Carol Reynolds, Pam Golding Properties area principal for Durban Coastal believes that it is especially younger, career-minded individuals, who are not yet at the point of being able to buy, who are driving this interest.
“Generally the rental market is buoyant across all price bands but it is the lower to middle price bracket which is seeing the highest demand for rental property,” said Reynolds adding that this provides great incentives for investors looking for a sound monthly income stream.
According to Pam Golding Properties Research these hubs of activities in KZN represents the third highest regional rental in South Africa, after the Northern and Western Cape. The research shows that the average rental in South Africa during Q2 2016 was R6,579.50 (unchanged from the first quarter) while the average rental in KZN was R6,952.
Reynolds said that it is the areas offering secure, complex or apartment living that offer good returns for investors since these are the properties in demand.
Barbara Becker, Pam Golding Properties area principal in the Pietermaritzburg and KZN Midlands areas added that it is also gated estates that are pushing up rental demand in this area. “Generally we are still finding that flats, houses and especially security complexes in the north of the city are still attracting higher rentals than the south, following a similar trend to selling prices,” she said.
Top photo: This three bedroom home, situated in a secure estate in La Lucia, is available at a rental of R24,000 per month through Pam Golding Properties,