{"id":713110,"date":"2023-08-27T15:00:00","date_gmt":"2023-08-27T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=713110"},"modified":"2023-08-25T16:18:36","modified_gmt":"2023-08-25T14:18:36","slug":"how-much-the-average-south-african-is-paying-for-rent-in-every-province","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/713110\/how-much-the-average-south-african-is-paying-for-rent-in-every-province\/","title":{"rendered":"Where you will find the cheapest rent in South Africa"},"content":{"rendered":"\n

The latest PayProp Rental Index for the second quarter of 2023 shared some good news for landlords in South Africa, as rental prices showed year-on-year growth across all nine provinces.<\/p>\n\n\n\n

According to the report, South Africa\u2019s recent trend of positive rental growth continued for a seventh
successive quarter in Q2 2023, accelerating to 4.4% year-on-year. <\/p>\n\n\n\n

“This is the fastest we\u2019ve seen since the 5.3% measured in Q4 2017, and it is still trending upwards,” noted the report.<\/p>\n\n\n\n

In pure pricing terms, this means the national average rent for the second quarter is R8,375<\/strong>, up 4.4% from R8,032 in Q2 2022.<\/p>\n\n\n\n

Quarter-on-quarter, however, growth was just R22 in rand terms, but as the graph shows below, it\u2019s too early to say if rental growth is peaking. <\/p>\n\n\n\n

Inflation dropped to 4.7% in July after finishing the last quarter at 7.1% \u2013 putting it within the SARB\u2019s target range of 3% to 6% for the first time since April 2022. PayPrp noted falling inflation will ease the pressure on consumers, potentially making it easier to achieve higher rent increases.<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

Provincial performance <\/strong><\/p>\n\n\n\n

All nine provinces across South Africa showed positive rental price growth. While the majority fell within the national average of 4.4%, there were also some outliers on both ends of the spectrum.<\/p>\n\n\n\n

Free State rental growth was the lowest in the country at just 1%. However, PayProp noted that this marks a return to growth after three negative quarters.<\/p>\n\n\n\n

The average Free State rent climbed to R6,391<\/strong>, the second-lowest in South Africa, but local landlords should be glad that things are moving in the right direction.<\/p>\n\n\n\n

Interestingly, on the other end of the spectrum, the North West posted the country\u2019s highest rental growth this quarter at 9.3%. Despite average rentals increasing by R507 to R5,985<\/strong>, it still has the cheapest rental properties in South Africa.<\/p>\n\n\n\n

Regarding the three economic hubs of South Africa – Gauteng, Kwa-Zulu Natal (KZN), and the Western Cape – they all posted rental price growth within the National average. <\/p>\n\n\n\n

Surprisingly, the most expensive province for rentals (the Western Cape) only saw growth of 2.8%. The Western Cape’s average rent reached R9,730 in Q2 from R9,462 a year earlier.<\/strong><\/p>\n\n\n\n

This is only R514 in front of the Northern Cape, which experienced the second-highest growth rate in the country. Average rents in the Northern Cape rose by R590 year-on-year, from R8,626 to R9,216<\/strong> \u2013 taking its average rental price from the cheapest in the country to the second most expensive.<\/p>\n\n\n\n

Gauteng\u2019s year-on-year rental growth of 4.5% took the average rent in the province to R8,691<\/strong> in Q2. That\u2019s a strong increase from Q1 when Gauteng posted the second-slowest rental growth in the country at 3.1%.<\/p>\n\n\n\n

On the other hand, KZN recorded a 4.4% growth in the quarter \u2013 putting it right on the national average.<\/p>\n\n\n\n

However, this is a slowdown compared to the 5% in Q1. KZN remains South Africa\u2019s third most expensive province for renters, with an average monthly rent of R8,817<\/strong>.<\/p>\n\n\n\n

The table below shows the average rent in all nine provinces and their respective rental growth rate over the past year. <\/p>\n\n\n\n

Province<\/th>Average rent price<\/th>Y-o-y growth<\/th><\/tr><\/thead>
Western Cape<\/td>R9 730<\/td>+2.8%<\/mark><\/td><\/tr>
Northern Cape<\/td>R9 216<\/td>+6.8%<\/mark><\/td><\/tr>
Kwa-Zulu Natal<\/td>R8 817<\/td>+4.4%<\/mark><\/td><\/tr>
Gauteng<\/td>R8 691<\/td>+4.5%<\/mark><\/td><\/tr>
National <\/strong><\/td>R8 375<\/strong><\/td>+4.4%<\/strong><\/mark><\/td><\/tr>
Mpumalanga<\/td>R8 281<\/td>+5.2%<\/mark><\/td><\/tr>
Limpopo<\/td>R7 663<\/td>+4.3%<\/mark><\/td><\/tr>
Eastern Cape<\/td>R6 777<\/td>+5.1%<\/mark><\/td><\/tr>
Free State <\/td>R6 391<\/td>+1%<\/mark><\/td><\/tr>
North West<\/td>R5 985<\/td>+9.3%<\/mark><\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
\n\n\n\n

Read: This is how you can shave years off your bond \u2013 and save close to R1 million<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

New data reveals the average price of rent in each province in South Africa.<\/p>\n","protected":false},"author":10,"featured_media":682715,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12755],"tags":[18410,853],"class_list":["post-713110","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","tag-rental-prices","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/713110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=713110"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/713110\/revisions"}],"predecessor-version":[{"id":713714,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/713110\/revisions\/713714"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/682715"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=713110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=713110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=713110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}