Devel­op­ment a shop­ping par­adise

Rentals up by 15 to 20 per­cent

Weekend Argus (Saturday Edition) - - PROPERTY -

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.

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