Rental Property Trends in Kyalami and Midrand
by Rochelle Holland
A country lifestyle, yet minutes away from the city hustle - Kyalami is a popular suburb amongst middle-aged residents who commute daily between Johannesburg, Midrand, and Pretoria. Kyalami offers various rental properties, including houses, cluster homes, and apartments, accommodating tenants with varied requirements.
Seeff Rental Agent, Rumbi Matsika, has seen Kyalami remaining in high demand over the past two years, with tenants looking to move into gated communities and estates - which the suburb is most popular for, including Kyalami Estates, Kyalami Glen, Kyalami Terrace, and Kyalami Boulevard Estate, to name a few.
Since 2020, due to the Covid-19 Pandemic and the two-month "Lock Down" of South Africa in March of the same year, the rental market has seen a drastic price reduction in the various areas surrounding Kyalami, making "estate living" more affordable for tenants. With these reduced rental prices, we find that very few properties are left vacant for long periods, and landlords immediately see the benefits of their property investments.
The most popular rental properties in Kyalami vary in price from R8 000 to R12 000 per month for the sectional title units and from R17 000 to R25 000 per month for the larger cluster homes and houses.
In March 2022, Rumbi successfully concluded a lease agreement in the Kyalami Glen Estate at a rental price of R29 000 per month for a 4-bedroom home, a record for Seeff Midrand in that estate. Another 4-bedroom house within the estate was rented at R26 000 per month (the lease was concluded in August 2021). A rental price of R8 500 per month was achieved for a smaller 2-bedroom home in Kyalami Boulevard Estate, where usually, these homes fetch as much as R14 000 or R16 000 per month depending on the condition and extensions done to the property.
We are seeing slight price increases and a stabilized rental market for the area for the first half of 2022. However, landlords remain realistic in pricing to secure great tenants.
Midrand is a neighbourhood with mostly sectional title units, with 1- and 2-bedroom apartments on offer for rentals. These properties fetch rental prices between R5 500 and R8 000 per month, and due to the worldwide Covid-19 pandemic's economic aftereffects on everyday tenants, it remains a strained market.
According to stats released by TPN (the Tenant Profile Network), it was reported that tenants in the lower to mid-priced rental market (R5000 to R10 000 per month) were the hardest hit, with most job losses and economic factors influencing the affordability of these tenants. Due to affordability and poor credit ratings, tenants remain under slight pressure, with only one in every three applications being approved.
Midrand remains a trendy area, and tenants are drawn to Midrand because of the affordable rentals and easy access to major metros, namely Sandton, the Johannesburg CBD, and Pretoria.
We are finding that tenants are remaining in the properties and instead renewing leases than moving out - with rental prices generally staying the same as the previous year. Most landlords are happy to keep the current leases in place and hold on to good-paying tenants.
Our rental agents, Kafuti Mutundu and Lerato Ngwenya, who specialize in the Midrand rental market, are finding that most of the tenants moving in and around the area are young executives, youngsters moving out of their family homes for the first time to share with friends or work colleagues, and young families.
Although we are facing a challenging rental market, we remain optimistic. Where properties are priced correctly and tenants' affordability is scrutinized thoroughly - we are still in good stead to secure tenants for rental properties in Midrand.
For any assistance with your rental property in Kyalami or greater Midrand, or if you require any further information about Seeff Midrand's placement and management services, don't hesitate to contact our rental agents or the office on 011 784 1222 and email sandtonleasing@seeff.com.