{"id":784645,"date":"2024-07-30T18:00:00","date_gmt":"2024-07-30T16:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=784645"},"modified":"2024-07-30T14:36:51","modified_gmt":"2024-07-30T12:36:51","slug":"the-two-most-expensive-cities-for-rent-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/property\/784645\/the-two-most-expensive-cities-for-rent-in-south-africa\/","title":{"rendered":"The two most expensive cities for rent in South Africa"},"content":{"rendered":"\n

Properties on the Atlantic Seaboard in Cape Town easily charge the most rent in South Africa, while upmarket apartments in Pretoria are also highly pricey.<\/p>\n\n\n\n

According to the latest Rode report, flat vacancy rates on a national level averaged 6.7% in Q2 2024, down from 7.9% in Q1 2024. Vacancy rates are thus below the national average of 7.2% in 2023. <\/p>\n\n\n\n

Vacancy rates are calculated by dividing the number of flats vacant by the total stock managed by managing agents.<\/p>\n\n\n\n

“Regionally, Gauteng surprised us with its flat vacancy rate declining significantly to 7,1% from 9,3% in the first quarter of 2024,” said the report. <\/p>\n\n\n\n

“This was due to lower vacancies in Johannesburg and Pretoria. Gauteng\u2019s flat rentals grew by 2% year on year in the first quarter, based on Stats SA data.” <\/p>\n\n\n\n

“As rental increases are not lifting the roof, the data suggests that property owners or their managers have generally kept rental levels in control to keep properties tenanted.” <\/p>\n\n\n\n

The Western Cape stood out with its low flat vacancy rate of 2.7% in Q2 2024, well below the national average.<\/p>\n\n\n\n

The Western Cape’s flat-rental growth of 4.2% was also better than that of Gauteng. <\/p>\n\n\n\n

“The Western Cape has the best tenants of all nine provinces based on first-quarter 2024 PayProp data, with only 14,2% of tenants in arrears.”<\/p>\n\n\n\n

“Let\u2019s also remember this is the province with the lowest unemployment rate in South Africa.” <\/p>\n\n\n\n

Rode said that the decline in the national vacancy rates since their COVID peak of 13% has supported rental growth.<\/p>\n\n\n\n

That said, the slower-than-inflation rent increase, combined with dropping vacancies and the growing number of tenants in arrears, means that property managers are not pushing up asking rentals unduly.<\/p>\n\n\n\n

A positive factor for the rental market over the short term is high borrowing costs, with the repo rate at a 15-year high of 8.25%. This has swayed many potential buyers to rather rent.<\/p>\n\n\n\n

However, the South African Reserve Bank looks set to cut interest rates in September, with inflation heading to the central bank’s target of 4.5%, the rand strengthening following the formation of the Government of National Unity (GNU) and the USA also set to cut interest rates.<\/p>\n\n\n\n

“Eventual declines in interest rates could see some people choose to buy rather than rent,” said Rode. <\/p>\n\n\n

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Most expensive areas <\/strong><\/p>\n\n\n\n

The Rode’s Report also includes data on the average price for rentals across South Africa. <\/p>\n\n\n\n

Unlike our previous comparisons that focused on two-bedroom apartments, we have decided to instead focus on upmarket 3-bedroom apartments. <\/p>\n\n\n\n

Overall, Camps Bay, Clifton and Bantry Bay on the Atlantic Seaboard in Cape Town had the highest rent at R130,000 for an upmarket three-bedroom apartment. <\/p>\n\n\n\n

Sea Point, Green Point and Three Anchor Bay on the Atlantic Seaboard followed in second place at R55,000. <\/p>\n\n\n\n

Using the available data, Cape Town and Pretoria are the only cities to be featured in the top 10, with rents starting at R17,000.<\/p>\n\n\n\n

Area <\/strong><\/td>Rent for an upmarket 3-bedroom flat<\/strong><\/td><\/tr>
Camps Bay\/Clifton\/Bantry Bay, Cape Town<\/td>R130 000<\/td><\/tr>
Sea Point\/Green Point\/Three Anchor Bay, Cape Town<\/td>R55 000<\/td><\/tr>
Muizenberg\/Kalk Bay\/Fish Hoek, Cape Town<\/td>R25 000<\/td><\/tr>
Tyger Valley area, Cape Town<\/td>R20 000<\/td><\/tr>
Groenkloof\/Brooklyn\/Most Waterkloof\/Erasmusrand, Pretoria<\/td>R20 000<\/td><\/tr>
Hatfield, Pretoria<\/td>R20 000<\/td><\/tr>
Milnerton Burgundy Estate, Cape Town<\/td>R18 500<\/td><\/tr>
Pretoria East, Pretoria <\/td>R18 500<\/td><\/tr>
Rondebosch\/Rosebank\/ Claremont, Cape Town<\/td>R18 000<\/td><\/tr>
Somerset West, Cape Town<\/td>R17 000<\/td><\/tr><\/tbody><\/table><\/div>
Rental data tends to be erratic due to the small sample sizes. <\/figcaption><\/figure>\n\n\n\n

Examples of upmarket properties that are available in Cape Town and Pretoria can be found below” <\/p>\n\n\n\n

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