Higher price bracket rentals in demand in Cape Town

Posted On Tuesday, 23 February 2016 14:22 Published by
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Access to a global tenant profile reduces risk of non payment in rental brackets above R25 000 in a difficult in South Africa market.

Apartment_in_Mouille_Point

Cathy Cockcroft of IHPC estate agents says that, with IHPC being a German based company with strong connections to the European community in Cape Town and abroad, they have managed to sign lease agreements with rentals ranging from R14 000 (for a one bedroom apartment) per month to R45 000 (for a three bedroom apartment) per month in the City Bowl and Atlantic Seaboard areas over the last two quarters.

“There was a lull in activity in November and December in the long term residential rental market, possibly due to many landlords renting their properties out as short term accommodation, which created a shortage. In the last two months, there has been a surge in demand for good properties to rent long term,” said Cockcroft.

“While short term letting is sometimes tempting (from the landlord’s point of view), long term rentals are more stable and financially viable.”

There is currently a huge demand for properties to rent with up to 70% of clients being foreigners. IHPC are dealing with prospective tenants from Germany, UK, France, USA, as well as Durban and Gauteng.

She has had a British client who paid the two-month security deposit plus the full amount for the year’s lease for a high end property to rent on the Atlantic Seaboard, as part of their relocation package.

“It is usually a third of a person’s income that goes to rental (from an affordability perspective) and if a person is prepared to pay around R20 000 to R30 000 on rent each month, you know they are fairly financially secure,” said Cockcroft.

According to Cockcroft, "homes with good security in central areas with secure parking tend to be snapped up very quickly.” 

Last modified on Tuesday, 23 February 2016 16:50

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