As many would-be home-owners struggle to obtain mortgages amid current market conditions, the demand for rental properties in the Western Cape's Boland and Overberg regions is growing well.
The busiest and most expensive area within this region is the Franschhoek/Paarl area. "Typically, this area has very few lets available under R5k per month," says Pam Golding Properties' (PGP) B&O Rentals Manager, Nic Campher.
"Most are over R8k per month, going up to a ceiling of R35k per month for a top-end home in De Zalze golf estate."
The Somerset West area also attracts high rentals. There are some apartments available from R3,500 per month, but the majority of homes come in at over R6k per month, and many fetch in excess of R12k per month. The highest price achieved by PGP in this area to date has been R30k per month, for a home in the De Zalze Golf Estate.
"The Helderberg basin in general attracts a lot of demand from young couples and single parents, for whom security is a key concern. There is therefore high demand for homes situated within secure complexes and apartment buildings," Campher says.
"Strand traditionally has the best range of stock on the market, especially in the lower price brackets. We see the highest demand in this area at R2,500 to R3,800 per month. Similarly, Gordon's Bay has many options in the R2,200 to R3,600 per month bracket, with just a few top-end properties fetching upwards of R10k per month."
Further along the coast, areas like Hermanus, Onrus and Gansbaai see more seasonal and holiday activity, and so are more likely to attract shorter-term rentals than the larger towns. In Hermanus, leases are typically under R6k per month, dropping to as low as R1,500 to R3,500 per month in Gansbaai.
Owners of many second and holiday homes are opting to rent out their homes to help alleviate financial strain.
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