The Cape rental market has grown exponentially as demand for the Cape lifestyle expands, with an influx of people to the market keeping rental agents very busy, according to the Seeff Property Group.
The Western Cape property market in general is benefiting from good governance, which means good service delivery, which in turn boosts demand for property, along with a quality lifestyle and access to excellent facilities and amenities.
An independent research institute, Good Governance Africa, has for example, recently announced that several Western Cape municipalities are deemed to be the best in the country. These are often associated with strong property markets.
Cape Town is a prime example of strong demand for rental accommodation. Helga Clemo, licensee for Seeff Century City, says the rental market in that neighbourhood can most certainly be described as buoyant. During the second half of 2023, there was also a steady increase in rental rates, and a positive response from both landlords and tenants.
Landlords have been eager to get the most out of their investment properties. Tenants, while their sentiment is that Century City is overall expensive, have nonetheless been willing to pay the current rental rates to maintain a lifestyle within this unique, mixed-use precinct of Cape Town.
The most popular rental range here is between R14,500 and R18,000 per month, with two-bedroom units being the most in demand. The three highest monthly rentals achieved by Seeff include R70,000 for a furnished penthouse in Crystal Towers, R35,000 for a furnished unit in Knightsbridge, and R29,000 for a unit in Manhattan Quarter.
The northern suburbs rental market around the Durbanville and Welgedacht areas is also very busy, according to Daniela De Villiers, rentals manager for Seeff Durbanville. Seeff's rental book grew by around 30% over the last year, and landlords definitely took advantage in increasing the rent. Seeff is aiming for a further 50% growth in its rental book this year.
The R10,000 to R15, 000, and R20,000 to R30,000 per month rental ranges are the most in demand. The highest monthly rentals achieved by Seeff include R60,000 in Clara Anna Fontein, R45,000 in Welgedacht Estate and R40,000 in Eversdal.
Quintus Gerber, a rental agent with Seeff Strand, says 2023 was a great year for the rental market. Due to the high interest rate, there was a massive increase in the rental market, with rental prices rising due to a shortage of properties. The outlook for this year remains very positive.
The most popular rental price range in Strand is between R10,000 and R15,000 per month, and for Gordon's Bay, between R7,000 and R10,000. The highest monthly rentals achieved by Seeff were in Beach Road in Strand, being R35,000 in "97 On Strand", R20,000 in "Topaz", and R27,500 in the Greenways Golf Estate.
Stellenbosch has also experienced a surge in the rental market, according to Willemien Craill, a rental agent with Seeff Stellenbosch.
The most popular rental range here is between R40,000 and R55,000 per month. The highest rentals achieved by Seeff over the last year were in Central Stellenbosch, Brandwacht aan Rivier, and in Sitari Country Living Estate.
Seeff's rental agents say that if landlords are market-related with their rental rates, they should usually be able to fill their properties. Working with an experienced rental agent with a strong back-office system is also important to ensure the property and tenant is properly vetted and managed.