Property economists Rode & Associates’ flat rental data for first quarter 2011 show that the average rental for bachelor flats in Johannesburg’s inner city (including Hillbrow, Berea, Parktown, Joubert Park and Braamfontein) has surged to an average R2 800/month. That’s up 38% from R2 025/month two years ago.
Rentals for bachelor units in some of Johannesburg’s northern and north-western suburbs including the likes of Parkhurst, Linden and Emmarentia actually dropped over the past two years while rentals in Randburg and surrounds were up less than 6% over the same time.
Interestingly, Rode’s data shows that bachelor flats in the northern and far northern areas of Sandton including Bryanston, Fourways, Lonehill and Douglasdale currently fetch an average R2 800/month, placing it on a par with Jozi’s inner city. However, it’s still more expensive to rent bigger flats in Sandton. For instance, two bedroom flats in Sandton go for an average R5 250/month compared to R3 200/month for the CBD.
It appears that the surge in demand for smaller rental units in the inner city has been partly driven by increased uptake among students. Simon Rubin, marketing director of Aengus Property Management (APM), a developer involved in inner city office-to-flat conversions, says student population growth in Johannesburg has far outstripped the supply of available rooms.
So much so that on average only around 20% of all students at Wits and other tertiary institutions in Johannesburg find accommodation on-campus. Rubin says while more and more off-campus rental accommodation providers are cropping up, students are becoming more discerning. “While they demand value for money for accommodation, they are no longer prepared to accept low-quality accommodation with limited amenities.”
APM has since 2005 developed a portfolio of over 2 000 student beds spread across various buildings in Johannesburg’s inner city. Rubin says APM has no vacancies in its inner city rental portfolio, with an extensive waiting list for all its buildings. APM’s rental units are priced between R1 650 and R2 500 per student per month. - Joan Muller
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