Development a shopping paradise
Rentals up by 15 to 20 percent
DEMAND for rental accommodatio n at Century City is outstripping supply and has resulted in a 15 percent to 20 percent increase in rentals in the past year, says Rob Downey, manager of Property World, the official on-site rental agency.
He says Property World has about 170 rental properties on its books and a waiting list of would-be tenants, with the strongest demand being for one-and two-bedroom units.
“Rentals have risen by about R1 000 a unit in the past year with one-bedroom units now letting for R5 000 to R5 500 a month and twobedroom units for between R6 000 and R6 500. With one-bedroom units selling for R800 000 to R850 000 and t wo - b e d r o o m u n i t s av e r a g i n g around R1.3 million, achievable rentals are offering good returns on investment, particularly for one-bedroom units which are getting more than six percent.”
Downey says there are a number of factors contributing to the shortage of rental stock.
“First, speculative investors have been absent in recent years, so most of our buyers in the past two to three years have been owner occupiers. Second, Century City has become more popular due to its central location, high standards of safety and security and the lifestyle with a wide array of amenities literally on the doorstep. Also, tenants are attracted to Century City because the developments are modern, clean and well maintained.
“In addition, the National Credit Act and the banks’ stricter lending criteria has made buying property much more difficult. It’s out of the reach of many young professionals who previously would have qualified for bonds.”
D o wn e y b e l i e ve s t h e h i g h e r rentals will encourage investors.
“Their general perception is that the market has bottomed out and they need to get in now to get ahead of the pack.”
GREAT RENTALS: Bougain Villas is one of the popular developments at Century City.