Properties along the most expensive coastline in the country are already breaching the R170,000 per month mark, with the latest FNB Property Barometer noting in Q2 2017, the Atlantic Seaboard average house price inflation rate was 29.9% year-on-year and the City Bowl 21.1%.
“There can be little doubt that as with the sales sector, the rentals sector of the Cape metro remains the strongest performer in the country,” said Samuel Seeff, chairman, Seeff Property Group. “Recent reports from TPN have also pointed to the Cape as having the strongest rentals market, generally with the best-paying tenants, this, despite the premium that Cape property now commands, including a rental premium of up to 20% and more depending on the area.
“Where R80,000/month seemed a high rental just two years ago, we are now seeing top-end properties in Clifton commanding up to R150,000 to R170,000 per month.”
Dinis Martins, COO for Seeff Atlantic Seaboard and City Bowl, said however that these high rentals are probably not going to become the norm in the short term due to the country’s weak economic climate.
Current escalation rates stand at around 8% on average while landlords are achieving yields/ROI of around 4% on average, but this varies according to the property and location. The more expensive the property, the lower the rate tends to be simply because top-end rates are under pressure.
These are the priciest rental markets
R170,000/month – Bantry Bay/Fresnaye
R150,000/month – Clifton
R80,000/month – V&A Waterfront
Top photo: A four-bedroom villa with all the amenities you could want, overlooks the ocean. Rental of R135,000/month. To see more, click here