In real estate, negotiation is often seen as a numbers game, a strategic back-and-forth until an acceptable price is reached. However, beneath the spreadsheets and signatures lies a deeper driver: human psychology. Understanding what truly motivates buyers and sellers is often the key to unlocking successful outcomes.
READ: Which property types offer the best returns in 2025?
According to the team at Fine & Country Sub-Saharan Africa (SSA), “Negotiation isn’t simply about price. It’s about perception, emotion and timing. The psychology behind each party’s decision-making is often more influential than the market itself.”
Buy-to-let investors are again returning to the property market, and just in time as there are now huge shortages of rental properties in many areas.
This is according to the Seeff Property Group who says that this is supported by recent housing data from ooba which recently reported that 13.9% of its recent home loan applications were from buy-to-let investors. FNB reported a similar trend and highlighted a particular trend in the affordable price bands which comprise 30% of recent home loans.
While the Western Cape leads the buy-to-let investment boom, there has also been notable growth in the Eastern Cape, and areas in KZN, according to Seeff’s branches. These include Hillcrest and the Upper Highway area, the Midlands, and up the North Coast including Ballito, and as far as Richards Bay.
READ: Gauteng's rental affordability appeals as semigration reverses
The favourable conditions are further bolstered by exciting developments underway in the province including upgrades of the Durban and Richard Bay ports, and several developments including the Club Med one of the most exciting for the North Coast.
The KZN rental market has again become very attractive for landlords as it is now achieving inflation topping rental growth of 4.5% YoY, just behind Gauteng in terms of average rent. Notably, rents have risen faster compared to property prices which still lag at just 2.2% over the last year according to Lightstone data.
Sean Moffat and Joan Ridl, licensees for Seeff Midlands, which includes Pietermaritzburg, Howick and Hilton, say there are plenty of opportunities for investors in the area where they can capitalise on steady monthly income streams. Hilton is particularly popular for its growing local economy, good schools and amenities which attract parents, among others.
Estates, complexes, and freestanding homes in the area is seeing a lot of interest from tenants. Thandeka Prins, rentals administrator for Seeff Midlands adds that there is also demand for small cottage rentals which could be a good opportunity for property owners in Hilton to convert existing garages and outbuildings into cottage units. These can render a good income of around R6,500 per month for a one-bedroomed unit.
Rates in the area vary from around R5,500 to R8,500 per month for small apartments and up to R18,000 for two-bed units. Properties in the estates range up to R25,000 per month with houses reaching R48,000 per month in The Gates Estate, and R25,000-R30,000 in Garlington Estate, based on leases concluded by Seeff.
Pietermaritzburg and the Howick area are more popular for affordable rentals, as well as commercial rentals due to the business opportunities fuelled by exposure to larger publics in these areas.
The R6,500 - R10,000 per month rental range offers particularly good investment opportunities, says Thandeka. The average rental escalation is around 8% depending on location, number of rooms, whether is furnished, as well as other stock on the market in the area.
Elaine Vandayar, licensee for Seeff Richards Bay says there are promising opportunities for rental investors here too, particularly in the sectional title market, and especially in the R700,000 to R1.2 million price range. These offer attractive returns. Sectional title units selling for R1.2 million can achieve monthly rentals of R6,500 - R7,000 at a yield of about 5%.
READ: The rental guide for first-time property investors
The appealing coastal lifestyle and strong local economy is drawing a continued influx of professionals and families seeking secure, well-located housing near major employment hubs. Investors can therefore enjoy steady rental income, and the potential for capital appreciation as the area's development and essential amenities like schools and medical facilities continue to attract new residents.
Rental rates tend to average at around R5,000 - R8,000 for apartments, and R10,000 - R15,000 for townhouses. Freestanding houses range between R13,000 - R18,000. The highest rentals achieved by Seeff over the last year were in the Mzingazi Golf Estate at R44,000 and R59,000, and R30,000 per month in the suburb of Veld en Vlei (Arum Lily Street)
She advised that prospective buy-to-let investors should, however, conduct thorough due diligence on the property selection, location, and potential rental income to ensure a sound, and appreciating asset. Partnering with a rental expert is crucial for tenant vetting, property management, and navigating the regulated rental market's compliance requirements, protecting your investment.
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