Cape Town’s Southern Suburbs and CBD have seen a rising demand for student accommodation as more local and foreign students flock to the city for their studies. Student lodging in the private sector is the most sought after as universities and tertiary institutions in Cape Town are not able to house all of their students.
This presents more opportunities for property developers and investors to respond to the need for student accommodation. New blocks of flats are being planned, constructed and furnished in the Southern Suburbs, particularly in Newlands, Rondebosch and Mowbray.
“There is not only a South African demand, there is a worldwide need for good, quality student accommodation,” says CEO of Student At Home Emily Whitefield. “Private student accommodation is a growing property opportunity in SA, with over 30 000 students currently studying in the city centre,” she explains.
Student lodging is in short supply
One factor contributing to the shortage of student lodging is the rising trend of listing apartments for short-term holiday rental rather than a long-term rental for students and residents. The high price of rent is a concern for students - many students cannot afford to rent apartments and so they look for cheaper alternatives.
However, rental rates are slowly decreasing in the Southern Suburbs, which will ease the supply/demand balance. Another issue that needs addressing is the management of student accommodation and shared residential properties.
“Developers tend to forget how the management of student accommodation is vital for its existence,” explains Whitefield. There needs to be a standard of strict but fair rules for student tenants in shared apartment blocks, which will help them study in a quiet and safe environment. This also enables a pleasant living environment for non-student residents.
What to do when looking for student accommodation
Whitefield offers some advice for students looking to move to Cape Town for their studies next year. Firstly, start planning your accommodation as soon as you apply for university. Find out when the deadlines for residence applications end and when submissions need to be completed.
If a university residence is not available, start chatting with estate agents to find an apartment close to the university. They will be able to give you an estimate for rent and you can start budgeting accordingly. The estate agents will also be able to give you detailed information about amenities and what the rent includes.
Ask the agents about the safety of the apartments and get answers to any other questions you may have. Look at the property of Google Maps and Street View to see what the surrounding area looks like. Once you decide on a place to stay, view it in person when you arrive in Cape Town before signing a lease.
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