The residential rental market in both Pinelands and Thornton continues to provide excellent returns for the investor.
Rental increases continue their upward cycle with escalations remaining in double figures. The demand continues to outstrip supply. Our managed rental portfolio continues to perform exceptionally well with 97% of our tenants paying on time. This can be attributed to our extremely strict rental criteria. Unfortunately, as previously mentioned, credit profiles of many applicants remain suspect. We demand that prospective tenants provide proof that they are registered taxpayers. They need a regular monthly income which covers their rental payments at least three-fold and a disposable income sufficient to cover their living costs.
Demand
Demand for freestanding 3 and 4 bedroomed homes remain buoyant up to R25 000 pm. In security complexes, such as The Orchards and Park Lane, very little is available. Most townhouses provide very good rental returns, especially the animal friendly ones. The top end of the market has moved upwards of R30 000 pm for houses and R14 000 pm for apartments which indicates an increase of more than 10% in the past year. We have just recorded a rental of R42 000 pm in Links Drive. Pineworx remains one of the most sought-after blocks.
Tenant Profile Network Partnership
We are in partnership with TPN (Tenant Profile Network) to whom we submit our rental records monthly. Tenants then receive a message confirming that their credit profiles are updated. For those who pay on time, this is good news as they can use this to apply for credit when needed. For those who do not pay on time, it reminds them that they need to take care of their credit profiles.
We have decided to extend our service offerings to enable any landlord to contact us should they wish to have any of their private clients vetted. There will be a small charge but this is minimal if one considers the security of long-term returns on one’s investment.
Sales
Seeff concluded 42 sales to the value of R115m since the beginning of the year which gives us a market share of 21%. We continue with our success in the selling market. On Property24 you will note that we remain the most active agency at the top end of the market, In the last quarter there were 7 sales above R5m with the most expensive sale that of a Home in Bye Way at R6.25m. The Pinelands team concluded 5 of those sales which gives us a market share of 70% at the top end of the market in this quarter​.
General sales trends
With the interest rate having just reduced by 0.25% and the inflation rate now dipping below 4%, there is a likelihood of a further reduction in interest rates which will lead to a further positive outlook for the residential market.
The increase in the demand for property in the Pinelands and Thornton area continues to exceed supply which is good news for sellers. At the time of writing there were only 145 properties on the market, many of them already sold, down from 177 in the last quarter.​ There were 67 registrations, total value R190m, in Pinelands in Q3/24 compared to 47, total value R132m, in Q2/24. In Thornton there were 14 registrations, total value R21m in Q3/24 compared to 19 total value R30m in Q2/24. The value of all sales in the area of R212m in Q3/23 showed an increase of around 28% since the last quarter. The average price in Pinelands was up by about 4% whilst the median price was static at R3.65m. In Thornton the median price was up to R2.46m although the average price was marginally down. This meant that there were fewer properties sold at the top end of the market in Thornton.
Price range demand
The biggest demand is in the R3.2m to R4.5m range, slightly up from before, with more properties now selling above the R5m mark which is indictive of the shortage of stock in the market. In Thornton the biggest demand remains under R2.5m with only three homes selling above that. The median price for sectional title units was down to R1.3m.
​Highest sale prices in Q3/2024
In Pinelands there were seven sales above R5m with the highest price at R6.250 for a home in Bye Way sold by Seeff. In Thornton there was one sale of R3m in Denneboom.
Legal Matters
​Can tenants give notice to terminate their lease agreements before expiry date?
One of the most common disputes that the Rental Housing Tribunal must deal with is the matter of what claims a landlord may have against a tenant who wishes to terminate their lease before it expires. The Consumer Protection Act provides that a tenant may cancel a lease agreement by giving twenty business days’ notice, in writing, of such intended cancellation notwithstanding the existence of any provisions in the lease to the contrary. This however only applies to Natural Persons and NOT where one of the parties, either the tenant or landlord, is a juristic person.
Now there may be many reasons why a tenant wishes to cancel early but there will be consequences. In cases of cancellation the tenant remains liable to the landlord for all amounts owing in terms of the concluded lease to the date of cancellation. The landlord is entitled to impose a reasonable cancellation penalty on the tenant.
Intrinsic factors such as the intended duration of the lease and/or the potential of the landlord in securing another tenant for the premises will have to be taken into consideration in determining such cancellation penalty.
The Rental Housing Tribunal has effectively ruled that the landlord can generally claim up to TWO months rental as a penalty but MUST try and mitigate his/her losses. The uncertainty that is, nevertheless, created by this provision has the potential to negatively impact those landlords who wish to use concluded rental agreements as a form of security or additional income.
8 EXCEPTIONAL HOMES SOLD BY OUR TEAM
Our team is proud to showcase some of the most expensive homes sold by us in Pinelands.
Should you wish to achieve the best price for your home we would love to meet to discuss how our dedication and expertise can achieve the best possible price for you.
Seeff has a large national and international footprint with many buyers looking for homes at the top end of the market.
