Cape Town flats continue to lead in a modest rental growth market

Posted On Monday, 27 November 2017 15:55 Published by
Rate this item
(0 votes)

Since 2015, Cape Town flat rentals have been outperforming their peers strongly, but are taking a breather for now, only growing by 4% over the past year.

Grafiek1_Nov17

This is according to the latest Rode’s Report on the SA Property Market. Cape Town’s super rental growth since 2015 echoes the superior growth house prices have been showing in the Mother City.

Over the past year, Durban has shown the strongest year-on-year growth (+7%) in flat rentals, compared with Pretoria and Johannesburg that recorded a 6% growth.

“We predict overall that the national growth average of 5% reflects a muted economic growth that is expected to continue,” says Rode. “The affordability factor comes strongly into play and is mirrored in the financial strain households are experiencing along with modest growth in salaries.”

In July 2017, nominal disposable salaries (as measured by the BankservAfrica Disposable Salary Index, or BDSI) were up by a yearly rate of 7%, but against this – in real consumer-price deflated terms – growth of only 2% was recorded.

While flat vacancy rates in the main metro areas of Durban (at 7%) and Johannesburg (at 15%) are relatively high, those in Pretoria (at 2%) and Cape Town (at 3%) are low, enabling national vacancy rates to remain at just below 5%.

Commenting on this, Rode notes: “This is what makes residential property different from office buildings; the vacancy risk is lower, especially in flat blocks that lie outside areas suffering from urban blight.”

Last modified on Monday, 27 November 2017 16:07

Most Popular

Waterfall welcomes PSG Wealth to The Ingress

Nov 20, 2018
095
Attacq Limited, the JSE listed property company developing Waterfall City and Waterfall…

Dipula's continued disciplined execution of strategy delivers solid results

Nov 19, 2018
Izak Petersen SA REIT
SA-focussed and diversified REIT, Dipula Income Fund, reported double-digit growth in…

Redefine’s Southcoast Mall Voted The Best

Nov 23, 2018
SOUTHCOAST MALL
JSE-listed diversified real estate investment trust Redefine Properties’ Southcoast Mall…

The October Consumer Price Index (CIP) showed a slight acceleration in its year-on-year inflation rate

Nov 23, 2018
FNB John Loos
Today’s October CPI (Consumer Price Index) showed a slight acceleration in its…

Safari Investments RSA Limited - interim results for the six months ended 30 September 2018

Nov 23, 2018
DIRK ENGELBRECHT
JSE-listed REIT Safari Investments RSA Limited today posted strong results for the…

Please publish modules in offcanvas position.