What R350,000 a month in rent gets you in South Africa
Despite South Africans facing numerous economic headwinds, some rental properties are on the market for over R300,000 a month.
Cape Town, especially, is home to several extremely expensive rental properties.
The rental market saw impressive growth in 2022. The PayProp Annual Market Report for 2022 showed that the average national rent grew by 3.4% year on year from Q4 2021 to Q4 2022 – increasing by R268 to R8,175.
“We have reached a very positive milestone in that rental growth has now recovered to pre-pandemic levels. It is now higher than the 3.2% recorded in Q1 2020,” Johette Smuts, head of data analytics at PayProp, said.
However, Smuts said that affordability challenges could curb a continued recovery in 2023, with load shedding and interest rate increases hurting tenants financially.
The dire economic situation is also affecting the buying market.
Earlier this year, Tyson Properties said that high-interest rates were reducing the number of first-time buyers.
In January, the South African Reserve Bank (SARB) raised interest by a further 25 basis points, meaning that fewer people can purchase homes as only those who are financially well-off can keep up with the rising cost of mortgage payments.
Property company Harcourts said that the lower-priced end of the market is extremely sensitive to a poor economy. It will only improve with better economic growth and job creation.
First-time buyers were given some good news during the budget speech in late February. Finance Minister Enoch Godongwana said that the brackets in the transfer duty table would be increased by 10%.
This means that the threshold for tax-free properties will increase from R1 million to R1.1 million.
The announcement was welcomed by property experts, as it will help first-time buyers enter the property market.
BusinessTech looked at what you can get for R350,000 a month:
6 Bedroom House in Overkloof, Hout Bay
R350,000
5 Bedroom House in Camps Bay, Cape Town
R300,000
10 Bedroom House in Constantia, Cape Town
R290,000
4 Bedroom House in Melrose, Johannesburg
R200,000
All property prices were acquired via Property24. Properties were verified on the relevant realtor’s website. Properties with a Price on Application (POA) were excluded.
Read: What a R150 million house looks like in South Africa: Sandton vs Cape Town
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