Strong rental market in Polokwane - Market News, News
Please note that you are using an outdated version of Internet Explorer which is not compatible with some elements of the site. We strongly urge you to update to a newer version for optimal browsing experience.
13 Nov 2012

Strong Rental Market in Polokwane

Property News

Brought to you by Property24

Rental properties in Limpopo's capital city are in strong demand and investors are making a comeback in Polokwane's buy-to-let market.

This three bedroom, two bathroom house has a study and a scullery in the spacious kitchen. It has a swimming pool and is available to rent for R8880 - click here to view.

Sandra van der Merwe of RealNet Polokwane Letting franchise, says the rental market is underpinned by a large pool of consumers who aspire to homeownership but fail to obtain financing due to poor credit records, as well as short-term contractors working in the industrial sector.

She says shortages in the affordable sector with rental units in the R4 000 to R7 000 range are almost unobtainable.

"The cheapest single accommodation to be had is rooms in student communes at monthly rentals of around R2 000 - but in some cases up to three students share a room and pay around R800 per head," she says.

However, tenants in higher income groups are prepared to pay a premium for comfortable homes, and units in upmarket security estates are taken up fast at rentals of between R15 000 and R20 000 a month. Van der Merwe says a new listing of 15 rental properties on the office web page received 200 enquiries within two days.

This townhouse has two bedrooms and one bathroom and is situated in Thornhill and has 24 hour security. It has an open plan kitchen and is available to rent for R5500 - click here to view.

She says businessmen starting up in the city and technicians on short contract on Eskom's power lines, as well as at the mines, prefer rental “packages”. Most don't want to be bothered with hiring staff and require properties that come with a housekeeper and garden and pool services - and they are willing to pay for the convenience.

Achievable rentals now generally equal 75 percent of outstanding bonds, compared to around 60 percent a year ago, Van der Merwe says, and investors are sitting up and taking note. "Investors who left the market shortly after the previous property boom are returning and we are also sourcing rental properties for new investors who view the returns as very worthwhile."

She says local rentals increase by an average of 10 percent a year if tenants renew contracts, and by about 15 percent per year if the property is let to new tenants. Polokwane is also one of the cities where the highest deposits are paid.


Next article

Germiston luxury value for money homes

Germiston's property market offers luxury home buyers with an eye on value, houses with large grounds priced between R1 million and R3 million.

Read more
Germiston luxury value for money homes
Newsletter
Get the latest property news.
Select your options:
Get the latest news
Share
Google Plus
EmailEmail Print Print
Top Articles
Situated in Essenwood in Durban, this elegant architecturally-designed h...

Whether you’re a bundu basher or not, these bushveld beauties will take ...

The centre, due to open in December, will provide convenient shopping to...

Well-situated in Pretoria’s Wapadrand, Bali Village offers buyers 3 bedr...

Situated only 160km from Cape Town, scenic Robertson offers a relaxed ru...

Loading

Your browser is out of date!

It looks like you are using an outdated version of Internet Explorer.

If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.


Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724