R170,000

Financial Mail - - FEATURE / RENTALS -

what re­turns they can get on long-term rental prop­er­ties, es­pe­cially in the win­ter months,” she says. She be­lieves the mar­ket has be­come over­priced.

Sa­muel Se­eff, chair­man of the Se­eff Prop­erty Group, voices a sim­i­lar sen­ti­ment.

He says Cape Town’s rental pre­mium of up to 20% (and more in some ar­eas) above most other cities is likely to come un­der pres­sure, es­pe­cially at the top end.

“Where R80,000/month seemed a high rate just two years ago, top-end homes in Clifton are now com­mand­ing up to R150,000-R170,000/ month,” he says. “Whether this will be sus­tain­able in the cur­rent weak eco­nomic cli­mate is ques­tion­able.” The lat­est rental in­dex re­leased by rental pro­cess­ing firm Payprop con­firms that the West­ern Cape is now SA’S most ex­pen­sive prov­ince in which to rent a res­i­den­tial prop­erty, at an av­er­age R8,231/month.

That is 75% more than SA’S cheap­est prov­ince, North West, where the av­er­age home is let for R4,681/month. Un­til mid2016, the North­ern Cape was the coun­try’s prici­est prov­ince in terms of rentals on the back of a huge sup­ply short­age.

Payprop data shows that rentals across SA rose by 7.62% in the first quar­ter, up slightly from 6.25% recorded a year ear­lier.

Jo­hette Smuts, head of data and an­a­lyt­ics at Payprop, says the uptick has been driven by a still strong West­ern Cape as well as Gaut­eng, where there has been an in­crease of al­most 10% in the first quar­ter.

Smuts says Gaut­eng’s re­bound, from lev­els be­low 6% in 2016, is un­ex­pected, see­ing how lack­lus­tre the prov­ince’s rental growth has been.

How­ever, she notes it’s still too early to say whether its rental growth re­cov­ery is sus­tain­able.

/month on the At­lantic seaboard

Where R80,000/month seemed a high rate just two years ago, top-end homes in Clifton are now com­mand­ing up to R150,000 to R170,000/month. Whether this will be sus­tain­able in the cur­rent weak eco­nomic cli­mate is ques­tion­able Sa­muel Se­eff

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