Short-term rental agents across the Cape are expecting a busy summer season.
According to Seeff’ Shortstay teams in Cape Town and Hermanus, the season usually starts from around September/October and lasts to April when the last foreign visitors leave, but bookings are already in full swing.
Airbnb has really opened Cape Town to the world. Everybody wants to come to the city over the summer,” says Jason Da Costa from Seeff Atlantic Seaboard. Airbnb has also boosted the short-term rental sector in recent years, and although rates are under pressure due to the dip in visitors this year, agents are looking forward to a busy summer.
He says despite the lower visitor numbers during the early part of the year, bear in mind, Cape Town is still the busiest tourist city on the continent. The Airports Company reported that Cape Town International Airport arrivals totalled 10.7 million (domestic and international) in 2017, 6% more than in 2016. December 2017 arrivals were 11.5% higher compared to December 2016.
Da Costa says aside from locals, the SA summer coincides with the cold northern hemisphere winter, and offers a fabulous escape for foreigners, and Seeff expects a good deal of visitors from the UK, Germany, Netherlands, USA and other countries. Visitors from Asian countries are also increasing.
The Atlantic Seaboard tops the list for these kind of rentals, especially Clifton and Camps Bay. The fabulous thing about Cape Town, is that there is something for everyone, and Da Costa says you can enjoy a laidback trip and cater for yourself from as little as R2 500 a night on the Atlantic Seaboard, or you can live like a king in Clifton at R250 000 a night.
Camps Bay and Clifton top the list of most sought-after areas, but there is demand across the city, including in Hout Bay and Llandudno, the Southern Suburbs and as far as Hermanus.
Da Costa says the Atlantic Seaboard tends to attract the big spenders looking for a 5-star home-away-from-home experience. While the high season rates for apartments range from R2 500 to R10 000 a night, luxury villas go for R20 000 to R30 000 a night and the most opulent homes upwards of R50 000 to R250 000 a night.
According to Da Costa, clients tend to want a great experience, especially at the top end of the market, and Seeff Shortstay service includes everything from the listing and marketing the property to bookings, checking in of guests, ensuring everything is in order to 24/7 Concierge Service assistance.
“We also provide access to tourist products such as yacht and helicopter tours, wine tasting tours, personal trainers or access to local sports clubs and gyms and more,” says Da Costa.
“We can also offer private air charters, which can allow the ultra-wealthy to skip airport queues.”
He says the Cape offers a holiday that can compete with top destinations such as the French Riviera and Ibiza. There are always a few celebrities to spot at summer at hotspots such as Café Caprice, Grande Africa Café and Beach, the Shimmy Beach Club or at the Waterfront. Aside from the scenic location, you can enjoy a Mediterranean climate, sandy white beaches, many with Blue-Flag status, world-class surfing beaches, aquatic to land-based pursuits, nature and adventure, the wine farms, and now also Africa’s first modern art museum, the Zeitz MOCAA.
Hout Bay, Llandudno and even the Southern Suburbs are in demand. “Hout Bay and Llandudno are also coastal hotspots over the summer, but we have year-round demand here and in the Southern Suburbs,” says Janine van Heerden, Seeff’s Rental Manager for the areas.
Van Heerden says views are always a top choice, or as close to the beach as possible. Most holiday and short-let visitors require Wi-Fi, and they often request a swimming pool in the summer months. These three areas also have easy access to the Constantia Wine Valley, another big drawcard.
The village is popular for its fabulous scenery, famous harbour and beautiful coastal drives, Chapman’s Peak on the one side leading to Noordhoek, and on the Atlantic Seaboard side Victoria Road which runs all the way past Camps Bay, Clifton and on to Bantry Bay.
Van Heerden says it is usually families, couples or groups of friends who book in the self-catering sector of the market. It is also a hotspot for foreigners from the UK, Germany, America and Australia.
"We assist and guide property owners to ensure their property is furnished and equipped with the necessary amenities, linen, kitchen, etc. to ensure that their property is a top choice for visitors,” she says.
Peak season rates are around R2 400 a night for a flat and for a house or villa R5 000 to R13 500. Southern Suburbs rates range from R1 800 to R2 500 for a flat, and R3 300 to R28 000 for a house or villa. Low season rates are about 30% to 40% lower, depending on the time of year. Rates depend on the location and what is on offer.
Hermanus is also popular for its close proximity to Cape Town. “The town benefits from its close proximity to Cape Town and the international airport. That means that up to 40% of our visitors are foreigners, mostly from the UK and USA,” says Cisca De Vries from Seeff Hermanus.
A popular weekend getaway for people from the Cape and inland provinces and over the summer season, the town is packed with visitors. As the whale capital of the country, it is also busy over the schools holidays, even during winter when you can spot the magnificent Southern Right Whales in Walker Bay. Festivals are another big attraction which brings more visitors to the town.
"While our beautiful beaches and water-based adventures are a big attraction, we also have the beautiful Hemel en Aarde Wine Valley, fabulous waterfront cafés and now also a regional mall, the Whale Coast Mall,” says De Vries.
She says high season rates are around R1 650 a night for a flat and R5 500 a night for a house/villa. The closer to the beach you are, the more expensive, but it depends on the area and property. Low season rates are about 30% to 50% cheaper.
The busier the tourist season, the better the rates that visitors will pay. Da Costa advises property owners not to be too ambitious with their expectations.
“We are still expecting some pressure on rates. Rather work with skilled agents because it is in nobody’s interest to have empty properties. Our aim is always to get the best possible rates for our clients.”
Overall, tourism is a major economic growth sector identified by President Ramaphosa. According to a report by World Travel & Tourism Council (WTTC) published in March, it expects the sector to contribute R424.5 billion to the SA economy this year, about 9% of the GDP (inclusive of direct and indirect contributions) and supports about 1.5 million jobs in SA, 9.5% of total employment. It is a major economic sector for the Cape in terms of GDP contribution to the province and nationally.
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