Rental rates in Northern Cape soar
THE 2018 South African Survey, published by the South African Institute of Race Relations (IRR), has found Northern Cape had the third cheapest rental rates in 2010 (R3 803), but by last year it was the second most expensive (R7 119), after the Western Cape.
The report found only these two provinces had average monthly rentals of more than R7 000, with Gauteng having the third highest average rate.
IRR analyst Kerwin Lebone says Northern Cape’s leap in rental prices is “phenomenal” since the proportion of households in the province that rent accommodation is the lowest in the country, at 1.4%.
He believes the most plausible explanation for the growth is the construction of the Square Kilometre Array in the province – a collaborative international project that started in 2014 and will run until
2030. This may have enabled landlords to increase their rental rates to above market rates for international tenants.