Take a look at what R12,000 a month gets you in South Africa – Joburg vs Pretoria, Durban, Cape Town and Gqeberha
High-interest rates are reducing the number of first-time buyers in the property market, making the rental market more buoyant, says Tyson Properties.
The property experts said more people are choosing to rent rather than buy in South Africa – marked by the contrast to an increase in first-time homebuyers when interest rates were low, and people could easily pay back loans.
On 26 January, the South African Reserve Bank (SARB) raised interest rates by a further 25 basis points – the overall impact of these rate hikes means 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 it expects the rental sector to continue growing in South Africa as investors buy more properties.
“The middle market is very strong and resilient, but we am concerned that the top end of the market will continue to be slow and impacted by political and economic uncertainty,” said Harcourts.
The lower-priced end of the market is very sensitive to poor economic conditions. It will probably only improve once we see better economic growth and job creation, added the company.
“Rentals took a big knock during the low-interest rate cycle as many tenants moved to become homeowners. This has definitely swung back to a more normal position, and we have seen our property management numbers increase again during 2022,” Harcourts added.
“As affordability becomes an issue for buyers, we will see more people renting.”
BusinessTech looked at the following:
Johannesburg
2 Bedroom Apartment / Flat to Rent in Braamfontein – R12,000
2 Bedroom Apartment / Flat to Rent in Craighall Park – R12,000
Pretoria
3 Bedroom Apartment / Flat to Rent in Savannah Country Estate – R12,000
1 Bedroom Apartment / Flat to Rent in Brooklyn – R12,000
Durban
2 Bedroom Apartment / Flat to Rent in Morningside – R12,000
Cape Town
2 Bedroom Apartment / Flat to Rent in Claremont Upper – R12,000
1 Bedroom Apartment / Flat to Rent in Observatory – R12,000
Gqeberha
2 Bedroom Apartment / Flat to Rent in Walmer – R12,000
Read: Deadline for property owners in Cape Town – what you need to know
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