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Monday Nov 13, 2017

Cape Town rental demand strong ahead of summer

Demand for rental property at prime locations in Cape Town, such as the Atlantic Seaboard, has led to some visitors spending about R30 000 a day.

Pam Golding Properties is seeing a trend in which visitors are paying premium prices to enjoy the pristine beaches and cosmopolitan lifestyle the city has to offer. The company said homes along the Atlantic Seaboard were fetching daily rentals of about R30 000 and rental activity was also accelerating across all regions, with longer leases in high demand.

Dexter Leite, Pam Golding Properties rental manager for the Cape region, said most of these tenants were repeat holiday visitors. He said that with demand about to peak for summer, Pam Golding Properties had already let a beachfront bungalow in Clifton for R23 000 a day and a large villa in Bakoven for R30 000 a day.

Leite cited the FNB Property Barometer, which said the Atlantic Seaboard and the City Bowl recorded the highest house-price inflation rate in the Western Cape, at 29.9% and 21.1% respectively.

"Its not surprising that the rental markets in these two areas are following this demand trend. Renting is ideal for those relocating to Cape Town for a period of time as it provides for greater flexibility than if one were to buy. With many blue-chip companies moving into the Waterfront and City Bowl, there is also a strong market for corporate and individual rentals."

Leite said new sectional-title developments were also in high demand, especially in the City Bowl where the live-work-play lifestyle has gained traction with flat rentals between R13 000 and R18 000 were sought after particularly by young professionals. He said there were also requests for three-bedroom homes in the City Bowl with monthly rentals between R25 000 and R45 000.

"Property price inflation in the Cape Metro remains well above the national average of 10.9% during the first half of the year. For many who want to call Cape Town home, renting is a more affordable and flexible option until they have decided where to invest.

"There are also high-end rentals such as a three-bedroom Mouille Point apartment with stunning sea views, available to rent for R150 000 a month. The average long-term rental for a three- or four-bedroom home in Camps Bay R60 000 a month."

Leite said the southern suburbs, where there is stiff competition for access to schools, had also shown a marked increase in rental activity over the past year. Rentals include a three-bedroom Bishopscourt home for R163 800 a month and a four-bedroom home in Constantia for R100 000 a month.

A Constantia home, available for R120 000 a month, includes a well- established garden, a private swimming pool and a Jacuzzi, as well as a games room that opens up to its own putting green.

Leite said the upper end of the market, particularly in Constantia, Bishopscourt and the Steenberg Golf Estate in Tokai, had attracted interest.

He said the northern suburbs offered affordable rental options for families, young professionals and students where properties with three bedrooms or more let for between R16 000 and R26 000 a month, while one to two-bedroom flats let for about R6 000 a month.

"The Tyger Waterfront, with its excellent security and close proximity to the Willowbridge Mall and Tygervalley Centre, is particularly popular with young professionals. Lifestyle estates are in high demand, especially with families relocating from other provinces.

"They often move to the northern suburbs because of the bilingual schools in the area. Monthly rentals at these estates can range from R30 000 to R50 000," said Leite.

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