City rental de­mand spikes

In­ter­est in prime lo­ca­tions

Weekend Argus (Saturday Edition) - - FRONT PAGE - JOSEPH BOOY­SEN

DE­MAND for rental prop­erty at prime lo­ca­tions in Cape Town, such as the At­lantic Se­aboard, has led to some vis­i­tors spend­ing about R30 000 a day.

Pam Gold­ing Prop­er­ties is see­ing a trend in which vis­i­tors are pay­ing pre­mium prices to en­joy the pris­tine beaches and cos­mopoli­tan life­style the city has to of­fer. The com­pany said homes along the At­lantic Se­aboard were fetch­ing daily rentals of about R30 000 and rental ac­tiv­ity was also ac­cel­er­at­ing across all re­gions, with longer leases in high de­mand.

Dex­ter Leite, Pam Gold­ing Prop­er­ties rental man­ager for the Cape re­gion, said most of these ten­ants were re­peat hol­i­day vis­i­tors. He said that with de­mand about to peak for sum­mer, Pam Gold­ing Prop­er­ties had al­ready let a beach­front bun­ga­low in Clifton for R23 000 a day and a large villa in Bakoven for R30 000 a day.

Leite cited the FNB Prop­erty Barom­e­ter, which said the At­lantic Se­aboard and the City Bowl recorded the high­est house-price in­fla­tion rate in the Western Cape, at 29.9% and 21.1% re­spec­tively.

“Its not sur­pris­ing that the rental mar­kets in these two ar­eas are fol­low­ing this de­mand trend. Rent­ing is ideal for those re­lo­cat­ing to Cape Town for a pe­riod of time as it pro­vides for greater flex­i­bil­ity than if one were to buy. With many blue-chip com­pa­nies mov­ing into the Water­front and City Bowl, there is also a strong mar­ket for cor­po­rate and in­di­vid­ual rentals.”

Leite said new sec­tional-ti­tle de­vel­op­ments were also in high de­mand, es­pe­cially in the City Bowl where the live­work-play life­style has gained trac­tion with flat rentals be­tween R13 000 and R18 000 were sought af­ter par­tic­u­larly by young pro­fes­sion­als. He said there were also re­quests for three-bed­room homes in the City Bowl with monthly rentals be­tween R25 000 and R45 000.

“Prop­erty price in­fla­tion in the Cape Metro re­mains well above the na­tional av­er­age of 10.9% dur­ing the first half of the year. For many who want to call Cape Town home, rent­ing is a more af­ford­able and flex­i­ble op­tion un­til they have de­cided where to in­vest.

“There are also high-end rentals such as a three-bed­room Mouille Point apart­ment with stun­ning sea views, avail­able to rent for R150 000 a month. The av­er­age long-term rental for a three- or four-bed- room home in Camps Bay R60 000 a month.”

Leite said the south­ern sub­urbs, where there is stiff com­pe­ti­tion for ac­cess to schools, had also shown a marked in­crease in rental ac­tiv­ity over the past year. Rentals in­clude a three-bed­room Bish­op­scourt home for R163 800 a month and a four-bed­room home in Con­stan­tia for R100 000 a month.

A Con­stan­tia home, avail­able for R120 000 a month, in­cludes a well- es­tab­lished gar­den, a pri­vate swim­ming pool and a Jacuzzi, as well as a games room that opens up to its own putting green.

Leite said the up­per end of the mar­ket, par­tic­u­larly in Con­stan­tia, Bish­op­scourt and the Steen­berg Golf Es­tate in Tokai, had at­tracted in­ter­est.

He said the north­ern sub­urbs of­fered af­ford­able rental op­tions for fam­i­lies, young pro­fes­sion­als and stu­dents where prop­er­ties with three bed­rooms or more let for be­tween R16 000 and R26 000 a month, while one to two-bed­room flats let for about R6 000 a month.

“The Tyger Water­front, with its ex­cel­lent se­cu­rity and close prox­im­ity to the Wil­low­bridge Mall and Tyger­val­ley Cen­tre, is par­tic­u­larly pop­u­lar with young pro­fes­sion­als. Life­style es­tates are in high de­mand, es­pe­cially with fam­i­lies re­lo­cat­ing from other prov­inces.

“They of­ten move to the north­ern sub­urbs be­cause of the bilin­gual schools in the area. Monthly rentals at these es­tates can range from R30 000 to R50 000,” said Leite.

joseph.booy­sen@inl.co.za

This fam­ily home in the Up­per Con­stan­tia Av­enues, with a gar­den and pri­vate swim­ming pool, is avail­able to rent for R120 000 per month.

PIC­TURES: SUP­PLIED

A fully fur­nished flat in Mouille Point for R150 000 per month.

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