PayProp has published its rental index for 2019, showing a quarterly year-on-year (YOY) rental growth rate of 3.7%.
According to the property group, the final quarter of 2018 brought the first uptick in the national rental growth rate in two years with a YOY growth rate of 4.1%.
PayProp’s head of data and analytics, Johette Smuts, said that the slightly lower growth rate this quarter is still a good indicator of market recovery.
“The election has been a source of uncertainty and volatility which has affected the property market and its growth,” said Smuts.
“Reluctant buyers who are holding off purchasing a property ultimately need to live somewhere, and we’ll likely see an increasing demand for rental property which will push up prices and lead to further rental market recovery in 2019.”
PayProp’s data shows that the average national rent moved up into the R7,500 – R10,000 price brand for the first time in Q4 2018.
Nevertheless, almost a third of rents processed by PayProp still fell into the R5,000 – R7,500 category.
The Western Cape still weighs in as the most expensive province in which to rent, with an average rental of R9,030.
Approximately 30% of rents in the Western Cape fall into the R5,000 – R7,500 category, with a further 30% priced above R10,000 including over 11% priced above R15,000 – the highest percentage in this band.
Out of all the provinces, North West has the biggest percentage of renters in any one bracket – 54.6% of tenants in the region rent for between R2,500 and R5,000. It also has the country’s lowest average rent, at R5,031, and the smallest percentage of rentals over R15,000.
Gauteng – R8,000
Almost 40% of Gauteng rentals are priced between R5,000 – R7,500, and yet the average rental is R8,000, the second-highest of all the provinces in Q1 2019.
Over 20% of rentals in the province are priced higher than R10,000.
Western Cape – R9,030
The Western Cape, which recorded an average rent of R9,030, remains the most expensive province to rent in. However, most rentals are between R5,000 – R7,500, with 30% falling in this category.
Nearly a third (30%) of rentals in the province however, are priced over R10,000, and over 11% is priced above R15,000 – the highest percentage in this band nationally.
KZN – R7,975
KwaZulu-Natal is the third most expensive province to rent in, but while the average rental falls within the R7,500 – R10,000 bracket at R7,975, only 18% of rentals in the province are in this bracket.
KZN has the second biggest percentage of rentals priced over R15,000.
Eastern Cape – R5,694
Although the average rent in the Eastern Cape is R5,694, 34% of rents in the province fall within the R2,500 – R5,000 category.
Over 62% are between R2,500 – R7,500. The Eastern Cape has the highest percentage of rentals below R2,500 out of all the provinces.
Free State – R6,054
At R6,054, the average rent in the Free State falls within the R5,000 – R7,500 category, and yet a third of all rentals in the province fall within in the bracket below.
Over two-thirds of rental properties are rented for R2,500 – R7,500.
Limpopo – R7,117
Out of all the provinces, Limpopo’s distribution across the various price bands is the most symmetrical.
Because of this and the high percentage of rentals in the R5,000 – R7,500 bracket, it’s no surprise that the average rent in the province (R7,117) falls within this band as well.
Mpumalanga – R7,298
More than a third of Mpumalanga’s rentals fall within in the R5,000 – R7,500 bracket, which is also where the average rental in the province (R7,298) falls.
Mpumalanga’s price band distribution is skewed towards more expensive rentals, with over 36% of rentals priced over R7,500.
North West – R5,031
Out of all the provinces, North West has the biggest percentage of renters in any one bracket – 54.6% of tenants in the region rent for between R2,500 – R5,000.
It also has the country’s lowest average rent (R5,031) and the smallest percentage of rentals over R15,000.
Northern Cape – R7,817
The Northern Cape has a fairly even price band distribution across the middle ranges, and only 26% of the province’s rentals fall within the R5,000 – R7,500 band, the most populous national category.
Almost 20% of rentals fall within the brackets on either side, putting almost two-thirds of all Northern Cape rentals in the R2,500 – R10,000 range. Only 10% of rentals are less than R2,500 per month.