Rental rates in North­ern Cape soar

Weekend Argus (Saturday Edition) - - PROPERTY -

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.

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