Real estate group Seeff says that it is currently seeing a lot of vacant rental homes and units \u2013 and the main reason for this is that landlords are being unrealistic in their price expectations.<\/p>\n
According to Seeff, the rental markets in Gauteng’s major metros are extremely competitive, and if a rental property is not priced correctly, it will in all likelihood remain vacant.<\/p>\n
Charles Vining, Seeff\u2019s MD in Sandton, says in this affluent area agents are increasingly experiencing greater negotiation on price (about a 10% reduction) when finalising a lease.<\/p>\n
Lower rentals priced at below R12,000 per month are not negotiated as much, but higher value rentals are significantly negotiated, he said.<\/p>\n
“Economic pressure is the overwhelming factor and tenants are budgeting carefully, saving 10% per month can make a big difference at the end of a 12 month period.”<\/p>\n
However, not all rental markets are the same, with some being much tighter than others. Seeff broke down the highest demand prices for rentals across Gauteng.<\/p>\n
Sandton and Fourways and Midrand<\/strong><\/p>\n Rentals between R7,000 and R12,000 per month are in high demand in suburbs – with the R6,000 to R9,000 per month<\/strong> price band being the most popular.<\/p>\n Vining concludes that there is a lot of rental stock available in Sandton and surrounds and landlords that are unwilling to negotiate on price or inclusions are holding vacant units.<\/p>\n Pretoria East<\/strong><\/p>\n Pretoria East’s rental rates have declined in the first quarter of 2018 by about 8% to 12.5%, Seeff said.<\/p>\n “Tenants here have many options with the current supply of rental property and properties need to be very competitively priced to avoid vacancies, hence the drop in rental rates.<\/p>\n The most active price band across the board in Pretoria East is for properties priced between R6,500 and R 8,500 per month<\/strong>.<\/p>\n Randburg<\/strong><\/p>\n Randburg rental rates are also under pressure and are down by about 20%, if not more, Seeff said.<\/p>\n “Rental demand in Randburg has decreased because affordability is a problem and tenants don\u2019t meet credit criteria. We are also experiencing many renewal leases as opposed to new placements.”<\/p>\n More expensive properties priced between R15,000 and R25,0000 per month<\/strong> is the most active rental range, while properties priced around R7,000 per month take a while before they are rented out, the group said.<\/p>\n Seeff said that landlords in Randburg are demanding higher rental prices due to rates and levy increases, but that tenants can\u2019t afford these increases and then rather give notice.<\/p>\n Centurion<\/strong><\/p>\n The Centurion rental market is very strong across all bands with both private and corporate rentals, Seeff said.<\/p>\n The most popular price range is from R5,000 to about R8,000 per month<\/strong> for a one or two bedroomed apartment.<\/p>\n “However, in this price range a number of developers have built multi-storeyed blocks of apartments and to get the units let they are offering huge discounts and various incentives,” the group said.<\/p>\n Braamfontein<\/strong><\/p>\n Braamfontein has a shortage of student accommodation, which has resulted in “unprecedented demand” for student rentals, Seeff said, adding that\u00a095% of the enquiries it receives are for student accommodation.<\/p>\n The biggest demand is for property priced between R7,000 and R9,000 per month<\/strong>.<\/p>\n Generally bachelor units are priced from R6,000 per month, one bedroom apartments from R7,500 per month and two bedrooms from R8,500.<\/p>\n
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