Rental market stabilises, Western Cape remains priciest for tenants
Category Rentals
While rental rates remain under pressure, the market appears to have stabilised after the challenges experienced by tenants and landlords following the hard lockdown of March to June 2020.
That said, landlords will have to continue being patient and listen to the advice of their rental agents as far as rental rates and escalations are concerned according to Seeff's rental agents.
The PayProp Rental Index for mid-2021 shows overall rental growth of just 0.4%, slightly down from the 0.5% in the first quarter of this year. That said, more positive growth has been evident in May at 0.7% and June at 0.8% after dipping below zero in April 2021.
The Western Cape has also seen growth for the first time after four consecutive quarters of negative year-on-year rental growth and boasts the highest average monthly rental rate at R9 185/month, well above that of the two cheapest provinces being the Eastern Cape at R6 180/month and the North-West at R5 274 per month.
Overall, the rental index shows the national average monthly rental rate now stands at R7 778 per month, marginally up year-on-year.
The current average rental rate still varies between the provinces with the bigger metros being the most expensive. The provinces ranked by lowest to highest are as follows:
1) North-West - average rent is R5,274, up by 0.7%
2) Eastern Cape - average rent is R6,180, up by 2.1%
3) Free State - average rent is R6,213, down by 3.7%
4) Limpopo - average rent is R7,017, up by 0.8%
5) Mpumalanga - average rent is R7,484, up by 0.3%
6) Northern Cape - average rent is R7,910, down by 2.1%
7) KwaZulu-Natal - average rent is R8,200, up by 2%
8) Gauteng - average rent is R8,292, down by 0.6%
9) Western Cape - average rent is R9,185, up by 1.8%
One of the key differentiators for landlords over the last year, has been working with a credible rental agent who could provide the right guidance to minimise financial losses and the right legal guidance.
The Seeff Property Group offers a variety of rental services, from a basic sourcing service to a full management solution. These provide property owners and tenants with a turn-key peace of mind solution backed by top class systems and logistics for management of the property, the tenant and processes around the lease agreement including rent collections, payment of levies and other costs, inspections, management of maintenance needs etc.
Contact your nearest Seeff branch for more information.
Author: Gina Meintjes
