A look at Cape Town’s booming rental market – where prices can shoot over R100,000 a month

·16 Jun 2023

Ross Levin from Seeff says the higher interest rate has increased the demand for rental properties at the top end in Cape Town.

Levin said that semigration is increasing demand for rental accommodation, with a large number of people from Johannesburg and Durban moving to Cape Town.

Moreover, tourism, the return to the office, and colleges and universities are also significantly increasing demand.

The price bracket over R80,000 is also seeing far higher interest, as opposed to the previous R25,000 to R35,000 per month, which previously boomed.

For instance, Seeff’s agents have concluded rentals in Bantry Bay and the Waterfront for R130,000 and R120,000 per month, respectively.

Moreover, apartments in the R10,000 to R20,000 per month range are also in demand, with Levin saying that rental yields in Atlantic Seaboard and City Bowl tend to be around the 4% to 6% mark.

The Southern Suburbs are also seeing a substantial increase in rental demand, with the average rental in the area being roughly R22,000 monthly.

Properties in Constantia can get anything from R25,000 to R35,000 per month, however, luxury properties can reach R100,000 per month.

Apartments in Woodstock, which is close to the CBD, get roughly R10,000 per month.

Seeff’s Andrew Collins said that there is a stock shortage in several of Cape Town’s areas, including Hout Bay and Llandudno, especially in the lower and medium price bands – R10,000 to R35,000.

Below are some rental properties on the market in Cape Town at various prices: