Luxury Rentals Market in Cape Town Booming
Category Press - News
Cape Town's rental market is booming, and not just in the lower price brackets, with higher-end and luxury rentals also experiencing an uptick.
This is according to Alexa Horne, Managing Director of DG Properties, who says that there are several factors driving this demand. Amongst them is the fact that many South Africans are relocating to Cape Town from Gauteng and these people are looking to rent initially while they ascertain which area they want to live in and search for the perfect home to buy.
"These professionals often have large monthly budgets to spend on rental and are looking for family homes in upmarket areas," says Horne. "We also have foreigners moving to Cape Town in pursuit of the lifestyle and value for money, as well as South Africans returning after a stint overseas. They too are driving demand for upper-end property rentals."
"As an example, DG Rentals recently secured a rental of R75 000 on a spectacular Tamboerskloof home. One of our Atlantic Seaboard Agents, JP Fourie, concluded 21 rental deals in November and December alone - one of which was for R85 000 per month for a Camps Bay residence. Patsy Fivelman, our Southern Suburbs Rental agent, concluded 2 deals during the month of January, one at R87 000 in Upper Claremont and another in Constantia at R80 000 per month."
Horne advises that another factor driving demand is that many people are looking to move into bigger properties, often in the suburbs. "Houses that offer extra-bedrooms or studies - space for home offices for professionals now working remotely due to Covid-19 - have been in huge demand. Bigger homes also allow family members to move in together, something which we are seeing a lot of as lockdown takes its toll on many people's livelihoods."
"The current economic conditions have also fuelled the rental market. Rentals being asked are often far lower than the monthly cost of servicing a bond and tenants do not then incur the additional costs of monthly rates and taxes, maintenance etc. There is good value for money in the longer-term rentals market at present, and we see many tenants taking advantage of this and renegotiating their expiring leases."
"Also, whilst we weather the current upheavals and uncertainty many wealthy would-be buyers are opting to rather rent in the interim until the uncertainty levels out."
Odette Maartens, Rentals Manager for DG, says that on the Atlantic Seaboard, average monthly rentals range anywhere from between R20 000 to R45 000 for apartments, whilst the average family home achieves rentals of between R50 000 and R80 000 per month. However, rentals exceeding R150 000 are not uncommon.
"We currently have apartments and houses in areas such as Sea Point, Mouille Point, Higgovale, Green Point, Fresnaye, the Foreshore, De Waterkant, V&A Waterfront, Camps Bay and Clifton available for long term rent with prices ranging from R9 000 up R140 000 per month - for example. And then there is an ultra-luxurious home in Nettleton Road in Clifton available for R180 000 per night - of course more for the short term lets," says Maartens.
"In Cape Town's increasingly popular Southern Suburbs, areas such as Bishopscourt, Newlands and Constantia, monthly rentals are in the region of R100 000 and more have been reached for some luxury homes."
DG currently have apartments and homes available to rent in the area ranging up to R290 000 per month for a 10-bedroom house in Constantia Upper, with studio apartments starting from R9000 per month.
"Rentals started to pick up in 2020 the moment that lockdown restrictions allowed people to move - from around June 2020 onwards. We have been inundated with literally hundreds of enquiries monthly and so far this year has continued to be busy," concludes Maartens.
Author: PR - Cape Town Etc - 28 January 2021
